FAQ’s on GST Annual Return & GST Audit
1) Who are exempted from filling GST Annual Return?
Ans: every Registered person other than following
- an Input Service Distributor,
- a person paying tax under section 51 (TDS) or section 52 (TCS),
- a casual taxable person and
- a non-resident taxable person,
Shall furnish an annual return for every financial year electronically in Form GSTR-9 on or before the thirty-first day of December following the end of such financial year.
2) What is the due date for GST audit?
Ans: Last date for GST audit is not specify in the act. But last date to file annual return is 31st December. Which will also be applicable for audit report.
3) Who is liable for GST Audit?
Ans. According to Section 35(5), GST audit is compulsory when the turnover is more than prescribed limit. Rule 80(3) provide for threshold of turnover as Rs. 2 Crore.
4) Whether turnover should be PAN Based or GSTIN wise?
Ans: Prima facie it seems that, Rule 80(3) provide for aggregate turnover. Section 2(6) of CGST Act defines the aggregate turnover. It provides that aggregate turnover shall be calculated PAN wise and not on GSTIN wise because no states is specifically provides turnover for GST Audit.
5) Whether any form is prescribed for audit report?
Ans: Yes, The prescribed form for audit report is Form GSTR 9C. This form is having two parts, first is reconciliation and second is certification.
6) What is the penalty for not conducting the GST Audit?
Ans: As per section 47(2) of CGST Act, Late fee for belated filing of GSTR-9 is Rs.100 per day subject to maximum of 0.25% of turnover in a state/UT. Similar provision is there in SGST Act also. Hence, in total there will be late fee of Rs.200 per day subject to 0.50% of turnover in a state on late filing of GSTR-9.
7) Whether GSTR-9 can be revised?
Ans: No such option has been provided in the law till now.
8) If any business was running only for a part of year, whether the GST audit will be required?
Ans: Yes. Audit will be required even if the business was in operations only for a part of year. This is subject to the turnover of business. If the turnover is more than Rs. 2 Cr audit is mandatory.
9) If more than one GST is there, then whether GSTR-9 is to be filed at Entity level or GSTIN wise?
Ans: According to section 25(4) of CGST Act, if a person has obtained registration in each state it shall be treated as a distinct person in respect of each such registration. Hence, GSTR-9 is required to be filed separately for each such GSTIN.
10) Whether GSTR-9 & GSTR-9C are same?
Ans: The answer is no. GSTR-9 is an Annual return which is required to be filed by every registered person irrespective of threshold limit of turnover, except mentioned in Q-1 GSTR-9C is the audit report form. And the requirement of GST Audit u/s 35(5) would arise only if prescribed limit of turnover exceeds Rs. 2 cr.
11) What are the consequences of the failure to file GSTR-9?
Ans: If one fails to file GSTR-9 then first late fees will be payable as discussed above. A notice may be issued u/s 46 requiring him to furnish such return within stipulated time.