FGST Audit: Here's Everything You Need to Know

GST stands for Goods and Service Tax. It is a multi-stage tax system implied by the Government on the sales of goods and services. The main aim of this taxation system is the removal of the cascading effect of other indirect taxes. Various measures are undertaken by the Government to know whether the taxpayers have correctly self-assessed their tax liability. One such measure for the implementation of GST is audit. 

 

GST Audit is similar to an audit. It involves examination of records, returns and other documents for specified purposes maintained by a GST registered person. It also verifies whether the turnover has been declared correctly, taxes paid, and refund claimed and input tax credit availed. 

 

Requirement of GST Audit

 

• GST is the self-assessment tax regime so it is required for ensuring whether taxpayer has correctly assessed his liability.

• It involves examination of records, GST returns and other documents maintained by taxable individual. 

• To ensure that financial statements are free from the risk of material misstatements.

 

Types of GST Audit

 

1. In this audit type every registered person whose aggregate turnover during a financial year exceeds two crore rupees as specified in 80(3) of CGST Rules, 2017 is required to furnish a copy of the audit records. It should be duly attested by a Chartered Accountant or a Cost Chartered Accountant.

 

2. Normal audit or general audit is initiated for any registered person by Commissioner or legal representative or any officer authorised by him by giving 15 days prior notice. 

 

3. This is a Special Audit type in which a registered person can be directed to get his records audited by a Chartered accountant or Cost accountant. It is initiated on the order of deputy/ assistant commissioner during inquiry, investigation or any other proceedings depending on the case complexity. 

 

Only a chartered accountant or a cost accountant can perform a GST audit u/s 35. 

 

Important accounts to be reviewed 

 

• Sales and stock register

• Purchase register 

• To check whether all accounts or records are maintained

• Whether financial statements are prepared as per books of accounts

• GST expenses

• Output tax challan 

• Input tax credit availed and utilised

• e-Invoices and IRN generated 

• Any changes made under GST rules during the period

 

Documents to be furnished by the taxpayer

 

• Audited financial statements (which is pan-based)

• Annual return in form GSTR-9 (for every gstin)

• Certified reconciliation statement in form GSTR-9C, reflecting reconciled values of supplies and tax amounts declared in GSTR-9 compared to audited financials in part-a, along with the audit report in part-b.

 

Due date of submission of GST Audit report - Registered person shall furnish GSTR-9 and GSTR-9C on or before 31st December* of the subsequent financial year.

 

Penalty - As per the GST Act, no special penalty is prescribed. Hence, it is subjected to a general penalty of INR 25,000.

 

For complete assistance on GST filing and audits, connect with RBG Consultants. We have a robust team of the top Chartered Accountants in Delhi. Get top-class GST consultancy services from the top CA in Delhi. Contact us now!

Company Registration Consultants in Dwarka

A private limited company in India is one of the most popular types of corporate legal entities in India. All companies registered in India are governed by MCA (Ministry of Corporate Affairs) under the Companies Act, 2013. It is highly recommended to register your company as it offers numerous benefits. The most important one is that transferring or sharing ownership of registered companies is quite easy. 

 

 

Companies Act, 2013 Section 2 (68) defines a private company as a company with the minimum paid-up share capital of one lakh or higher as may be prescribed. It provides that:

 

• There is a restriction in transferring shares

• The number of members in the case of private companies is limited to two hundred

• Prohibits any invitation to the public to subscribe to any securities of the company

 

Company registration requirements 

 

To register a private limited company in India, a minimum of two people are required. (two shareholder/directors) A natural person can be both a director and a shareholder. On the other hand, a corporate legal entity can only be a shareholder. With the advent of the internet, the process of company registration has been made easy, quick and affordable. Let’s check out the different steps involved:

 

1. Two shareholders/ two director

 

As stated earlier, to register a private limited company, a minimum of two directors and shareholders are required. 

 

2. Unique name

 

The name of your business must be unique. Also, the name suggested by you should not match with any existing companies or trademarks in India.

 

3. Minimum capital contribution requirement 

 

A company should have an authorized capital of minimum of INR 1 lakh when it is going for company registration in Dwarka.

 

4. Registered office requirement 

 

There is no requirement for the registered office to have a commercial or industrial space. The registered office of a company can also be a residential property so long as an NoC certificate from the landlord and the rental agreement are obtained. 

 

(Please note - this is just a primary requirement as the number of directors and shareholders can be increased)

 

Documents required for company registration 

 

PAN Card: A copy of PAN Card of the proposed Directors of the Company.

 

Address Proof: The address proof must include the name of the Director as mentioned in the PAN Card.

 

Residential Proof: In addition to the address proof, the residential proof is also required at the time of company registration. Similar to address proof, it must also contain the name of the Director as mentioned in the PAN Card. Mobile bill, telephone bill, bank statements are acceptable residential proof. 

 

In addition to the above, the following documents must also be provided.

 

• Landlord NOC

• Electricity/ water bill

• Copy of Adhaar card/ voter identity

• Passport size photographs of Directors

• Copy of rent agreement is required if it is a rented property

 

Benefits of registering a business

 

• Limited liability protection - running a business involves the risk of losses, but due to limited liability protection, entrepreneurs could take the risk without the fear of losing out all. 

• Transferability of a registered business is easy. 

• Separate legal entity

• Improve credibility by being a registered company

• Funding of the business in the form of debt or equity benefits.

 

If you want to start a business of your own, company registration should be your topmost priority owing to the multiple advantages it offers. RBG Consultant offers company registration in Dwarka. They help you with the company formation procedures which ultimately makes your business credible and increases authenticity. You can rely on them if you wish to register your business with a view of higher growth aspirations. RBG Consultants is committed to helping entrepreneurs and small enterprise owners start, manage their businesses at an affordable price!