what is audit

An audit is a formal examination and verification of an organization's financial and accounting

records and reports. The purpose of an audit is to ensure that the organization's financial
statements are accurate and comply with generally accepted accounting principles (GAAP) or
International Financial Reporting Standards (IFRS). Audits are typically conducted by independent
auditors, who are responsible for providing an opinion on the fairness of the financial statements
and the organization's compliance with applicable laws and regulations.

describe types of audits under gst

Under the goods and services tax (GST) system in India, there are several types of audits that
businesses may be subject to. Some of the main types of audits include:

1. Self-assessment: Businesses are required to self-assess the tax they owe and submit regular
returns to the GST authorities.
2. Regular audit: The GST authorities have the power to conduct regular audits of businesses to
ensure compliance with the GST laws.
3. Special audit: The GST authorities may conduct a special audit if they have reason to believe that
a business has not been compliant with the GST laws.
4. Scrutiny: The GST authorities may scrutinize a business's records and returns to ensure
compliance with the GST laws.
5. Investigation: The GST authorities may investigate a business if there are allegations of tax
evasion or other GST-related criminal activities.
6. Compliance Audit: Auditing of the records and compliance of the GST law by a Chartered
Accountant appointed by the registered person himself.

These types of audit are used by the tax authorities to ensure compliance with the GST laws and
to identify and correct any errors or omissions in a business's GST returns.

explain the provisions of demand under gst

Under the goods and services tax (GST) system in India, there are certain provisions related to the
demand of taxes. Some of the main provisions include:

1. Raising of Demands: The GST authorities have the power to raise a demand for unpaid taxes, if it
is found that a business has not paid the correct amount of tax.
2. Time Limit for Raising Demands: A GST demand can be raised within 5 years from the date of the
tax became payable.
3. Show Cause Notice: Before raising a demand, the GST authorities are required to issue a show
cause notice to the business, giving the business an opportunity to explain why the demand
should not be raised.
4. Interest and Penalty: If a business fails to pay the taxes demanded, it will attract interest and
penalty. Interest on unpaid tax is charged at 18% p.a and penalty ranges from 10% to 100% of
the tax unpaid or short paid.
5. Recovery of Demands: If a business fails to pay the taxes demanded, the GST authorities have the
power to recover the unpaid taxes by various means such as arrest, attachment of bank account
and property.
6. Appeals and Review: If a business is not satisfied with the GST demand, it has the right to appeal
against the demand to the higher authorities and also have the provision of review of order
passed.

These provisions are in place to ensure that businesses pay the correct amount of taxes and to
provide a mechanism for the recovery of unpaid taxes.

what is AAR
Authority for Advance Ruling (AAR) is an important mechanism under the goods and services tax
(GST) system in India. The Authority for Advance Ruling (AAR) is a quasi-judicial body that was
established to provide legal certainty to taxpayers in relation to specific transactions. It helps
taxpayers to obtain an advance ruling on various issues related to GST, such as classification of
goods and services, eligibility for input tax credit, and applicability of GST exemptions and
concessions. The ruling is binding on the tax authorities and the taxpayer who has sought the
ruling and also on the person whose case is covered by the ruling.

AAR is established in each state of India and also at Centre level, allowing taxpayers to approach
the AAR in the state where they are registered. The ruling provided by AAR is binding on the
applicant and also on the tax authorities. The ruling provided by AAR is a useful tool for
businesses as it provides legal certainty in relation to specific transactions, and helps businesses
to plan their GST compliance accordingly.

procedure of advance ruling

The procedure for obtaining an advance ruling under the goods and services tax (GST) system in
India is as follows:

1. Application: An application for an advance ruling must be made in the prescribed form (FORM
GST ARA-01) and filed with the Authority for Advance Ruling (AAR) in the state where the
applicant is registered. The application should include all relevant details and documents
pertaining to the transaction in question.
2. Fees: A fee of Rs. 5,000 must be paid at the time of filing the application. The fee can be paid
either by cash, cheque, demand draft, or electronic mode.
3. Scrutiny: The AAR will scrutinize the application to ensure that it is complete and in order. The
AAR may also call for additional information or documents if required.
4. Hearing: If the AAR decides to proceed with the application, it will give notice to the applicant
and the concerned tax authority, and fix a date for hearing.
5. Ruling: After considering the evidence and arguments presented by the applicant and the tax
authorities, the AAR will issue a ruling on the matter. The ruling will be binding on the applicant
and the tax authorities.
6. Time Limit: AAR is expected to deliver the ruling within 90 days from the date of receipt of
complete application.

It's worth noting that the ruling can be appealed, If any of the parties (Applicant, GST Officer or
the person whose case is covered by the ruling) is not satisfied with the ruling, it has the right to
appeal to the Appellate Authority for Advance Ruling (AAAR) within 30 days.
 explain various types of returns prescribed under GST act
The goods and services tax (GST) system in India requires businesses to file several types of
returns on a regular basis. Some of the main types of returns that businesses may be required to
file under GST include:

1. GSTR-1: This is a monthly return that is filed by businesses that are required to pay GST on a
regular basis. It contains details of all the sales made by the business during the month, including
the GST paid on each sale.
2. GSTR-2: This is a monthly return that is filed by businesses that are required to claim GST input
credit. It contains details of all the purchases made by the business during the month, including
the GST paid on each purchase.
3. GSTR-3: This is a monthly return that is automatically generated based on the information
provided in GSTR-1 and GSTR-2. It contains a summary of the sales and purchases made by the
business during the month, including the GST paid on each.
4. GSTR-4: This is a quarterly return that is filed by businesses that are registered under the GST
composition scheme. It contains details of the sales and purchases made by the business during
the quarter, along with the GST paid on each.
5. GSTR-5: This is a monthly return that is filed by non-resident taxable persons (NRTP) who are
registered under GST.
6. GSTR-6: This is a monthly return that is filed by Input Service Distributors (ISD) who are registered
under GST
7. GSTR-7: This is a monthly return that is filed by businesses that are required to deduct TDS (Tax
Deducted at Source) under GST.
8. GSTR-8: This is a monthly return that is filed by e-commerce operators who are required to
collect TCS (Tax Collected at Source) under GST.
9. GSTR-9: This is an annual return that is filed by all registered businesses under GST. It contains
details of all sales and purchases made during the financial year, along with the GST paid on
each.
10. GSTR-9C: This is a reconciliation statement, it is required to be filed by the business whose
turnover in a financial year exceeds Rs 2 crore, along with GSTR-9.

These returns are used by the GST authorities to track the GST paid and claimed by businesses, to
ensure compliance with GST laws, and to facilitate the recovery of unpaid taxes.

role of gst practioner

A GST practitioner is a professional who is authorized by the Goods and Services Tax Network
(GSTN) to assist taxpayers with GST-related matters. The role of a GST practitioner includes:

1. Assisting taxpayers with GST registration, returns filing, and other compliance matters.
2. Representing taxpayers before the GST authorities, such as the GST officer and the appellate
authorities.
3. Advising taxpayers on GST laws, rules, and procedures and helping them to interpret the law and
its implications on their business.
4. Keeping themselves updated with the latest changes in GST laws and regulations.
5. Filing GST returns, Challans and other related documents on behalf of the taxpayers.
6. Answering to notices and summons issued by GST authorities on behalf of the taxpayers.
7. Helping taxpayers in obtaining Advance Rulings, and also represent them in the Appellate
Authority for Advance Ruling (AAAR).
8. Helping taxpayers in identifying and availing GST related tax credits, exemptions and
concessions.

In order to become a GST practitioner, one must have passed a certificate course in GST laws and
procedures and must have cleared the GST practitioner examination conducted by the GST
authorities. GST practitioner must also have a valid registration with the GSTN and maintain a
record of continuing professional education.

It's worth noting that, GST practitioner can't represent a taxpayer before the GST authorities
unless the taxpayer authorizes him in writing to do so, also GST practitioner can't sign and verify
any document on behalf of a taxpayer unless specifically authorized in writing by the taxpayer.

appeal against appeleate tribunal

Under the goods and services tax (GST) system in India, taxpayers have the right to appeal
against decisions of the Appellate Tribunal (AT) to the higher courts.

1. Appeal to High Court: An appeal can be filed against the order of the Appellate Tribunal to the
High Court within 120 days of the date on which the order was passed. The appeal must be filed
in the form of a civil writ petition and must include all relevant documents and grounds for the
appeal.
2. Appeal to Supreme Court: After the decision from high court, If the taxpayer is still not satisfied
with the order passed by the High Court, they can file an appeal in the Supreme Court of India
within 90 days of the date on which the order of the High Court was passed. The appeal must be
filed in the form of a special leave petition and must include all relevant documents and grounds
for the appeal.

It's worth noting that in both cases, the appeal process involves a detailed legal procedure and
it's recommended that taxpayers seek legal advice before filing an appeal.

It is also important to note that, there is a time limit for filing appeals and if the time limit expires,
the appellant will lose the right to appeal and the order of the lower court or authority will
become final.

eligibility against gst practitioner

To be eligible to become a GST practitioner under the goods and services tax (GST) system in
India, an individual must meet certain criteria:

1. Must be a citizen of India.

2. Must have passed a certificate course in GST laws and procedures conducted by the GSTN or by
any other institution approved by the GST Council.
3. Must have cleared an examination in GST laws and procedures conducted by the GSTN or by any
other institution approved by the GST Council.
4. Must not have been convicted of any offence under the GST laws or under any other laws.
5. Must not have been prohibited by the GST Council from practicing as a GST practitioner.
6. Must have a valid registration with the GSTN, and have to maintain a record of continuing
professional education (CPE) hours.

It's important for GST practitioners to keep themselves updated with the latest GST laws and
regulations, as well as to maintain professional conduct in their practice. GST practitioner also
required to disclose any direct or indirect interest that might create a conflict of interest in
relation to their clients.

registration under tcs

Tax Collected at Source (TCS) is a mechanism under the goods and services tax (GST) system in
India that requires e-commerce operators to collect a certain percentage of tax from their
sellers/vendors and deposit it with the government.

To be eligible for TCS under GST, e-commerce operator should have a valid registration with GST
and must be liable to collect TCS as per the provisions of Section 52 of CGST Act. E-commerce
operator must mandatorily register under TCS by filing an application in Form GST REG-07. They
have to furnish PAN, GSTIN, Bank account details, among others.

Once an e-commerce operator is registered under TCS, they are required to collect TCS at the
rate of 1% (0.5% CGST and 0.5% SGST) on the net value of taxable supplies made through their
platform by their sellers/vendors. The TCS collected must be deposited with the government
within 10 days of the end of the month in which it was collected.

E-commerce operator must also file a monthly return in Form GSTR-8 detailing the TCS collected,
deposited and the liability discharged during the month. Also, They have to furnish information
of transactions on their platform and the TCS collected thereon in their GSTR-1.

rate and payment of tcs

The rate of Tax Collected at Source (TCS) under the goods and services tax (GST) system in India
is currently 1% of the net value of taxable supplies made through an e-commerce platform. This
is broken down as 0.5% Central GST (CGST) and 0.5% State GST (SGST). It is levied on the e-
commerce operator who is responsible for collecting the TCS from the sellers/vendors who are
using the platform to make their sales.

The e-commerce operator must collect the TCS at the time of making the payment to the
sellers/vendors for the supplies made through their platform. The TCS collected must be
deposited with the government within 10 days of the end of the month in which it was collected.

The e-commerce operator is also required to file a monthly return in Form GSTR-8 detailing the
TCS collected, deposited and the liability discharged during the month. They also have to furnish
information of transactions on their platform and the TCS collected thereon in their GSTR-1.

It is important to note that, TCS will be available as credit to the sellers/vendors in their electronic
credit ledger. Also if an e-commerce operator fails to collect TCS, they will be held liable for the
same and may be subject to penalties and interest.
 can you elaborate more
Sure, Tax Collected at Source (TCS) is a mechanism under the GST system that places the
responsibility of collecting a certain percentage of tax from the sellers/vendors on the e-
commerce operator who is providing a platform for the supply of goods and services. The TCS
collected is required to be deposited with the government within a specified time frame.

The rate of TCS is currently 1% of the net value of taxable supplies made through an e-commerce
platform, which is broken down as 0.5% Central GST (CGST) and 0.5% State GST (SGST). It's
important to note that TCS is not an additional tax but rather a mechanism to ensure compliance
and accountability.

The e-commerce operator must collect TCS at the time of making the payment to the
sellers/vendors for the supplies made through their platform, This TCS collected must be
deposited with the government within 10 days of the end of the month in which it was collected
and the e-commerce operator must file a monthly return in Form GSTR-8 detailing the TCS
collected, deposited and the liability discharged during the month.

The TCS collected by the e-commerce operator will be available as credit to the sellers/vendors in
their electronic credit ledger, which can be used to offset any GST liability they have.

It is worth noting that, failure to collect TCS or non-compliance with TCS rules and procedures
can result in penalties and interest for the e-commerce operator and also the sellers/vendors may
not be able to avail the credit of TCS.
explain various situations where refund can be claimed under GST
Under the goods and services tax (GST) system in India, there are several situations in which a
taxpayer may be eligible to claim a refund of GST paid. Some of the main situations where a
refund can be claimed include:

1. Export of goods or services: Taxpayers who export goods or services are eligible to claim a refund
of the GST paid on the goods or services exported, as exports are zero-rated under GST.
2. Input Tax Credit (ITC) accumulation: Taxpayers who have accumulated ITC due to inverted duty
structure, meaning where the GST rate on inputs is higher than the GST rate on the final product,
are eligible to claim a refund of the accumulated ITC.
3. Unutilized ITC: Taxpayers who have unutilized ITC at the end of a financial year are eligible to
claim a refund of the unutilized ITC.
4. Refund to international tourists: International tourists who leave India can claim a refund of GST
paid on goods purchased in India, if the goods are being exported out of India.
5. Refund for deemed exports: Taxpayers who supply goods to EOU (Export Oriented Unit) and SEZ
(Special Economic Zone) are eligible to claim a refund of GST paid, as deemed export supplies are
treated as zero-rated supplies.
6. Refund for difficult or impossible to obtain the required invoices: Taxpayers who are unable to
obtain the required invoices for availing ITC, are eligible to claim a refund of GST paid

These are some of the main situations where a taxpayer can claim a refund of GST paid, however,
it
 explain different offences under GST
Under the goods and services tax (GST) system in India, there are several offences that can be
committed by taxpayers, which may lead to penalties and other legal consequences. Some of the
main offences under GST include:

1. Non-compliance with GST registration: Not obtaining GST registration when required, or not
canceling registration when no longer required, or providing false information during registration
process.
2. Non-compliance with GST return filing: Failing to file GST returns within the specified time frame,
or providing false or incorrect information in the GST returns filed.
3. Non-payment or short payment of GST: Not paying the correct amount of GST due, or delaying
payment of GST.
4. Obstruction of GST authorities: Obstructing or hindering the GST authorities in the performance
of their duties, or failing to produce books of account and other documents when required.
5. Availment of fraudulent Input Tax Credit (ITC): Claiming ITC on the basis of false or fraudulently
obtained invoices or other documents.
6. Violation of restrictions on ITC: Claiming ITC on ineligible goods or services, or claiming ITC in
excess of the permissible limit.
7. Suppressing turnover: Suppressing or underreporting the turnover of the business to evade GST.
8. Violation of TCS or TDS provisions: Failing to collect TCS or TDS, or collecting but not depositing
with the government
9. Misuse of composition scheme: Misusing the composition scheme or availing composition

what are the penalties for these offences

Under the goods and services tax (GST) system in India, there are several penalties that can be
imposed for committing offences as outlined in the GST laws. Some of the main penalties for
offences under GST include:

1. Non-compliance with GST registration: Penalty of up to Rs. 25,000

2. Non-compliance with GST return filing: Penalty of up to Rs. 25,000 and/or a late fee of Rs. 100
per day (Rs. 50 per day for NIL return) for each day of delay.
3. Non-payment or short payment of GST: Penalty of up to 10% of the tax due
4. Obstruction of GST authorities: Penalty of up to Rs. 25,000
5. Availment of fraudulent Input Tax Credit (ITC): Penalty of up to 100% of the fraudulently availed
ITC, along with a penalty of Rs. 10,000 or an amount equivalent to the fraudulently availed credit,
whichever is higher
6. Violation of restrictions on ITC: Penalty of up to 100% of the ineligible ITC along with a penalty of
Rs. 10,000.
7. Suppressing turnover: Penalty of up to 10% of the suppressed turnover along with a penalty of
Rs. 25,000
8. Violation of TCS or TDS provisions: Penalty of 100% of the amount of tax not

explain various valuation rules in detail under GST

 The goods and services tax (GST) system in India includes a set of rules for determining the value
of goods and services for the purpose of determining the GST liability. These valuation rules are
outlined in Section 15 of the Central GST Act, 2017.

1. Transaction value method: Under this method, the value of goods and services is determined as
the transaction value, which is the price actually paid or payable for the goods or services,
including any additional consideration, less any discounts and deductions. The transaction value
is considered as the value of goods and services, if it is not considered as the transaction value
then other methods are used to determine the value.
2. Residual method: Under this method, the value of goods and services is determined by first
deducting the cost of goods and services, trade discounts, and other deductions from the
transaction value, and then adding any other charges such as commissions, royalties, or fees for
technical services.
3. Comparable uncontrolled price method: Under this method, the value of goods or services is
determined by comparing it with the price of similar or identical goods or services that have been
sold or provided in uncontrolled circumstances, such as in the open market or to a related party.
4. Net weight or volume method: Under this method, the value of goods or services is determined
by multiplying the net weight or volume of the goods or services by a unit price.
5. Value of goods or services as per provisions of Schedule -I: there are certain goods and services
whose value is fixed as per the schedule -I of the CGST act.

These are the main methods used to determine the value of goods and services under GST, but
it's important to note that there may be additional rules and considerations that apply depending
on the specific goods or services being sold. And Also, the proper method to determine the value
of goods and services may change depending on the facts and circumstances of each specific
transaction.

what is composite levy scheme

Under the goods and services tax (GST) system in India, the composite levy scheme is an option
available to certain small businesses to simplify their GST compliance.

The composite scheme is available to taxpayers whose annual turnover is up to Rs. 75 Lakhs.
Taxpayers opting for the composite scheme are required to pay tax on their turnover at a fixed
percentage, regardless of their margin, instead of paying GST on their sales and claiming input
tax credit (ITC) on their purchases.

The tax rate under composite scheme is lower than the normal GST rate. The composite scheme
will have a turnover limit and shall be available only to those taxpayers whose principal business
activity is manufacturing, supplying of goods and/or services, or a combination of both.

The composite scheme aims to reduce the compliance burden for small businesses by simplifying
the GST process and reducing the need for them to maintain detailed records of their inputs and
inputs used in the manufacture of their goods.

It's worth noting that, the composite scheme is optional and taxpayers who opt for it cannot
claim ITC and they are not eligible to issue tax invoice and can only issue bill of supply. Taxpayers
 who opt for the composite scheme are also not eligible to claim input tax credit (ITC) on their
purchases.

discuss its provision in detail

The composite levy scheme under the goods and services tax (GST) system in India is available to
certain small businesses to simplify their GST compliance and reduce their compliance burden.

The scheme is available for taxpayers whose annual turnover is up to Rs. 75 Lakhs. The composite
scheme will have a turnover limit and shall be available only to those taxpayers whose principal
business activity is manufacturing, supplying of goods and/or services, or a combination of both.
The composite scheme is optional and taxpayers who opt for it cannot claim input tax credit (ITC)
and they are not eligible to issue tax invoices, instead they can only issue bill of supply.

Taxpayers who opt for the composite scheme are required to pay tax on their turnover at a fixed
percentage, regardless of their margin, instead of paying GST on their sales and claiming input
tax credit (ITC) on their purchases.

The tax rate under composite scheme varies based on the nature of goods and services. The GST
rate for services under composite scheme is fixed at a rate of 6%. For the manufacturer of goods,
the composite scheme tax rate is fixed at 1% or 2.5% of the turnover depending on the type of
goods manufactured.

The composite scheme aims to reduce the compliance burden for small businesses by simplifying
the GST process. Taxpayers under the composite scheme are required to file returns on a
quarterly basis instead of monthly returns, which is required under the normal GST scheme.

It's worth noting that, tax payers who have opted for the composite scheme cannot change their
option for the next 2 financial years and also they cannot switch to normal GST scheme before
the expiry of 2 financial years from the date of opting composite scheme.

who is required to file an annual report

Under the goods and services tax (GST) system in India, certain taxpayers are required to file an
annual return, which is a summary of their GST transactions for a financial year.

1. Registered taxpayers: All registered taxpayers under GST, regardless of their turnover, are
required to file an annual return in the form of GSTR-9 or GSTR-9A.
2. Composition taxpayers: Taxpayers who have opted for the composition scheme under GST are
also required to file an annual return in the form of GSTR-9A.
3. Non-resident taxpayers: Non-resident taxpayers who are registered under GST are also required
to file an annual return in the form of GSTR-9A.
4. Input Service Distributors: Input Service Distributors are also required to file an annual return in
the form of GSTR-6A

The annual return contains details of the GST transactions for the financial year, including the
turnover, GST paid and ITC availed. It must be filed by the due date, which is usually 31st
December of the next financial year.
 It's worth noting that, Filing of annual returns is mandatory and non-compliance with this
requirement may result in penalties. Annual return acts as a tool to reconcile the ITC availed and
the GST paid during the year and also it will help to track the compliance of taxpayers.

in what format such return should be furnished

Under the goods and services tax (GST) system in India, annual returns must be filed in a specific
format as prescribed by the government. The format of the annual return depends on the type of
taxpayer and the type of return being filed.

1. Registered taxpayers : All registered taxpayers under GST, regardless of their turnover, are
required to file an annual return in the form of GSTR-9. This return contains details of the GST
transactions for the financial year, including the turnover, GST paid and ITC availed.
2. Composition taxpayers : Taxpayers who have opted for the composition scheme under GST are
also required to file an annual return, but in a different format called GSTR-9A.
3. Non-resident taxpayers : Non-resident taxpayers who are registered under GST are also required
to file annual return in form GSTR-9A.
4. Input Service Distributors : Input Service Distributors are also required to file annual return in
form GSTR-6A.

These returns are electronic and must be filed through the GST portal. The annual return must be
filed by the due date, which is usually 31st December of the next financial year. The return must
contain the correct and accurate information, failure to do so may lead to penalties and fines. The
GST portal also provide the facility to download and print the filed return.

what is the due date for furnishing such report

Under the goods and services tax (GST) system in India, the due date for furnishing the annual
return depends on the type of return being filed.

1. GSTR-9 and GSTR-9A : Annual return for registered taxpayers and composition taxpayers must be
filed on or before the 31st December of the next financial year. For example, the annual return for
the financial year 2020-2021 must be filed by 31st December 2021.
2. GSTR-6A : Annual return for Input Service Distributors must be filed on or before the 13th day of
the month following the end of the quarter.

It's important to note that, It is mandatory to file annual return even if there is no transaction for
the month/quarter and returns should be filed in the format that is applicable to the taxpayer.
Also, late fees and penalties may apply for taxpayers who fail to file their annual returns by the
due date.