GST Audit

GST Audit is required even though Taxable Turnover is less than 2 Crore

Section 2(6) of CGST Act 2017 defines the term "Aggregate Turnover" as 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.

As per Rule 80(3) of CGST Rules 2017 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.

Based on these provisions, GST Audit will apply every year for those GST Registered Businesses (GSTIN), whose turnover by Supply of Goods or Service is more than Rs. 2 Crores. A financial year covers the 12-month period beginning from April of a calendar year to March of the next calendar year.