Audit under GST isn’t just another tax compliance requirement—it’s the government’s way of making sure businesses are playing fair. The idea is simple: businesses assess their own tax liability under GST, but sometimes, a little double-checking is necessary. And that’s where GST audits come in.

Now, before you panic, remember—an audit doesn’t necessarily mean something is wrong. Think of it like a financial health check-up. If all is well, you get a clean report. If not, well… let’s just say, it’s better to know sooner rather than later.

🔍 What is Audit under GST?

A GST audit is a detailed examination of a taxpayer’s records, returns, and documents to:

✅ Verify the correctness of turnover declared
✅ Ensure proper tax payments
✅ Check ITC (Input Tax Credit) claims
✅ Identify any errors or misreporting (intentional or otherwise)

In short, it’s the government’s way of saying, “We trust you, but let’s verify.”

🎯 Why is Audit under GST Required?

While businesses are expected to self-assess their tax liability, audits help:

📌 Ensure compliance with GST laws
📌 Detect and correct errors in tax filings
📌 Prevent tax evasion (because, let’s face it, not everyone plays fair)
📌 Maintain transparency in the taxation system

So, whether you’re a tax wizard or just figuring out GST, audits are here to keep everyone accountable.

💼 Who Needs to Get Their GST Accounts Audited?

Not every business is lucky enough to qualify for a GST audit (yes, we said lucky). Here’s who needs to undergo one:

Category	Turnover Threshold	Audit Requirement
Before FY 2020-21	Above ₹2 Crore	Required to get GST accounts audited by CA/CMA
From FY 2020-21 onwards	Above ₹5 Crore	Self-certification of GSTR-9C required (no CA/CMA audit)

So, if your annual turnover is more than ₹5 crore, congratulations—you just won yourself an audit (or at least, a self-certification process).

🛠️ Types of GST Audit: Not All Audit under GST Are the Same!

Type of GST Audit	Conducted By	When Does It Apply?
Turnover-Based Audit	Chartered Accountant (CA) or Cost Accountant (CMA)	For businesses exceeding ₹2 crore (until FY 2019-20)
General (Departmental) Audit	GST Officer (CGST/SGST)	When ordered by the Commissioner
Special Audit	CA/CMA appointed by Commissioner	If the officer suspects tax evasion or incorrect ITC claims

📊 How is Turnover Calculated for GST Audit?

Understanding turnover is crucial because it determines whether you need an audit. Your aggregate turnover includes:

✅ Taxable supplies (both interstate and intrastate)
✅ Exempt supplies (yes, even tax-free income counts!)
✅ Exported goods and services
✅ Supplies by job workers or agents on behalf of a principal

🚨 What’s NOT included?
❌ Reverse charge inward supplies
❌ GST taxes (CGST, SGST, IGST, etc.)
❌ Activities that are neither goods nor services (like employee salaries)

If your PAN-based aggregate turnover exceeds ₹5 crore, GSTR-9C self-certification is mandatory.

📑 Forms Applicable Under GST Audit & Annual Return

Taxpayer Type	Form to be Filed	GST Audit Requirement
Regular Taxpayers	GSTR-9	Mandatory
Composition Scheme Taxpayers	GSTR-9A	No audit required
E-Commerce Operators	GSTR-9B	Not yet implemented
Turnover > ₹5 Crore	GSTR-9C (Self-Certified)	Required from FY 2020-21 onwards

🔹 Important: Before FY 2020-21, GSTR-9C had to be CA/CMA-certified. Now, it’s self-certified for businesses with over ₹5 crore turnover.

📝 Documents to Be Maintained for Audit under GST

✅ Sales Register 📊
✅ Stock Register 📦
✅ Purchase Register & Expenses Ledger 🧾
✅ ITC Claimed & Utilized 💰
✅ GST Returns (GSTR-1, 3B, 9, 9C, etc.) 📄
✅ E-way Bills & E-invoices 🚚

Keeping these documents handy can save you from last-minute panic when the tax department comes knocking.

⏳ Due Date for GST Audit Reports

Form	Due Date
GSTR-9 (Annual Return)	31st December of the following financial year
GSTR-9C (Self-Certified Reconciliation Statement)	31st December of the following financial year

Example: For FY 2023-24, the last date to file GSTR-9 and GSTR-9C is December 31, 2025 (unless the government extends it).

🚨 Penalty for Not Filing GST Audit Reports

Unlike income tax audits, there’s no specific penalty under GST. However, non-compliance can attract a general penalty of ₹25,000.

👉 Pro Tip: Missing deadlines can lead to unnecessary scrutiny and tax demands. Avoid late filings and keep your records tidy!

🚀 Final Thoughts: GST Audit is Not as Scary as It Sounds!

A GST audit may seem like a daunting process, but if your records are in order, you have nothing to worry about. Here’s how to stay ahead:

✅ File returns on time (GSTR-1, 3B, 9, and 9C)
✅ Maintain proper records (sales, purchases, stock, ITC claims)
✅ Ensure reconciliation between books and GST returns
✅ Stay updated on rule changes (because tax laws love to evolve)

If you’re above the ₹5 crore threshold, just ensure your GSTR-9C is self-certified and filed on time.

Stay Compliant, Stay Worry-Free with Compliance Monk!

GST audits can be tricky, but with Compliance Monk, you’re always a step ahead. From accurate turnover calculations to seamless GSTR-9C filings, we ensure your records are audit-ready and error-free.

Our experts handle reconciliation, documentation, and on-time filings—so you never miss a deadline or face unnecessary penalties. Whether it’s a routine GST audit or a departmental scrutiny, we’ve got your back with expert guidance and hassle-free compliance.

Contact us today!

FAQs on GST Audit

1. What is a GST audit?

A GST audit is the examination of financial records, returns, and other documents of a registered taxpayer to verify the accuracy of tax payments, refunds claimed, and compliance with GST laws.

2. Why is a GST audit required?

GST audits ensure that businesses correctly assess their tax liabilities, maintain transparency, and comply with GST regulations. It helps prevent errors, tax evasion, and legal complications.

3. Who is required to undergo a GST audit?

Businesses with an annual aggregate turnover exceeding ₹2 crore (as per earlier provisions) were required to get their accounts audited by a Chartered Accountant or Cost Accountant. However, from FY 2020-21 onwards, the requirement for CA/CMA certification has been removed, and self-certification is required for businesses with a turnover exceeding ₹5 crore.

4. What are the types of GST audits?

• Turnover-based Audit – Conducted by a CA/CMA for businesses exceeding the prescribed turnover limit (now self-certified).
• Departmental Audit – Conducted by tax authorities based on an order from the Commissioner.
• Special Audit – Ordered by the Assistant Commissioner with prior approval of the Commissioner in cases of suspected misreporting.

5. How is turnover calculated for GST audit applicability?

Aggregate turnover includes taxable supplies, exempt supplies, exports, and inter-state supplies but excludes inward supplies liable for reverse charge and GST taxes (CGST, SGST, IGST).

6. What forms are applicable for GST audit?

• GSTR-9 – Annual return for regular taxpayers.
• GSTR-9A – Annual return for composition taxpayers (now discontinued).
• GSTR-9C – Reconciliation statement (self-certified for businesses above ₹5 crore turnover).

7. What documents are required for a GST audit?

Key documents include financial statements, GST returns, sales and purchase registers, input tax credit records, and reconciliation statements.

8. What is the due date for filing GST audit reports?

GSTR-9 and GSTR-9C must be filed by 31st December of the following financial year unless extended by the government.

9. What happens if I fail to submit the GST audit report?

Non-filing may attract a general penalty of ₹25,000, along with interest and additional liabilities in case of tax discrepancies.