CBIC clarified on turnover for GST audit:
In a press release yeaterday, CBIC clarified that the turnover for GST audit will be considered from 1st July 2017 to 31st March 2018. As per GST provisions every taxpayer having a turnover of more than Rs. 2crore is liable for GST audit. This turnover is on FY basis. But GST was made applicable from July 2017. It is confusion whether turnover shall be taken from April or July.
Most of the experts said that it should be taken from July. But recently GSTIN said that turnover is relevant from April. Now CBIC clarified this point via their press release. 12 points clarified in this press release yesterday. You can read them all here in this article.
This clarification is only for the first year. Next year onwards turnover of FY is relevant.
e.g. 1 If the turnover from 1st April 2017 to 30th June 2017 is Rs. 50lac. Turnover from 1 July 2017 to 31st March 2018 is 1.6 Cr. The taxpayer is not liable for audit in GST. They dont need to fill the reconciliation statement in form 9C.
e.g. 2 If we take the same example for next year. Turnover from 1st April 2018 to 31st March 2019 is Rs. 2.10 Cr. Now they are liable for GST audit.
e.g. 3 turnover will include all turnover. Even exempted and non GST turnover is relevant. Say if turnover of sale of machines is Rs. 50 lac. Turnover of agriculture produce is 1.4 Cr. Rent of residential house is Rs. 50000 and Sale of Petrol/diesel is Rs 1 cr. The taxpayer is liable for GST audit.
e.g. 4Turnover of all entities in one PAN in aggregate is relevant.
Thus only for the first year, we need to consider turnover from July 1st.
