India Inc. is all set to face the first test of their goods and services tax filings, with the authorities preparing to begin audits by picking up returns for risk-based assessment from July. A government official remarked, “There is a direction that the audits should begin in July.”

This is the first time after GST was introduced in July 2017 that GST returns and the accounts of companies will undergo scrutiny for compliance levels and the positions they had taken as to whether they had interpreted tax provisions in a right manner and paid tax or not. However, the authorities have been called for adopting a moderate approach by the tax experts during the reviews.

It is necessary for the companies to file two returns by December 31, following the financial year ended March.

Though, the deadline for FY18 was extended to June 30, 2019. The returns are the GSTR9, or the annual return, and GSTR9C, or the annual reconciliation statement of GST returns with financial statements, certified by a chartered accountant.