WHAT IS THE TURNOVER LIMIT FOR GST AUDIT FOR THE YEAR 19-20. GST AUDIT IS DONE FOR A FIRM ON THE BASIS OF TURNOVER WITHIN A STATE OR THE COMPLETE TURNOVER OF THE FIRM DURING A FINANCIAL YEAR IS CONSIDERED . EG: XYZ HAS TURNOVER OF RS 20CR, OF WHICH 17 CR RELATES TO RAJASTHAN AND 3 CR RELATES TO GUJARAT, IN THIS CASE GST AUDIT FOR GUJARAT IS NEEDED OR NOT?

Reply—As per Notification No. 79/2020-Central Tax dated 15.10.2020, In Rule 80 of CGST Rules, in sub-rule (3), for the proviso , the following proviso shall be substituted, namely: -

“Provided that for the financial year 2018-2019 and 2019-2020, every registered person whose aggregate turnover exceeds five crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C for the said financial year, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.”

Therefore, threshold limit for GST audit is Rs. 5 crore for financial year 2019-20.

As per section 2(6) “aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

As stated in query, a person is having two GST registration with same PAN, and aggregate turnover is more than Rs. 5 crore, taxpayer has to file separate forms GSTR-9 and GSTR-9C for all the registrations separately.