TaxTMI 
TaxTMI 
if we are doing tax audit of account of 2016-17 in aug 2017. can we give bill of audit after charging gst on audit bill. if yes then how will client show gst on audit fees in his account. Because audit provision has to be made in march 2017 balance sheet. then can he made audit provision with gst in march 2017 balance sheet. will he received input credit of GST on audit bill and how...
GST on audit fees
05 Aug 2017 
6 Replies 
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GST on audit fees: invoice issued post-GST attracts tax; recipient may claim input credit and record tax in books.
Where an audit for a prior period is billed after GST commencement, GST must be charged on the audit invoice; time of supply is determined by the earliest of invoice issuance, provision of service, or the recipient recording the service. The supplier should report the invoice in GSTR 1 so it flows to the recipient's GSTR 2A and credit ledger. The recipient may claim input tax credit for GST on audit services and may show a provision in the balance sheet inclusive of the tax component, with actual adjustment on payment. (AI Summary)
Where an audit for a prior period is billed after GST commencement, GST must be charged on the audit invoice; time of supply is determined by the earliest of invoice issuance, provision of service, or the recipient recording the service. The supplier should report the invoice in GSTR 1 so it flows to the recipient's GSTR 2A and credit ledger. The recipient may claim input tax credit for GST on audit services and may show a provision in the balance sheet inclusive of the tax component, with actual adjustment on payment. (AI Summary)