What exactly is a GST audit?

Under GST, auditing entails inspecting the taxpayer's returns, records, and other documents. It is carried out per Section 35 of the CGST Act 2017, as well as Section 44(2), which mandates the GST audit.

GST audits are performed to determine whether the turnover, taxes paid, ITC refund claimed, and ITC availed stated in his annual report are true and fair. Furthermore, a GST audit aids in determining whether the taxpayer complies with the GST provisions. GST surcharge is levied on every registered person whose total revenue exceeds Rs. 2 crores during the fiscal year.

Types of Audits under GST

Turnover based audit It is carried out when the taxpayer's total turnover exceeds 2 crore INR.

General audit It is carried out after the commissioner issues an order. However, it is critical to provide 15 days' notice.

Special audit It is carried out after the deputy or assistant commissioner issues an order with the prior approval of the GST commissioner.

Who performs GST audits?

A general audit of a taxpayer may be conducted by the commissioner of CGST/SGST or any other authorised officer. The auditor must complete the audit within three months of the audit's start date. The commissioner has the authority to extend it for an additional six months by providing written justification.

Recommendations while preparing for GST audit

Your monthly and quarterly returns will be audited. You must have data as well as supporting documents on hand.

If you claim an additional input tax credit (ITC), you must pay 24 percent interest on the excess tax amount. In such cases, the auditor will reconcile your organization's returns. The time elapsed between the invoice date and the payment date should not be more than 180 days.

The payment amount must be the same as the invoice amount, including GST. If your payment is less than the invoice total (including GST), your input tax credit will be reversed to the extent of the short payment.

What are the results of GST audit

Findings of special audit refer to the positive or negative results obtained by the auditor after analysing the taxpayer's records. The taxpayer will also have the opportunity to be heard by the auditor in the findings of the special audit.

Advantages of GST audit

The voluntary audit allows for the accurate time of supply to be recorded. This decreased the number of pre-paid and post-paid taxes.

GST Audit enables you to identify the correct place of supply (such as IGST, SGST, CGST) You can use GST to determine whether or not your invoices were correctly raised (i.e. with all the necessary information)

The voluntary audit allows you to identify any unclaimed GST input tax credits, such as those on bank charges and other miscellaneous expenses.

GST Audit Programme Checklist

Audit Planning Execution Execution
Task_Assignment Accounts and Records Place Of Supply
Closure Planning
Documents Related To Supply Reconciliations Books Vs Portal
Filling Of Returns Refunds
GST Payments Reverse Charge Mechanism
GST Registration Certificate Supply
Input Tax Credit Time of supply
Input Service Distribution Valuation Of Supply
Job Work Miscellaneous


Businesses that want to ensure that their compliances, accounts, results, and returns are clear, hire a GST audit expert or opt for GST Audit Management software. This assists businesses in avoiding lawsuits. Audits (whether mandatory or voluntary) must be chosen by businesses to ensure smooth business operations.