GST authorities begin the audit exercise
India Inc will face the first fiscal audit under the GST regime.
The goods and services tax authorities (GST) have begun a nationwide audit of the returns filed for 2017-18, the first year of GST implementation, according to media reports.
The audit ordered by the authorities seeks to verify the declared billing, the taxes paid, the claimed refund and the available entry tax credit. It will also assess the compliance of companies with the provisions of the GST laws. According to the instructions, the audit of the large units must be completed within seven business days, the medium units in five business days and the small ones in three.
On December 18, 2019, the GST Council extended the final date for the submission of forms GSTR-9 (annual declaration) and GSTR-9C (declaration of conciliation) for 2017-18 to January 31, 2020 from 31 December 2019. GST audits begin as part of the government’s drive to improve compliance and increase revenue collection in the midst of an economic slowdown.
Taxpayers are requested to submit detailed records of GST forms, income tax documents and other documents for detailed records for fiscal year 2018. The tax authorities issued a detailed GST manual indicating that at least 70% of taxpayers in each commission they must be audited.