GST Audit Limit

By | May 3, 2018
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(Last Updated On: May 3, 2018)

GST Audit Limit

Q : Whether GST Audit is required for Turnover Exceeding One crore or Two crores under GST Act?

GST Audit Limit :  Every registered person whose aggregate turnover during a financial year exceeds two crore rupees he has to get his account audited under GST as per Section 35 of CGST Act 2017 read with Rule 80. 

[ Also Refer  GST Audit : Free Reference Material ]

Video Explanation on GST Audit Limit

Relevant Portion for GST audit Limit is produced as below

Relevant Section of GST for GST Audit Limit

Section 35 (5) of Central Goods And Services Tax Act 2017 (Accounts and other records )

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 and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.

Relevant Rule of GST for GST Audit Limit

Rule  80 (3) of Central Goods and Services Tax Rules, 2017 (Annual return)

Every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; [ Section 2(6) of CGST Act 2017 ]

However, interest or discount received by him on deposits, loans or advances will not be considered for calculating aggregate turnover [though interest is exempted service] – Removal of Difficulties Order No. 1/2017-CT, dated 13-10-2017.

Relevant Section of GST for GST Audit Limit and Filing of Audit Report

 Section  44 of Central Goods And Services Tax Act  2017 (Annual return)

 (1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

(2) Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed

Reference Material on GST Audit

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

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