Tax authorities step up heat on erring businesses with GST Audit

Goods and Services Tax (GST) authorities have started audit of businesses for FY18, the year of the indirect tax reform, indicating that erring assessees will now be held accountable for lapses in tax payment and record keeping. GST audits are being initiated as part of the government’s drive to improve compliance and step up revenue collections amid an economic slowdown.

Central GST authorities have started issuing audit notices to businesses posing a revenue leakage risk, a person aware of the development said on condition of anonymity. All businesses with more than Rs.2 crore annual sales are expected to get their books audited for GST compliance and the authorities order a separate compliance audit only in specific cases where they suspect lapses. 

GST is a technology-driven tax and its return filing system raises red flags wherever it detects mismatches in transactions reported by businesses in the value chain, allowing officials to profile the businesses based on their compliance track record.

The GST Council had extended the due date for filing annual returns and the audit reports for FY18 several times. As per the latest deadline, they have time till 31 January to file their audit reports.#casansaar (Source - PTI, LiveMint)