GST Audit for FY 2019-20: Takeaways for Filing GST Annual Return

As we know a businessman having a turnover of more than 2 crores for FY for filing GST Annual Return. Taxpayers who have an annual turnover of additional than 2 crores in a year have to fill GSTR 9C form along with reconciliation statements and certification of audit in every financial year. In this article, we will discuss on GST Audit for FY 2019-20.

GST Audit for FY 2019-20

GSTR 9C form is an annual audit form and audit under GST” contains inquiry of documents, returns and other related documents that are conserved by a person registered under GST Act.

This entire mechanism is attended to assure that exact evidence is disclosed with respect to turnover, input tax credit availed, taxes paid, refund contended and assessment of the other related compliances as per GST Act that is to be ascertained by an approval expert.

Also the GST regime is deemed a trust-based taxation mechanism wherein a taxpayer has to undertake a self-assessment of his tax liability, file returns. and pay taxes. However, apparently, it appears that all taxpayers are honest. A variation of steps are expected to be taken by the government for apt implementation of the GST regime and audit is one amongst many of these estimates.

Further Implementation by Finance Ministry

As we Compare GSTR-3B with GSTR-1 before the filing of GSTR-9 It is significant for every taxpayer to “compare GSTR-3B with GSTR-1” for assuring that there is the shortage of gaps or variations like Unwanted issueI and the issuance of demand notices from tax authorities

Payment of Tax in Cash as per Reverse-Charge Basis.

In section 49(4) of the CGST Act 2017, “Input Tax Credit” (ITC) can be used for payment of output tax only. Accordingly, under Reverse Charge Basis (RCM), Tax has to be paid in cash only and advantages of ITC cannot be availed.

Interest charged in case of Untimely/Late Payment of GST

It is the duty of the taxpayer to pay GST timely. In possibility of late payment of GST, interest shall have to be compensated. Moreover, instructions in notices issued by tax authorities have to be precisely adhered to. And if excess ITC is claimed, the rate of interest to be spent shall be 24% on the “tax amount” that is in excess.

E-way Bill

In case of transportation of goods from one place to another, the transporter should possess an e-way bill that must tally with the statements published.

GST Audit Turnover in tune with “Income Tax Turnover”

As per the latest update, both the divisions – Department of Income Tax and Department of GST- shall market relevant information with each other. Accordingly, an individual necessities to be careful while documenting turnover under Income Tax and GST.

Surveying Inwards Supply and Outwards Supply

It is essential for the taxpayer to ensure that the apt rate is levied on both the Inwards Supply and Outwards Supply in expansion to considering exempted supply.

Types of GST Return