Penalty if GST Audit not done
There is Late Fees prescribed in Section 47 of CGST Act for not filing GST Annual Return as per Section 44 of CGST Act. But there is no specific penalty prescribed for not getting the GST Audit done . Therefore General Penalty as per Section 125 of CGST Act 2017 of Rs 25000 may be imposed .
Similar provision also exists under State/UT GST Act also.
Comment : Late fees for not filing GST Annual return is Rs 100 per day under CGST subject to Maximum of 0.25% of Turnover in the State or Union territory under CGST and Rs 100 per day under SGST subject to Maximum of 0.25% of Turnover in the State or Union territory under SGST.
Relevant provisions are as follow :-
Section – 44 of Central Goods And Services Tax Act, 2017 : Annual return.
44. (1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.
(2) Every registered person who is required to get his accounts audited in accordance with the provisions of sub-section (5) of section 35 shall furnish, electronically, the annual return under sub-section (1) along with a copy of the audited annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year with the audited annual financial statement, and such other particulars as may be prescribed.
As per Section 35(5) of CGST Act 2017
Every registered person whose turnover during a financial year exceeds the prescribed limit 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 and such other documents in such form and manner as may be prescribed:
As per Rule 80(3) of CGST Rules 2017
Every registered person whose aggregate turnover during a financial year exceeds two 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, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner. [ Refer How to calculate Turnover for GST Audit ]
Section – 47 (2) of Central Goods And Services Tax Act, 2017 : Levy of late fee.
Any registered person who fails to furnish the return required under section 44 by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter per cent of his turnover in the State or Union territory.
Section – 125, Central Goods And Services Tax Act, 2017 : General penalty.
Any person, who contravenes any of the provisions of this Act or any rules made thereunder for which no penalty is separately provided for in this Act, shall be liable to a penalty which may extend to twenty five thousand rupees.