All about audit under GST

by Ravi Kumar


The process of examining the records, return filing, and other documents maintained by a person liable to pay tax is called audit under GST.

What is the purpose of an audit?

It is important to make sure that the taxpayer has submitted their correct turnover, claimed the correct tax credit, and paid the correct amount of taxes. To validate all of this, an audit is performed.

When shall a person require getting his accounts audited?

According to Section 35(5), those businesses obtained GST Registration Online application, whose annual turnover exceeds or equals to 2 crores is needed to get his accounts audited by a chartered accountant.

What documents are required for an audit?

  1. To perform the audit, he must provide the following documents to the chartered accountant.
  2. Annual turnover referring from GSTR 9 form latest by next financial year dated 31st December.
  3. Copy of the account which was audited previously.
  4. An original reconciliation statement in form GSTR-9C for rechecking the supplies declared by the taxpayer in the return file with the audited version of the annual financial report.
  5. Purchase Bill of Required Financial Year. 
  6. Sale Bill of Required Financial Year.
  7. Refund Details
  8. Credit Ledger Details
  9. Debit & Credit Details of Required Financial Year

What next if we found unpaid taxes?

If any incorrect details or unpaid taxes are found during an audit, then it can be corrected by SUBJECT TO PAYMENT OF Taxes with INTEREST.

Note: Any rectification post the due date for filing the returns for the second quarter or September is strictly prohibited.

What if the audit doesn’t match?

If the audit doesn’t match even after done by a certified chartered accountant, then according to section 65:

  • An officer will be assigned by the commissioner of Central or state GST Audit, who will conduct an audit for the taxpayers.
  • The audited will be informed within 15 days after an officer is assigned.
  • The assigned auditor should complete the audit within three months from the starting date.
  • In case the auditor requires more time, then it should be permitted by the commissioner with a written note and a valid reason.

What is the duty of an auditee towards the assigned auditor?

The auditee will have to co-operate in the following ways:

1- The auditee will have to appear with the documents necessary for verification.

2- He or she will have to co-ordinate with the assigned auditor to complete the audit on time.

Results of the second audit

After the audit is done by the assigned expert, the taxable person will be informed within notice within 30 days with:


  • The outcome from the expert audit
  • Reason for discrepancy
  • The solution to correct it

If any unpaid, short paid tax or tax credit availed wrongly is noticed in the audit results, then the necessary actions will be taken.

Special Audit according to section 66

Who can order/ conduct a special audit?

Any Ranked officer higher or equal to the assistant commissioner can perform a special audit according to section 66. This can only be achieved if the commissioner observes that:

1. A taxable person not provided the correct value of supply.

2. Input tax credit claimed by the taxpayer is more then what he should avail.

Note: Even if the taxpayer has already conducted an audit before, the commissioner can demand a particular review.

What shall be the time limit for a special audit?

This should be completed within 90 days, and it can also be extended if required.


The commissioner will take in charge of all the expenses

Findings of special audit

If any discrepancy is found during the special inspection, then the taxable person will give a chance to explain.

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