India Entry & Business Startup Consultings

GST Annual Return and GST Audit

Audit under GST is the procedure of inspection of records, returns, and other documents retained by a taxable person. The objective is to authenticate the accuracy of turnover declared, taxes paid, refund claimed and input tax credit availed, and to evaluate the compliance with the provisions of GST.

GSTR-9 annual return:

  • GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. 
  • It contains of details concerning the outward and inward supplies made/received during the relevant previous year under various tax heads i.e. CGST, SGST & IGST and HSN codes.
  • It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. However complicated, this return assists in extensive reconciliation of data for 100% transparent disclosures.

What are the details required to be filled in the GSTR-9?

  • GSTR-9 is divided into 6 parts and 19 sections. Each part asks for details that are easily accessible from your previously filed returns and books of accounts.
  • Generally, this form asks for disclosure of annual sales, splitting it amongst the cases that are subject to tax and not subject to tax.
  • On the purchase side, the annual value of inward supplies and ITC availed thereon is to be revealed.
  • Also, these purchases have to be categorised as inputs, input services, and capital goods. Details of ITC that requires to be reversed due to ineligibility is to be entered.

Essentials of GST Annual Return & GST Audit

  • Every registered person whose turnover exceeds INR 2 crore in a financial year is required to file GSTR-9.If turnover exceeds INR 5 crore in a Financial Year then registered person is required to file GSTR-9C along with GSTR-9. 
  • GST annual reconciliation statement is filed in the form GSTR-9C. Statement of reconciliation between GSTR-9 and the audited annual financial statement is analysed, while GSTR-9A is the annual return to be filed those who have opted for the Composition Scheme under GST
  • Audit involves examination of records, returns and other documents maintained by the registered person. It also ensure correctness of turnover declared, taxes paid and refund claimed. A proprietor, partner or Board of Directors in case of a business should engage a GST auditor at the commencement of the financial year.
  • GSTR-9C statement of Reconciliation between the annual return in GSTR-9 filed for the financial year and the figures as per the audited annual financial statements of the taxpayer.

How ASC helps?

  • Assistance in downloading the desired forms GSTR-1, 2A, 2B, 3B and comparing with books of accounts to check mismatches.
  • Audit trail of GSTR-9\9C to GSTR-1, 2A and 3B at the invoice level
  • Preparation of Checklist to identify mismatches & compute the net tax payable.
  • Provide technical assistance and representative services during departmental audits.
  • Preparation and filing of annual return through FORM GSTR-9 & 9C.
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