“Before today’s 16th meeting of the GST Council, the Government has released the format of the mandatory GST audit report. The GST Law mandates, mandatory audit to be undertaken each year by an independent chartered accountant or a company secretary. The main purpose of the audit appears to be detailed reconciliation of the GST returns with the audited financial statements. The format is fairly long with 12 different annexures reconciling each and every transaction as reported in the GST return with the financials. One question that is unanswered is that whether the Government is expecting reconciliation with the state-wise audited financial statements? As a matter of practice no company prepares state-wise audited financial statements, and hence this could be a new compliance challenge.”
“Before today’s 16th meeting of the GST Council, the Government has released the format of the mandatory GST audit report. The GST Law mandates, mandatory audit to be undertaken each year by an independent chartered accountant or a company secretary. The main purpose of the audit appears to be detailed reconciliation of the GST returns with the audited financial statements. The format is fairly long with 12 different annexures reconciling each and every transaction as reported in the GST return with the financials. One question that is unanswered is that whether the Government is expecting reconciliation with the state-wise audited financial statements? As a matter of practice no company prepares state-wise audited financial statements, and hence this could be a new compliance challenge.”