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February 3, 2021

BVSS says Not to delete the provisions of GST Audit as it may lead to sharp decrease in compliance level

by CA Shivam Jaiswal in GST

BVSS says Not to delete the provisions of GST Audit as it may lead to sharp decrease in compliance level

There are different opinion of professionals in respect to deletion of clause of Audit requirement in GST in the budget 2021

One major change in GST in the Finance Bill 2021 is No GST Audit is required. The Professional Association BVSS has raised concern as represented as press release as reproduce below

BVSS applauds the efforts of the Hon’ble FM Mrs. Nirmala Sitharaman & the whole team for the exemplary efforts towards reviving the economy vide the proposals in the Union Budget 2021-22.

However, regarding proposal to remove the provisions of audit under GST, BVSS is of the view that the said provisions should continue. In this regard, the observations of BVSS are as under.

The basis of the decision taken by the Government seems to be that substantial part of the GST liability discharged by the registered tax payers vide DRC-03 at the time of filing annual returns. is paid by them suo-moto. Contrary to this. the fact is that the said tax paid by the tax payers and shown along with GSTR-9 is a result of hand holding by the professional performing GST audit. The shortcomings which are found in the records of the tax payer at the time of annual audit. are informed to the tax payer by the auditor concerned and the same is reflected by them in the annual return filed by the taxpayers in GSTR-9.

Qualified professionals are able to handhold as also persuade the taxpayers to clear out their GST liabilities. This helps the government to get timely revenue, as also helps the taxpayer to clear the dues well within time.

BVSS is of the considered view that reconciliation of GST returns with the audited financials is an extremely crucial task entailing lot of responsibility, which can be completed only by qualified professionals having in-depth understanding of financials statements, accounting concepts as also the GST law.

BVSS also wish to point out that by the professionally prepared and verified reconciliation statements. the revenue can get structured data. helping officials to perform their task more effectively.

The audit professionals therefore act as a bridge between the Government and the Industry.

BVSS thus feels that it is the audit professionals who get the compliance done. BVSS also feels that by removing the provisions of audit by the audit professionals, there shall be significant adverse impact on revenue and sharp drop in compliance levels.

BVSS strongly suggests that the provisions of GST audit by audit professionals should not be deleted. We shall be making detailed representation to the Government in this regard and are willing to elaborate it further.

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