AUDIT :
According to Section 2(13) of the GST Act, 2017, ‘audit’ means detailed examination of records, returns and other documents maintained or furnished by the taxable person under this Act or Rules made thereunder or under any other law for the time being in force to verify, inter alia, the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or rules made thereunder. Accordingly, ‘audit’ implies –
(a) Detailed examination of records, returns and other documents –
(i) maintained/furnished by a taxable person,
(ii) under GST law/any other law or rules;
(b) Verification of correctness of –
(i) turnover declared;
(ii) taxes paid;
(iii) refund claimed;
(iv) input tax credit availed; and
(v) assessment of compliances with provisions of GST law and rules.
GST audit is not only reconciliation of tax liability & payment, it also signifies compliance of the provisions of the GST act, law and provisions etc.