I want just to know whether commission agent who sales or purchase good of farmer in mandi yard are liable to GST audit as in tax audit report their actual turnover below 2 crore but in GST return their turnover cross above 2 crore?
As we all know that according to section 35(5) of CGST Act, 2017, every registered person whose turnover during a financial year exceeds the prescribed limit (i.e. Rs. 2 crore) shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 (Form GSTR- 9C).
Therefore, GST audit will become mandatory in above case and if department will ask for such turnover difference it can be explained.