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GST Auditing

Audit under GST law means the examination of records, returns and other documents maintained or furnished by the registered person - to verify the correctness of turnover declared, taxes paid, refund claimed and ITC availed and to assess his compliance with the provision of GST Acts and rules.

Why Is GST Audit Required?

  • All Entities require GST Auditing whether it is a Private limited company, Individual company(Proprietorship), Partnership, The firm, Limited Liability Partnership, Society etc.

  • Turnover Limit: Pan India Turnover across all GSTIN exceed: 2 CRORE RUPEES is required to get his records audited by a CA(Chartered Accountant) or a CMA(Cost and Management Accountant).

  • The assessee who is required to get his records audited contained under section 35(5) will file the Annual Return electronically alongside audited report and the comprehensive explanation, accommodating the estimation of provisions expressed in the audit report for the financial year with the audited yearly fiscal summary, another report of audited yearly records in Form GSTR-9C with GSTR 9 will also be required to be filed.

Things Required While GST Auditing

    Each assessee enlisted under GST will keep up his records to demonstrate the record:
  • Assembling or generation of product/service

  • Outward supply (Sales)

  • Inward supply(Purchase)

  • Input Tax Credit (ITC) availed and realized

  • Place of Supply provisions

  • GST payable and paid

  • Eway Bill Provisions (Applicable for FY 208-19)

GST Audit Procedure

    Verifying GST Reconciliations such as :
  • GSTR 1 Returns vs Books
  • GSTR 3B Returns vs Books
  • GSTR 1 Returns (Sales Booked) vs GSTR 3B (Liability Paid)
  • GSTR 3B Returns vs GSTR 2A (Input Credit Register)

  • The auditor will conduct the audit of the books and records of the enlisted assesse, they will confirm all the imperative documents, for example, will check the books kept up by the enrolled individual and the arrival and articulations outfitted under the demonstration.

Audit Checklist

  • Two imperative focuses get secured under this heading:

  • Interest and punishments in the GST Act:
  • Interest for wrong input: 24%.
  • Interest for late payment: 18%.

  • Amendment in GSTR:
  • At the point when the evaluator comes to think, he would prescribe.
  • the administration to make correction in GSTR 1 / GSTR 3B.
  • At this stage the auditor needs to check the accompanying information:

  • Difference between receipt date and date of supply:
  • This should not surpass 180 days.

  • The measure of supply needs to stay level with receipt sum and GST :
  • On the off chance that the installment sum is not as much as receipt sum in addition to GST, the info charge credit to the degree of short installment would get turned around.
  • TRAN I/ TRAN-II Credit is to be checked if it is properly forwarded from respective service tax returns, sales Tax returns, Excise Returns.