What is GST Audit?

GST Audit is a detailed verification of books of accounts, GST returns, invoices, and supporting documents maintained by the taxpayer to confirm correctness of turnover, ITC claims, refunds, and statutory compliance.

• Turnover declared in GST returns
• Input Tax Credit (ITC) claimed
• Refunds applied or received
• Compliance with GST rules and regulations

Proper GST auditing helps avoid penalties, strengthens financial transparency, and ensures complete regulatory compliance.

Types of GST Audit

• Turnover-Based Audit: Applicable when turnover exceeds prescribed GST limits.
• Departmental Audit: Conducted by GST authorities to verify returns, ITC, and tax payments.
• Special Audit: Ordered for discrepancies or complex transactions and performed by CA/CMA.

Penalty for Non-Compliance

• Penalty for non-furnishing or incorrect GST returns
• Interest on unpaid or short-paid tax
• Disallowance of incorrect ITC claims
• Departmental notices or legal proceedings
• Additional fines based on severity