GST Audit

224 views 2 replies

Shivish Verma

C A

376 Points Joined August 2009

Hi Friends

I have a client, a Private Limited Company, constructing High rise apartment. During the F Y 2017-18, he collected advances including GST from buyers and reported in GSTR 1 nd 3B as advance money. In profit loss statement also, there is no sale or revenue. But total advance recd excluding GST exceeds Re 2.00 Cr.

Is he liable to get Audited under GST provision ?

Please reply

Thanks

Replies (2)

PEP CONSULTANCY

118 Points Joined March 2018

Yes, supply of device also includes advance received on future supply. As the advance amounts is more tgan Rs. 2 crore, he has to get GST audit done

RAHUL

Student CA Final

377 Points Joined November 2014

GST Audit is based on the concept of Aggregate Turnover. Aggregate turnover includes the supply of all taxable goods/ services, including exempt goods/ services. The time of supply of goods/services is earliest of:

1. Issue of Invoice

2. the last date on which invoice should have been issued (in case of goods)

3. the date of provision of services

4. Date of receipt of advance/ payment

In your case the time of supply is advance received and thus the services are taxable in the current year itself. So GST sudit would be required as the threshold is exceeded.