Question11:
Is turnover before GST regime is considered for audit 9C E.g. apr17 to june17 turnover is 30lakh and july17 to Marc 18 is 1.71 cr is audit applicable

Answer:

Section 35(5) of CGST Act states that:

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.

Further, Rule 80 is reproduced below:-

CGST RULE 80

(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 nonresident taxable person, shall furnish an annual return as specified under sub-section (1) of section 44 electronically in FORM GSTR-9 through the common portal either directly or through a Facilitation Center notified by the Commissioner:
Provided that a person paying tax under section 10 shall furnish the annual return in FORM GSTR-9A.

(2) Every electronic commerce operator required to collect tax at source under section 52 shall furnish annual statement referred to in sub-section (5) of the said section in FORM GSTR -9B.

(3) 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.

In Rule 80, the prescribed limit is aggregate turnover in FY. The definition of aggregate turnover is as follows:-

'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;

The turnover made during the month of April-June is covered under the definition of aggregate turnover. Thus, turnover of pre GST regime in April to June is also taken into consideration for calculating limit of 2 crores.

(Reply dt.14/05/2019)