GST Audit Checklist
A GST audit involves the review of the records, returns, and different archives of a taxpayer. It likewise checks the precision of the turnover pronounced, taxes paid, discounts, and input tax credit availed, just as other GST Act compliances it should be approved by an authorized representative. So, in this blog, we will look into the GST audit checklist.
GST Audit Checklist
1. Reconciliation between GSTR-1 & GSTR-3B
It ought to be guaranteed that monthly or quarterly GST returns match with the books of records prior to documenting GSTR-9. So, it is important for you to carry out reconciliation between GSTR-1 and GSTR-3B before creating financial statements.
2. Turnover under GST and Income Tax
As we already know that the definition of turnover under GST and Income Tax is different. But, now both the IT and GST department will exchange the data. Hence, it is important for you to keep track at the time of computing aggregate turnover under GST and Income tax.
3. Turnover Based Audit
Turnover-based GST Audits are carried out by the authorized person on all the PAN level GSTIN. Hence, it is important for you to keep a check on all supplies made including exempted supplies from different branches (GSTINs) at the time of calculating turnover.
4. Stock transfer
In case if there are various branches, stock transfers among branches should likewise be reconciled. As the inter-state stock transfer is considered as supply under GST. The stock held according to books of records and the annual GST return should reconcile.
5. Late fees and Interest
It is important for you to pay all the late fees and interest on time as the auditor will check the same. In addition, you should maintain a proper record of the late fee and interest payment.
6. Input Tax Credit Reversal
The auditor will check the difference between the supply date and payment date, in case if the difference between these two dates exceeds 180 days. Because if you do not pay the GST within the prescribed limit the ITC will be reversed. So, you need to keep the proper records of the payment and ITC availed.
7. E-Way Bill
Keep a tab on the e-way bill issued for all the supplies made or received. As any discrepancy between e-way bills issued and invoices issued may attract penalties. Moreover, check if you have sent any Goods on an approval basis, and it is exceeding the period of 6 months?
8. Taxes Paid under RCM
Under Reversed Charged Mechanism (RCM) basis taxes should be paid in cash by the taxpayer. Input Tax Credit for the same can be claimed in the same month. So, the taxpayer needs to take care of the taxes are paid in cash under the reverse charge mechanism (RCM).
9. Miscellaneous Points
- Make sure that the payment is equivalent to the GST invoice. Because, if you have paid less than the GST invoice amount you would need to reverse the ITC availed.
- Check whether both the sales and purchases are charged with the appropriate GST rate. And, in case if there is any data gap, it should be reconciled on a priority basis.
- Check if whether the tax department has issued any notices.
