What is GST Audit ?

GST Audit Services involve reviewing and verifying the GST compliance and financial records of a business. The objective is to ensure that all GST-related transactions are accurately recorded and reported as per the applicable GST laws and regulations.

In India, a GST audit is a systematic examination of a taxpayer's records, books, and GST returns to ensure compliance with the Goods and Services Tax (GST) laws. The primary purpose of a GST audit is to verify that the taxpayer has accurately reported their GST liabilities and input tax credits, and has complied with all relevant provisions of the GST Act.

Benefits

  • Ensures Compliance : Helps maintain compliance with GST laws and avoid penalties.
  • Improves Accuracy : Identifies errors or discrepancies, leading to accurate reporting and tax payments.
  • Builds Credibility : Demonstrates a commitment to lawful business practices, enhancing the business's credibility.
  • Enhances Transparency: : Ensures financial records and GST filings are transparent and in accordance with legal requirements.

Process /Steps

01

Preparation

The taxpayer gathers all relevant documents, such as GST returns, invoices, financial statements, and records related to GST transactions.

02

Audit Notice

If it's a departmental audit, the GST authorities will issue a notice to the taxpayer informing them of the audit.

03

Conducting the Audit

The auditor reviews the taxpayer’s records, checks the accuracy of GST returns, and verifies compliance with GST laws. This may involve a detailed examination of invoices, contracts, and other documentation.

04

Report Generation

After completing the audit, the auditor prepares a report detailing their findings, including any discrepancies or non-compliance issues, and may recommend corrective actions.

05

Follow-up

Based on the audit report, the taxpayer may need to take corrective actions, such as filing revised returns or paying any additional GST liabilities.

06

Resolution

Addressing any issues raised during the audit and ensuring that all required actions are taken to comply with GST laws.

Documents Required

  • GST Returns : Copies of filed GST returns (GSTR-1, GSTR-3B, GSTR-9, etc.).
  • Invoices : Sales and purchase invoices to support transactions reported in GST returns.
  • Books of Accounts: Financial records including ledgers, journals, and cash books.
  • Payment Vouchers : Proof of payment for GST liabilities, such as bank statements and challans.
  • Input Tax Credit Records : Documents supporting claims for Input Tax Credit (ITC), such as supplier invoices and credit notes.
  • Contracts and Agreements : Agreements related to sales, purchases, and other transactions.
  • Bank Statements : Statements showing transactions related to GST payments and receipts.
  • Correspondence with Tax Authorities : Any notices, letters, or communications received from GST authorities.
  • Other Supporting Documents : Any additional documents relevant to GST transactions, such as export documentation or credit/debit note copies.

Our Support?

  • Expert Guidance: Providing detailed insights and advice on GST compliance and audit requirements.
  • Document Preparation: Assisting in gathering and organizing all necessary documents for the audit.
  • Conducting the Audit: Performing a thorough review of your financial records and GST returns.
  • Report Generation and Follow-up: Preparing the audit report and assisting in implementing any corrective actions.
  • Ongoing Compliance Support : Offering continuous support to maintain compliance with GST laws and regulations.

Frequently Asked Questions

  • Self-Audit: This is conducted by the taxpayer themselves. The taxpayer reviews their own records and GST returns to ensure accuracy and compliance.
  • Statutory Audit: Required under GST law, this audit is performed by a Chartered Accountant or a Cost Accountant, and is mandatory for certain categories of taxpayers. The auditor examines the taxpayer’s financial records and GST returns to verify compliance with GST laws.
  • Departmental Audit: Conducted by GST authorities (the tax department), this audit aims to assess the accuracy and compliance of a taxpayer’s GST returns and financial records. It is usually carried out based on risk parameters or specific issues identified by the tax authorities.