Rule 80(3) of CGST Rules uses the expression “every registered person whose aggregate turnover during a financial year exceeds two crore rupees”.
- So GST Audit is Applicable for every Registered person, whether or not the person is having any Taxable supply during the year. Therefore a person having non taxable supply of more than Two crore Rupees during the year and having GST Registration, needs to get GST Audit done.
To calculate Aggregate Turnover following Points are important:
- Aggregate turnover is PAN based while turnover in a State / UT, though similarly worded , is limited to turnover in a State / UT, which is limited to a State; It is therefore, reasonable to interpret that the word turnover used in Section 35(5) ought to be understood as aggregate turnover.
- The Turnover to be calculated for the whole Financial Year of 2017.18. For the financial year 2017–18, the GST period consists of 9 months whereas the relevant Section 35(5) uses the expression financial year; Therefore, in the absence of clarification from the government, and to avoid any cases of default, it is reasonable to understand the turnovers for the whole of the financial year which would also include the first quarter of the financial year 2017–18.