GST (Goods and Service Tax) is a one tax regime impelled by Government to promote a unitary basis of transacting business in India. It enables every assessee to self-assess his tax liability & file timely returns to government without any major intervention of any tax official. As the regime majorly stresses on self-assessment procedures, it puts up a need for a rigorous audit mechanism, which will ensure effective measurement and compliance of all the legal associated provisions by every taxpayer.

As per section 2(13) of the CGST Act 2017, GST Audit means the examination of records, returns and other documents maintained or furnished by the registered person under the GST Acts or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of the GST Acts or the rules made there under;

Types of GST Audit:
1. Every registered person whose aggregate turnover during a financial year exceeds 2 Crore has to mandatorily furnish a copy of the audit records along with the reconciliation statement & FORM GSTR-9C duly attested and certified by a Chartered Accountant or a Cost Accountant to the tax department.
2. These type of audits are undertaken by the Commissioner, legal representative or any officer authorised for such period, at such frequency and in such a manner as prescribed.
3. This is a Special Audit type ,in this a registered person can be anytime directed to get his records audited by a Chartered accountant or Cost accountant during inquiry, scrutiny, investigation or any other proceedings depending on complexity of case.

For turnover based audit, aggregate turnover is calculated as follows:
Aggregate turnover = Value of all taxable (inter-state and intra-state) supplies + exempt supplies + export supplies of all goods and services
Turnover is calculated on the basis of PAN, therefore the total turnover for that PAN is taken into consideration for GST purposes.

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