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who is liable to get his accounts to be audited?

Dalip Soni (116 Points)

26 May 2018

please let me know that who is liable to get his accounts be audited under section 35(5)

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2 Replies

Vinod Babu (24191 Points)
Replied 26 May 2018

Audit by a Chartered Accountant or a Cost Accountant – Section 35(5) of the CGST Act/ SGST Act read with Rule 80(3) of the CGST/SGST Rules, 2017

Every registered person whose turnover during a financial year exceeds the prescribed limit of Rs. 2 Crore shall get his accounts audited by a Chartered Accountant or a Cost Accountant.

It is to be noted very carefully here that though in Section 35(5) the term “turnover” has been used, yet it shall mean “aggregate turnover”.

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CA Sunil Kumar (Chartered Accountant) (4519 Points)
Replied 26 May 2018

GST AUDIT - Section 2(13):

It is an examination of records, returns and other documents maintained by the registered person under this Act to verify:

• The correctness of turnover declared,

• Taxes paid,

• Refund claimed and

• Input tax credit availed, and

• To assess his compliance with the provisions of this Act or the rules made thereunder; COMPULSORY AUDIT OF GST – SECTION 35(5):

• Every registered person

• Whose turnover during a financial year exceeds Rs. 2 crores

• Gets his accounts audited by a CA or CWA ANNUAL RETURN (GSTR 9C) SECTION - 44(2)

GSTR 9 should be filed by the regular taxpayers filing GSTR 1, 2, & 3 whereas, the registered person who is liable to get their accounts audited under this act shall file return in form GSTR 9C. along with:

• Copy of audited annual accounts and

• Reconciliation statement of tax already paid and tax payable as per audited accounts.

PENALTY:

1. In case of failure to file annual return: Rs. 100 per day per act subject to a maximum of 0.25% of state turnover.

2. In case of failure to get accounts audited from CA: upto Rs. 25,000/-