Overview
GST Audit refers to the detailed examination of a taxpayer’s records, returns, and financial statements to verify the correctness of turnover declared, taxes paid, input tax credit claimed, and compliance with GST provisions. GST compliance in India is governed by the Central Goods and Services Tax Act along with State GST Acts and Integrated GST Act. An audit ensures that the business has correctly followed GST rules and maintained proper documentation.
Earlier, GST Audit by a Chartered Accountant was mandatory if turnover exceeded the prescribed limit under Section 35(5). However, after amendments, the requirement of mandatory GST audit certification was removed. Still, businesses may be subject to departmental audit under Section 65 or special audit under Section 66 of the Act. The GST department may conduct an audit to verify records and identify any tax short payment, excess input tax credit claim, or incorrect refund claim. Therefore, internal GST audit remains extremely important for risk management.
GST Audit involves reconciliation between GST returns such as GSTR 1, GSTR 3B, and annual return GSTR 9 with books of accounts and financial statements. Any mismatch in turnover, tax liability, or input tax credit may lead to notices, demand, interest, and penalties. Proper reconciliation and review help businesses avoid litigation and financial exposure. It also ensures that GST compliance aligns with income tax and financial records.
At Bizglobal, we conduct thorough GST audit and reconciliation services to identify discrepancies before they become major issues. Our team reviews returns, input tax credit, vendor compliance, and outward supplies in detail. We provide reconciliation reports, suggest corrective actions, and assist in departmental audits. With our professional support, your business can maintain clean GST records and reduce compliance risks.
