GST Audit for Year 2026 | FY 2025-26 | AY 2026-27

If you are searching for a top CA firm for GST audit, we can help you with professional, reliable, and timely GST audit services for FY 2025-26 and beyond. Our team is committed to supporting businesses with practical compliance solutions, detailed verification, and strong advisory support.

Whether you need a one-time GST audit, periodic GST reconciliation, pre-assessment review, or notice support, our firm can assist with a structured approach that protects your compliance position and improves internal tax discipline.

GST Audit

Meaning of Audit is defined under section 2(13) of CGST Act 2017. Government introduced from GSTR9C for conducting GST Audit. For GST Registered persons whose turnover during the year exceed two crore for them GST Audit Applicable. As per explanation of Section 35(5) of CGST Act 2017 GST Audit applicable. GST Act defined GST Audit as examination of GST Returns ,records and other documents. GST audit purpose is to do Verification of GST paid, return filed , turnover disclosed and refund claimed.

Aggregate Turnover = All taxable supplies + exempt supplies + export of goods or services + inter or Intra state supplies of person under one PAN. ( Excludes central tax, State tax, Union territory tax, integrated tax and cess.( Exempt supply includes nil rated supplies , specific supplies by notification non taxable etc. )exempt supply under GST is a broad term which includes nil rate supplies, non-taxable supplies and specific supplies which are notified as exempt from tax.

Four Types of GST Audits

The GST legal framework recognizes four primary types of audits and official scrutinies:

Audit Type	Governing Provision	Conducted By	Primary Objective
1. Departmental Audit	Section 65	GST Officers (Commissioner or authorized team)	Compliance check of books and records
2. Special Audit	Section 66	Nominated Chartered Accountant / Cost Accountant	Complex scrutiny on officer’s direction
3. Scrutiny of Returns	Section 61	Proper Tax Officer	Discrepancy checking in filed returns
4. Enforcement / DGGI Audit	Section 67 & DGGI	Directorate General of GST Intelligence / Anti-Evasion	Investigation into tax evasion or fraud

What is GSTR-9 and GSTR-9C in GST Audit?

Feature	GSTR-9 (Annual Return)	GSTR-9C (Reconciliation Statement)
Purpose	Consolidated summary of all monthly/quarterly GST returns filed during the financial year.	Analytical reconciliation statement matching GSTR-9 figures with Audited Financial Statements.
Applicability	turnover > 2 Cr	turnover > 5 Cr
Filing Nature	Annual summary declaration	Analytical reconciliation
Due Date	31 December	31 December
Late Fees	Rs. 200 per day of delay, subject to a maximum cap of an amount at 0.50% (0.25% + 0.25%) of itsd turnover.	No specific provision, hence, subject to a general penalty of ₹25,000.
Attachments	No No attachments are required	Submit Audited Profit & Loss and BS

Why GST Audit Is Important in FY 2025-26

The compliance environment in FY 2025-26 continues to be highly data-driven. GST departments increasingly rely on return analytics, mismatch reports, e-invoicing data, e-way bill data, and system-based checks to identify possible non-compliance. This makes it important for businesses to maintain clean records and conduct periodic review before any departmental scrutiny begins.

A well-conducted GST audit can help businesses in several ways:

• Identify mismatches between books and GST returns.
• Check whether input tax credit has been claimed correctly.
• Verify whether invoices, place of supply, and rate classification are accurate.
• Review whether returns are filed within due dates.
• Detect issues related to exempt, nil-rated, and non-GST supplies.
• Reduce the risk of interest, penalty, and notice-based exposure.
• Improve internal controls and compliance discipline.

For businesses with large turnover, multiple branches, mixed supplies, or heavy ITC claims, GST audit becomes even more important. We are A N Bhutada & CO professional CA firm for GST audit can add real value by ensuring the compliance process is systematic and defensible.

GST Audit FY 2025-26: Common Risk Areas

During GST audit for FY 2025-26, certain issues often come up repeatedly. These are the areas where businesses most commonly face mistakes or exposure.

1. ITC mismatches

Input tax credit discrepancies between purchase registers, vendor invoices, and GSTR-2B are one of the most common audit observations. Incorrect timing of credit, missing invoices, blocked credits, or ineligible credits may create future demand exposure.

2. GSTR reconciliation gaps

Differences between GSTR-1, GSTR-3B, and financial statements can arise due to timing differences, manual errors, credit note treatment, or incorrect reporting. These need to be reviewed carefully.

3. Wrong tax classification

Goods or services may sometimes be reported under the wrong GST rate or wrong HSN/SAC code. Even a small classification error can lead to short payment or excess payment issues.

4. Reverse charge issues

Businesses often miss reverse charge obligations on certain inward supplies. A proper GST audit checks whether such transactions are identified and paid correctly.

5. Export and refund issues

Exports, LUT filings, zero-rated supplies, and refund claims require strong documentation. Missing evidence or mismatch in records can delay refunds or trigger scrutiny.

6. Place of supply and inter-state issues

In service transactions especially, place of supply provisions must be evaluated carefully. Errors here may lead to incorrect CGST/SGST/IGST treatment.

GST Audit Turnover Limit

As per GST Act Every registered person who turnover for period 1.07.2017 to 31.03.2018 exceed two crore required to get GST audit compliance. Per need to obtain GST audit certification from the Chartered Accountant or Cost Accountant. Aggregate turnover for GST Audit is already defined in above para. Its important to note that aggregate turnover includes supplies of nil rated , exempt supplies , export of goods or services , supplies to SEZ units. But this turnover excludes Central, State , Union taxes. GST was in force from 01.07.2017 , suitable explanation in required from government for which period should be take for calculation turnover for financial year 20171-18.

GST Audit Check List

Following shall be documents , ledger Check list for GST Audit

• Ledger of GST Outward Supply
• Ledger of GST inward supply
• RCM Ledger
• GST Return filed GSTR3B, GSTR 1,GSTR2
• GST Input tax credit ledger
• Working of Trans credit & Trans returns
• Financial statement of Company
• Leger for reimbursement from employees etc.
• Capital goods addition details
• GST refund applied & received
• Statement of GST payment via challan

GST Audit Process

Where turnover for financial year cross Rs. 2 crore such registered person need to get involved in GST Audit Process. First company need to identify turnover and audit applicability. GST audit certification need to be done by practicing Chartered Accountant or Cost Accountant. GST Audit Process may involve verification of GST returns filed , GST cash and electronic ledger, input tax validity , GST Refund applied , received, reconciliation of different GST ledgers. Validate correctness of GST liability declared , CGST/SGST/IGST cross utilization etc. From company to company different GST Audit process can be followed to validate required information.

Our GST Audit Process

We follow a clear and methodical process to ensure quality and consistency in every engagement:

1. Initial discussion and understanding of business operations.
2. Collection of GST returns, books, reconciliations, and supporting records.
3. Preliminary review of filings and transaction flow.
4. Detailed verification of outward and inward supplies.
5. Reconciliation of tax liability, ITC, and ledger balances.
6. Identification of errors, gaps, and exposure points.
7. Discussion of observations with management.
8. Final reporting, corrective action support, and documentation closure.

Penalty Under GST Audit

As per the penalty provisions of GSTR 9C audit return form, the taxpayer has to pay Rs. 200 per day as a penalty in which Rs. 100 consist of SGST and Rs. 100 for CGST. Also, it is to be noted that the total penalty cannot exceed 0.25% of the total turnover on which the said penalty is being levied.

Types of GST Audits

Why Choose US for GST Audit?

Choosing the right CA firm for GST audit matters because GST is not only a filing compliance but also a risk management function. The right audit partner helps your business avoid surprises, maintain records properly, and respond effectively when questions arise.

We are positioned as a top CA firm for GST audit because we bring together technical knowledge, practical experience, and a business-oriented approach. Our team understands the compliance pressure on businesses and works in a structured manner to make the audit process smooth and professional.

What makes our GST audit service different:

• Experienced CA-led review.
• Detailed reconciliation-based audit approach.
• Business-friendly communication.
• Practical advice instead of only technical observations.
• Confidential handling of records and data.
• Timely support for notices and departmental queries.
• Industry-specific understanding of GST compliance risks.
• We believe a GST audit should not feel like a burden. It should become a tool for strengthening internal systems and improving tax accuracy.

What We Offer

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FAQ- GST Audit

Does GST audit need to conduct by Chartered Accountant/Cost Accountant?

Yes. As per GST law, GST audit need to conducted by Chartered Accountant/Cost Accountant Where turnover exceeds Rs.200 lac.

Does stock transfers included under aggregate turnover ?

Yes. Section 2(6) of CGST/ SGST Act defines aggregate turnover to include ‘inter-state supplies of person having same PAN.

ABC Ltd supplies only exempted goods and there turnover is 3.5 Cr , does GST audit applicable ?

Yes. aggregate turnover’ includes even exempted supplies.

Can GST Audit be revised ?

No. GST Law have no provision for revising GST audit form GSTR 9C.

What contents in GST audit Form GSTR 9C?

Form GSTR 9C consists of 2 parts.
Part-A – Reconciliation statement
Part B is Certificate by CA/ CMA.

ABC Ltd sold Machine ( Capital Goods ) , does this need to be reflected in GSTR 9C?

Yes, GST is applicable on supply. Also company need to mention ITC Reversal as per section 18(6) of CGST Act.

For disallowance of Input Tax credit by auditor arises, should the same be paid by cash or ITC ?

GSTR 9C provides for auditors recommendation on additional liability wherein liability arising on account of non-reconciliation of ITC has to be remitted in cash. Whether cash will include payment through ITC as well is yet to be clarified by the Government.

In Which City You Provide GST Audit Services ?

We are Chartered Accountant firm Provide GST Audit Services in Pune, Mumbai , Nashik , Banglore , Thane.

Can discrepancies in GSTR-9C lead to a GST demand?

Yes. Discrepancies between GSTR-9C figures and the audited financial statements, or between GSTR-9C and the monthly returns, are reviewed by the department and may result in a scrutiny notice under Section 61, followed by an assessment under Section 73 (for non-fraudulent cases) or Section 74 (for fraudulent cases). Section 73 demands carry interest at 18% per annum and a penalty of 10% of the tax demand. Section 74 demands carry interest at 24% and a penalty of up to 100% of the demand. Accurate GSTR-9C filing significantly reduces this exposure.

Why should I hire a top CA firm for GST audit compliance?

Hiring a top CA firm for GST audit compliance ensures that your financial records, GSTR-1, GSTR-3B, and GSTR-9/9C are fully aligned with current statutory provisions. Experienced Chartered Accountants identify tax exposure early, prevent demand notices under Section 73/74, and handle departmental interactions seamlessly.

What makes us best CA firm for GST audit and advisory services?

A N Bhutada & CO., best CA firm for GST audit combines deep expertise in GST audit working, automated data reconciliation capabilities, and proactive risk detection.

What is the difference between routine GST return filing and a GST audit?

Regular return filing (GSTR-1 and GSTR-3B) involves monthly or quarterly self-declarations. A GST audit is an exhaustive review of books of accounts, tax invoices, input credit eligibility, and financial statements. Partnering with the best CA firm for GST audit ensures your filings withstand intense scrutiny by revenue officers.

Can the GST department order a Special Audit under Section 66?

Yes, if a tax officer suspects incorrect valuation or abnormal Input Tax Credit claims, they can direct a Special Audit under Section 66. The best GST consultant can help prepare your defense and navigate external auditor queries smoothly.

What is the GST audit’s limit?

Businesses exceeding a turnover of Rs. 2 crore must file GSTR-9C (self-certified). Special audits can be conducted for any business at the discretion of tax authorities.

Compare Your Options

Audit Type	Mandatory For	Due Date	Statutory Compliances	Mode of Audit submission	Who can do Audit	Audit Section
Tax Audit	Turnover > Rs. 200 / 50 lac	30 Sept 2019	Yes	Online	CA	44 AB
GST Audit	Turnover > Rs. 200 Lac	30 June 2019	Yes	Online	CA/CMA	35(5)
Statutory Audit	For Companies	30 Sept 2019	Yes	Online	CA	Section 133
Trust Audit	For Trust	31 July 2019	Yes	Online & Offline	CA	Section 11 & 12
Society Audit	For Society	31 July 2019	Yes	Online & Offline	CA & Other	Section 81