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CA Intermediate · Taxation · Accounts and Records

Ravi Agro Pvt. Ltd. is a registered person. Its turnover was Rs 4 crore in the preceding financial year and it is not liable to audit under any other law. Which statement is correct regarding audit of its accounts under the CGST Act, 2017 as amended up to 30.04.2026?

No mandatory GST audit by a Chartered Accountant applies under the CGST Act as amended. The earlier audit requirement for turnover above the prescribed limit was removed, and reconciliation is now self-certified by the registered person. Audit under other laws or departmental audit may still occur separately.

  1. AAudit under section 35(5) by a Chartered Accountant is mandatory for every registered person with turnover above Rs 2 crore
  2. BAudit by a cost accountant is mandatory for every registered person
  3. CNo mandatory GST audit under section 35(5) applies, since the requirement was omitted from the Act and GSTR-9C is no longer a CA-certified reconciliation statementCorrect
  4. DAudit by the proper officer is compulsory every year

Explanation

The audit requirement of section 35(5) was removed by the Finance Act, 2021 and self-certified reconciliation replaced it. Hence no mandatory CA audit arises merely from turnover of Rs 4 crore. Option A states the old rule.

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