GST Audit

GST (Goods and Services Tax) audit is an independent review of a taxpayer's GST compliance and reporting. It is conducted to verify that the taxpayer has correctly complied with GST laws and regulations, maintained proper books of accounts, and accurately reported their GST liabilities and input tax credits.

GST audit is typically conducted by a chartered accountant or a GST auditor appointed by the government. The audit is conducted either by way of desk review or physical verification of the taxpayer's records.

The objectives of GST audit are to:

  1. Verify the correctness of the GST returns filed by the taxpayer.
  2. Ensure the proper maintenance of books of accounts and other records as required under GST laws.
  3. Identify any errors or discrepancies in the taxpayer's GST compliance and reporting.
  4. Determine the taxpayer's liability, if any, for interest, penalties, or other charges under GST laws.

The GST audit report is issued after the completion of the audit, which includes the findings, observations, and recommendations of the auditor. Based on the audit report, the taxpayer may be required to take corrective actions, pay additional tax, interest, and penalties, or face prosecution for non-compliance with GST laws.

GST audit is mandatory for businesses with a turnover of more than Rs. 2 crores in a financial year. However, smaller taxpayers may also be subject to GST audit if the GST authorities have reason to believe that there are discrepancies or non-compliance in their GST compliance and reporting.

In conclusion, GST audit is an essential compliance requirement for businesses under the GST regime. It helps ensure that businesses comply with the GST laws and regulations, maintain proper records, and accurately report their GST liabilities and input tax credits.


There are several benefits of GST (Goods and Services Tax) audit for businesses, some of which are:

  1. Identifying errors and discrepancies: GST audit helps businesses identify errors and discrepancies in their GST compliance and reporting. This can help businesses correct these errors and avoid potential penalties and interest charges.
  2. Improved compliance: GST audit helps businesses ensure compliance with GST laws and regulations. By identifying any non-compliance issues, businesses can take corrective measures and avoid potential legal and financial consequences.
  3. Improved internal controls: GST audit can help businesses improve their internal controls and processes for GST compliance. This can lead to better record-keeping, more accurate reporting, and improved risk management.
  4. Reduced risk of penalties: By identifying errors and discrepancies, GST audit helps businesses avoid penalties, interest charges, and other charges under GST laws. This can save businesses a significant amount of money in the long run.
  5. Increased transparency: GST audit helps businesses maintain transparency and integrity in their financial reporting. This can help build trust with customers, suppliers, and other stakeholders.
  6. Better decision-making: GST audit provides businesses with valuable insights into their financial and operational performance. This can help businesses make informed decisions and improve their overall performance.

In conclusion, GST audit offers several benefits for businesses, including improved compliance, better internal controls, reduced risk of penalties, increased transparency, and better decision-making. By availing GST audit services, businesses can ensure that they comply with GST laws and regulations, maintain accurate records, and minimize their risk of non-compliance.

How we work?

Unlocking Financial Success Together: The Forum for Chartered Accountants


We'd love to hear from you



A: A GST audit can be conducted by a Chartered Accountant (CA) or a Cost Accountant (CMA) who is registered as a GST auditor with the GST department.

A: Yes, a GST audit is mandatory for businesses whose annual turnover exceeds Rs. 5 crores in a financial year.

A: The due date for filing the GST audit report is December 31st of the following financial year.

A: Non-compliance with GST audit requirements can result in penalties, interest, and even prosecution under the GST laws.

A: The penalty for non-compliance with GST audit requirements is Rs. 25,000 or 0.5% of turnover, whichever is lower.

A: Yes, a GST audit can be conducted online through the GST portal using digital signatures.

A: A business should maintain the records related to GST audit for at least six years from the end of the financial year to which they pertain.

Apply now