How to calculate Turnover for GST Audit

How to take Turnover for GST Audit

Video Tutorial by CA Satbir Singh in Hindi

Turnover of my business from 01.04.2017 to 30.06.201 7 is Rs 30 Lakh and from 01.07.2017 to 31.03.2018 Rs 1 core 80 Lakh . Am I liable for GST Audit ?

As per Section 35(5) of CGST Act 2017

Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed:

As per Rule 80(3) of CGST Rules 2017

Every registered person whose aggregate turnover during a financial year exceeds two crore 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.

Section 2(112) of CGST Act 2017 :- 

“turnover in State” or “turnover in Union territory” 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) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess;

Commentary 

• Aggregate turnover is PAN based for all India Level.
• Turnover used in Section 35(5) could be interpreted as aggregate turnover
• For Financial year 2017-18 , GST was implemented w.e.f 01.07.2017. (Thus GST period is 9 months). But Section 35(5) uses “Turnover” of  Financial year , hence  for computing Rs 2 Core Audit Limit , Turnover of whole financial year has to be taken (including from 01.04.2017 to 30.06.2017) so that there is no default due to non compliance .

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