Every now and then government keeps amending and updating rules and procedures related to Goods and Service Tax (GST). Due Date of GST Annual Return (GSTR 9) and GST Audit (Form GSTR 9C) for FY 2018-19 is 31st December, 2020. One of the major issue is GST Audit Turnover. For GST Audit, one must know whether GST Audit is mandatory for them or not. These have led to chaos and confusion among the practitioners and Chartered Accountants. Here, let us clarify some frequently raised doubts related to the GST Audit Turnover.
What is the GST Audit turnover limit for Financial Year 2017-18, FY 2018-19?
Financial Year 2018-19:
Business having annual turnover of more than Rs 5 crore, are required for GST Audit for Financial Year 2018-19. For the same financial year (FY 2018-19) requirement of GST Audit, for business with turnover less than Rs 5 crore is waived off.
Financial Year 2017-18:
In case of financial Year 2017-18, if the annual turnover of a registered taxpayer exceeds Rs. 2 crores in a financial year, then he was required to get his accounts audited by a Chartered Accountant or Cost Accountant.
Read Also: GST Refund of Input tax Credit- Question and Answer
Who is required to file GST Annual Return or GSTR-9?
GST Annual return is filed in Form GSTR-9. It contains the detailed summary of outward supply, taxes paid thereon, input tax credits claimed, taxes paid and refund claimed in the financial year. For FY 2018-19, Form GSTR 9 is mandatory for turnover more than Rs 2 crores.
Therefore, Requirement of GSTR 9 and 9C for FY 2018-19 is as follows-
| Aggregate Turnover | Annual Return (GSTR – 9) | GST Audit (GSTR – 9C) |
|---|---|---|
| Turnover less than 2 crores | Optional | – |
| Turnover more than 2 crores upto 5 crores | Mandatory | Optional |
| Turnover exceeding 5 crores | Mandatory | Mandatory |
Read Also: Maintenance of books of Account and Records under GST law
What is Aggregate Turnover in GST?
The term “aggregated turnover” means the aggregate value of all taxable supplies, exports of goods and services or both, exempt supplies and interstate supplies of business having the same Permanent Account Number (PAN), to be computed on all India basis. However, such taxable supplies do not include the value of inward supplies on which GST is paid under reverse charge basis. The aggregate turnover in whole also does not include Central tax, State tax, Union territory tax, Integrated tax and cess also.
In simpler words, the total of the following shall be considered as an aggregate turnover:
- Total Value of all taxable supplies of goods and services
- Total Value of all Inter-state supplies
- Total Value of all exempt supplies of goods and services
- Total Value of all export of goods or services or both
However, the following items would be excluded from Turnover:
- Inward supplies on which taxes are paid under reverse charge.
- Tax and cess under Goods and Service Tax.
- Goods supplied for or received back as job work
- Transactions which are neither supply of goods nor service.
Read Also: GST Input Tax Credit (ITC) Set-off Rules – Simplified with examples
Therefore, Turnover would also include the following:
- All taxable supplies other than supplies on which reverse charge is applicable.
- Supplies between distinct entities of same business.
- Inter-sate supplies.
- Goods supplied to job worker on principal to principal basis.
- Export or zero rated supplies.
- Goods received from job worker on principal to principal basis.
- Supplies of agents/ job worker on behalf of the principal.
- Exempted supplies under GST: like Diesel, Petrol, Liquor etc.
As per relevant section of GST exempt supply means any supply of goods or/and services or both which may be wholly exemption from tax under relevant section that attract nil rate of tax, and includes non-taxable supply.
GST Audit is applicable when Total Turnover on PAN India basis exceeds 5 crore in FY 2018-19. However, GST Audit will be done GSTIN wise. For example, BabaTax has unit in Delhi having turnover of 2 crore, in Maharashtra 2 crore and in Gujarat 2 crore. Total turnover is, therefore, 6 crore. Therefore GST Audit is applicable to all its units.
Read Also: GST Notice for GST Audit by the Department
Who are not required to file GST Annual Return and Audit?
Ans. Following person are not required to file GST Annual Return (GSTR-9) and GST Audit (GSTR 9C)
- Input Service Distributor
- Tax deductor
- Tax collector
- Casual taxable person
- Non-resident taxable person
- Person supplying OIDAR service from Place outside India [Notification No 30/2019 Central Tax Non Rate]
- Foreign Airlines are not required to submit Form GSTR9C [Notification No 30/2019 Central Tax Non Rate]
Read Also: GST audit of FY 18-19 : Not to repeat the mistakes done in FY 17-18 audit
What do you mean by PAN INDIA in GST?
The purchase and sales that took place in different states by a single person using their Permanent Account Number (PAN), will be taken cumulatively to consider the total turnover of an entity or person. With respect to, the GST registration threshold limit as well. Therefore, it means GST registrations, needs to be taken state wise but it is included under same PAN. As GST is PAN India not a state wise tax levy system.
Read Also: Easy way for Reconciliation of GSTR 2A with GSTR 3B : GST Returns
For any questions, you may reach us at Discussion Forum
The author of the above article is Sneha Bhalotia.
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