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Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess the compliance with the provisions of GST.

As per the CGST Act, Section 35 (5), the registered taxpayers of India whose aggregate turnover is over ₹ 2 crores in a financial year (FY) to get their accounts book audited by an authorised Cost Accountant or a Chartered Accountant. The taxpayer registered under GST must submit a copy of the GST audit report, financial statements, and reconciliation statement through Form GSTR 9C. The concerned taxpayer must submit the reports to the tax department once in a financial year.

The GST audit is about verifying returns, records, and other related documents maintained by a person registered under GST. The need for GST Audit is to ensure the correctness of the information and check whether they agree with the GST Act, 2017 by an authorised person of the Tax authority.

Under the GST scheme launched by the Government of India in 2017. It is a taxation regime where the taxpayer can assess their tax liability, file an Income Tax Return (ITR), and pay the tax. Therefore, to check that the taxpayer has assessed it correctly, an audit under GST is required. Among the various ways to ensure GST practice, an audit is one of the ways to check its correctness.

There are three different types of audits under GST. These audits and their specifications are mentioned below:-

GST Audit Based on Turnover: This type of audit is performed by the Cost Accountant or the Chartered Accountant appointed/hired by the taxpayer. According to the CGST Act, this audit is conducted when the turnover exceeds the limit of ₹ 2 crores, and the taxpayer needs to get audits for their records and accounts.
Normal/General GST Audit: This GST audit is conducted by the CGST/SGST Commissioner or any other officer accredited by them. It is conducted on Commissioner’s order with 15 days prior notice to the taxpayer.
Special GST Audit: This audit is conducted by a Cost Accountant or a Chartered Accountant accredited by the Commissioner. It is conducted on the order of the Assistant or Deputy Commissioner with the prior approval of the Commissioner.

As per the Audit definition under section 2(13) of the Central Goods and Services Tax (CGST) Act, the GST audit has the following objectives:-

An audit is scrutiny of returns, records, and other similar documents.
The returns, records, and other documents should be issued or maintained under GST or more laws.
Declared Turnover
Paid Amount of Taxes
Claimed Refund
Availed Input Tax Credit
The inspection also takes place to assess the auditee's compliance with the laws of the GST Act and its rules.


The objective of the audit under GST is to ensure that the declared turnover, claimed refunds, input tax credit, and paid taxes are correct. The verification is done in compliance with the GST Act. Additionally, GST Audit ensures that the intents comply with GST Rules.