WHO, WHAT, WHY, WHEN AND WHERE OF GST AUDIT and LATE FEES AND PENALTY
As we all know that the due date for filing GST Annual Return (GSTR-9) and to comply with GST Audit (GSTR-9C) for the Financial Year 2017-18 is 31st December, 2018, the agitation among the assesses is increasing with the approaching due date. However, the concept of an audit by professional accountants is not new to Indian Indirect Tax Laws. The only difference is that the VAT Audit is replaced by GST Audit.
In addition to routine statutory and tax audits, the Government with the intent to get certified GST audit reports (certified by a Professional Accountant) and as a measure to aid stronger tax governance, under the GST regime as well, it has introduced the concept of GST audit and GST annual return.
WHO needs to comply with GST Audit?
Under GST, all registered taxpayers are required to submit an annual return. This is broadly an aggregation of the disclosures made in periodic returns filed during the year.
The GST audit, on the other hand, is a requirement for registered taxpayers with an aggregate annual turnover exceeding Rs 2 crores.
Under GST, ‘aggregate turnover’ is computed on the basis of the Permanent Account Number.
However, an audit will be required to be conducted for all GSTINs obtained for the PAN. For instance, in case an entity has obtained 10 GSTINs, 10 GST audits will be required to be submitted if the aggregate turnover during the financial year exceeds Rs 2 crores on a pan-India basis.
WHAT Form Needs To Be Submitted Under GST Audit?
Form GSTR-9C is required to be submitted. The format was released by the government in September, through notification 49/2018 – Central Tax, dated 13thSeptember, 2018.
The Government has tried to keep the notified form GSTR-9C quite simple and crisp (approx. 10 pages) and divided it into two parts the reconciliation statement and certification from auditor. The reason behind keeping it simple is to facilitate the assessee to easily comply the GST audit requirements without any special expertise.
WHY Does A Taxpayer Need To Submit A GST Audit Form?
Section 35(5) of the Central GST Act 2017 reads: “Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant.”
Section 42(2) asks for a reconciliation statement for “reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement.”
WHEN Does A Taxpayer Need To Submit The GST Audit Form For FY18?
As per Section 44 of the Central GST Act. The GST audit form for FY18 is to be submitted by December 31, 2018.
WHERE And How Does A Taxpayer Submit The GST Audit?
Technically, Form GSTR-9C is to be filed electronically through the common GSTN portal.
As it is clear from the above discussion that as the dates for GST Audit and GST Annual Return coincide, the registered taxpayers may have to struggle for complying with the requirements and at the same time tax professionals are also required to perform the audits with adequate skills and competence and within due time so as to avoid late fees and penalties
PENALTY FOR LATE FILING OF GSTR-9 FORM
Late fees for not filing the GSTR 9 within the due date is Rs.100 per day. Per act up to a maximum of an amount calculated. At a quarter percent of the taxpayer turnover in the state or union territory. Thus it is Rs 100 under CGST & 100 under SGST, the total penalty is Rs 200 per day of default. There is no late fee on IGST.