GST Audits
The main motive behind introducing the Goods and Service Tax (GST) is to float an efficient and transparent tax collection process in the nation. This system will reduce corruption in the inter-state transfer of products and services. This system allows a taxpayer to access his tax liabilities and pay the applicable taxes. GST also lays down provisions for demand and recovery, in case of non-payment of tax, return not filed, or short paid taxes. Let’s have a look at all the aspects of GST Audit that you should know.
GST Audit is a process of examining the taxpayer’s records and check if he is complying with the GST rules and paying all his tax dues correctly. The taxpayer himself can perform this GST audit, or he can hire GST authorised personnel for this purpose. The taxpayer can perform a GST audit if his annual turnover is over Rs. 2 crores. He further needs to submit the audited returns with complete details of his reconciliation statements and audited accounts. However, the GST audit conducted by the Tax Authorities is generally performed by a tax commissioner. The taxpayer can be liable to attend a particular review that is to be done by a registered Chartered Accountant appointed by the commissioner as per the clauses of the GST rules.
What are the Different Types of GST Assessments
There are five major types of GST assessments. Keep reading on to know more about them.
- Self-Assessment – This kind of assessment is performed by the taxpayer to provide taxes rates for all the relevant tax durations
- Provisional Assessment – When a taxpayer is unable to perform his GST audit, he or she can appoint GST consultants in India who will calculate their tax liabilities. He can further allow the taxpayer to pay all his tax dues according to the details submitted by him.
- Scrutiny Assessment – This is a kind of valuation that is carried out by an authorised GST officer. His primary role is to identify discrepancies, if any, and question the taxpayer regarding it.
- Summary Assessment – This assessment is performed by the assessing offer; in case he believes that further delay can adversely impact the revenue. However, to conduct this kind of evaluation, it is imperative to take approval from the additional joint commissioner.
- Best Judgement Assessment – There are two situations in which this type of assessment is performed. First is when a registered taxpayer who is liable to pay taxes but fail to do so, even after receiving legal notice regarding it. In such a case, GST consultants in India will assess his tax liabilities according to the available records. This assessment is also done when a taxpayer fails to register himself for the reasons best known to him. It also makes him liable to serve an explanation for the primary reason behind this.
GST regulation also offers a provision wherein a taxpayer can ask for clarifications from an authorised GST officer on any tax-related matter before beginning the legal procedure. It is a recommended step to cut short the necessary expensive litigation procedures.