Firms submitting cost audit reports to govt to provide GST details

Source:     Aug 09, 2018

Companies that are required to submit cost audit reports to the government will now have to provide details related to the goods and services tax (GST) after the Ministry of Corporate Affairs released a draft of amendment to the relevant rules. This will provide the government with a tool to cross-check GST-related information of a company. The draft cost audit form would also ask for GST reconciliation data, which is essentially a report on the data inserted at the taxpayer’s end and the matching data entered by vendors.

Earlier, the income-tax department released new return forms for businesses that have opted for presumptive taxation scheme. These forms require filers to provide GST identification number (GSTIN) as well as details of transactions under the GST. The requirement for cost audit is triggered at Rs 35 crore for certain companies in the regulated sector, while it is Rs 50 crore for others. 

The amended requirement is not applicable to companies who have already filed cost audits for the previous financial year. “Cost statements (monthly, quarterly and annually) in respect of reconciliation of indirect taxes showing details of total clearances of goods or services, assessable value, duties or taxes paid, CENVAT or VAT or service tax or goods and services tax, credit utilised, duties or taxes recovered and interest or penalty paid,” the draft amendment released by the MCA said.