New Delhi, Jan 10 (KNN) Goods and Services Tax (GST)  authorities have begun issuing notices for the tax audit exercise, which involves detailed scrutiny of the accounts and records for FY18.

GST audits are being initiated as part of the government’s drive to improve compliance and step up revenue collections amid an economic slowdown.

As per the several media reports, Central GST authorities have already started issuing audit notices to businesses posing a revenue leakage risk.

All businesses with more than Rs 2 crore annual sales are expected to get their books audited for GST compliance and the authorities order a separate compliance audit only in specific cases where they suspect lapses.

The audit ordered by the authorities seeks to verify the turnover declared, taxes paid, refund claimed and input tax credit availed. It will also assess the business’ compliance with the provisions of GST laws.

Tax authorities had issued a detailed GST manual earlier in June, making it clear that at least 70% of taxpayers in each commissionerate have to be audited.

However, extensions given for filing of returns for 2017-18 in 2019 several times over delayed the exercise.

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