Turnover Definition Under Gst Audit

Every business entity engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed rs 40 lakhs in a financial year is required to be registered under the gst act.

Turnover definition under gst audit. Audit under gst involves examination of records returns and other documents maintained by a gst registered person. 6 aggregate turnover means the aggregate value of all taxable supplies excluding the value of inward supplies on which tax is payable by a person on reverse charge basis exempt supplies exports of goods or services or both and inter state supplies of persons having the same permanent account number to be computed on all india basis but excludes central tax state tax union territory tax integrated tax and cess. Turnover in simple terms is the total volume of business. Under gst annual return is to be furnished in gstr 9 recently notified on september 4 2018.

However the central sales tax act 1956 defined the term turnover as. Turnover meaning under gst audit. Definition of audit under gst audit under gst means an examination of returns records and other documents maintained or furnished by the registered person under the gst act. For supply of services aggregate turnover of rs 20 lakhs 10 lakhs in special category states is the limit for registration.

Everyone is aware about applicability of gst audit as per rule 80 3 every registered person whose aggregate turnover during a financial year exceeds 2 crores rupees shall get his accounts audited as specified under sub section 5 of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement duly certified in form gstr 9c electronically through the common portal either directly or through a facilitation centre notified by the commissioner. Turnover means the gross amount of revenue recognised in the profit and loss account from the sale supply or distribution of goods or on account of services rendered or both by a company during a financial year the gst law also do not define the term turnover. The government on thursday notified the gstr 9c form for annual gst audit under which every taxpayer above rs 2 crore turnover in a financial year would need to fill up a reconciliation statement and also obtain a certification of audit. As defined in the previous section aggregate turnover is calculated on all india basis having the same pan.

Gst audit is carried out to verify the correctness of the turnover taxes paid itc refund claimed and itc availed and to assess the compliance with the provision of the gst act. It means total value of all taxable supplies and exempt supplies including export of goods or services and inter state supplies of goods or services. 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. A person is required to get his accounts audited u s 44ab if turnover of business exceeds rs 100 lakhs or in case of profession gross receipts exceed rs 50 lakhs.

Hence each registration acquired under the same pan would also be liable for gst audit in this case. However the turnover has been defined under the gst law. Should it be gross sales or net sales. Say a registered person is liable to get the accounts audited under section 35 of the gst act.