Checking Under GST
Audits, however can largely reduce or remove such errors and thus save the businesses from Interest and penalty burdens. An Audit is basically undertaken to check if:
1. Business Accounts are in compliance with the applicable laws.
2. Any shortcomings or leakages can be found out and thus done way with in future.
3. Have a clear overall picture of the business and decide future course of plan and action
How is GST Audit necessary and beneficial for Businesses?
With the end of the 1st (First) Financial Year of Goods & Service Tax Act being implemented in India, we would certainly be trying to avoid errors on the GST Compliance Part. Errors like Non-payment / Short Payment of Output liability, Excess claim of Input Tax Credit (ITC) / Non-reversal of Input Claim, failure (willingly/unwillingly) to correctly read, understand, check the applicability, and applying the provisions such as Place of Supply, Time of Supply.
Need For GST Audit
Audit under GST involves examination of records, returns and other documents maintained by a GST registered person. It also ensures correctness of turnover declared, taxes paid, refund claimed, input tax credit availed and assess other such compliances under GST Act to be checked by an authorized expert.
GST is a trust-based taxation regime wherein a taxpayer is required to self-assess his tax liability, pay taxes and file returns.