Threshold for GST Audit

A registered taxpayer whose annual turnover exceeds ₹2 Crores in a financial year is required to get their accounts audited by a Chartered Accountant or Cost Accountant. The following documents must be filed electronically:

• GSTR-9 (Annual Return) – Due by 31st December of the subsequent financial year

• GSTR-9C (Reconciliation Statement) – Certified reconciliation between the returns filed and audited financials

• Audited Financial Statements

• Any other documents as notified

General Audit

Conducted under Section 65 of the CGST Act, a General Audit is initiated by GST authorities through a general order issued by the Commissioner. The audit is carried out at the registered business premises after a prior notice in Form GST ADT-01, given at least 15 days in advance.

The audit must be completed within 3 months from the start date. In certain cases, this period may be extended up to 6 months by the Commissioner. Upon completion, the audit officer submits a report in Form GST ADT-02 within 30 days, outlining the audit findings.

During the audit, the taxpayer must provide complete access to records, returns, ITC details, GST rates applied, stock statements, and any other required documentation.

Special Audit in Maharashtra

Special Audits are conducted under Section 66 when the GST authorities, during investigation or assessment, find discrepancies in the value declared or the ITC claimed. Even if accounts have already been audited, a Special Audit can still be ordered based on case complexity.

The Assistant Commissioner, with prior approval from the Commissioner, appoints a Chartered Accountant or Cost Accountant to conduct the audit.

• The audit must be completed within 90 days, extendable by another 90 days upon request.

• Expenses and remuneration for the audit are borne by the GST department.

Post-Special Audit Procedure

After the audit, the taxpayer is given an opportunity to respond to the findings. If any discrepancies such as unpaid taxes or ineligible ITC are identified, appropriate recovery proceedings may be initiated.

Due Date for GST Audit Filing

The standard deadline for filing GSTR-9 and GSTR-9C is 31st December of the following financial year.

Penalty for Non-Filing

A general penalty of up to ₹25,000 may be imposed for not submitting the GST audit report, although there is no specific penalty provision laid out under the law.

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