Compliance with GST is not just about the timely filing of returns. Additionally, companies must ensure that their books, tax invoices, GST returns, input tax credit (ITC), and other supporting documents are well aligned. Through a GST audit service, you can discover discrepancies and improve your GST compliance before they escalate to bigger problems.

Need GST Audit Support? Connect with an SSFintax advisor for professional GST audit and compliance services. 

What Is a GST Audit Service?

The typical elements of a GST audit service include a thorough examination of GST records, transactions, returns, tax payments, ITC, and compliance controls. Such a review can be used by businesses to highlight errors, mismatches, unsupported ITC, incorrect tax rates, classification problems, and other compliance issues.

A GST auditing firm, GST auditors, or GST audit consultants can check the records and offer observations and corrective advice. It is important to note that this is not an audit that can be carried out by the GST authorities under Section 65 or a special audit under Section 66.

This is the GST Audit Checklist for businesses.

The following is a list of items that could be used in a practical GST audit checklist:

• Review sales/purchases, expenses, ledgers, tax accounts, and related accounting records (books of accounts).
• In GST returns, match the data in GSTR-1 and GSTR-3B with books and other relevant GST forms.
• Sales reconciliation: Validate taxable, exempt, nil-rated, zero-rated, and non-GST supplies and ensure appropriate GST is being accounted for.
• ITC reconciliation: Match the purchase details and eligible ITC with that of GSTR-2B and ITC claimed in returns. GSTN, in a specific note, urges taxpayers to cross-check the details in GSTR-2B with their books and records.
• Tax liability: Review applicable GST rates, reverse charge, interest, etc. tax liability.
• Credit and debit notes: Check if they are adjusted properly and reported.
• Compliance controls: Audits and checks that ensure that there are no duplicate ITC, missing invoices, or incorrect GST reporting.

List of documents for GST audit review:

Businesses are required to submit books of accounts, sale/purchase registers, GST returns, tax invoices, credit/debit notes, expense records, electronic cash/credit ledgers, GSTR-2B, reconciliation statements, and other pertinent supporting documents depending on the nature and scope of the engagement.

Why GST Controls Audit Matters

Businesses can use a GST controls audit to determine if their in-house GST processes are working as they should. It can look for patterns in the errors of invoicing, return preparation, ITC claims, reconciliation, and tax payment.

Risk advisory services may also be provided to larger organizations to help them identify risks to their processes and compliance on a GST basis at various locations, business units, or transaction types.

The SSFintax Advisor provides GST audit services.

SSFintax Advisor is a CA (Chartered Accountant) firm that offers professional tax and compliance advice. The GST audit services it offers can help businesses do the audit of their GST records, reconciliation of returns, and ITC reconciliation and compliance check. In addition to GST-related services, SSFintax Advisor offers accounting and bookkeeping assistance, GST registration, return filing, ITR filing services, and company registration and compliance services.

A corporate GST audit review may offer a formal evaluation of GST records and compliance procedures, which can be particularly beneficial for organizations that have multiple registrations, transactions, or areas.

Frequently Asked Questions

1. What is a GST audit service?

GST audit service is a professional examination of GST books, returns, transactions, ITC, calculation of taxes, and supporting documents to detect discrepancies and gaps in compliance.

2. Do all businesses need to get an audit by a CA for GST?

No. The earlier requirement to have an audit by a CA/CMA is no longer relevant. Presently, GSTR-9C is a self-certified reconciliation statement of taxable persons who have exceeded the threshold limits of taxpayers.

3. In a GST audit review, what is audited?

Books of accounts, GST returns, sales and purchase records, ITC, GSTR-2B recon, invoices, credit/debit notes, tax rates, and other relevant GST records may be checked.

4. What is the difference between a GST audit and a departmental audit?

The GST authorities carry out a departmental audit pursuant to Section 65. A professional GST compliance review is conducted to look at the business’ records and determine if there are any issues.

5. Does SSFintax Advisor offer services that perform a GST audit?

Yes. SSFintax Advisor is a CA firm providing GST-related compliance and review services, along with accounting and bookkeeping, GST registration & filing, ITR filing, and company registration & compliance support.

6. Can SSFintax Advisor assist in ITC reconciliation?

Yes. SSFintax Advisor can help businesses analyze the purchase data and reconcile eligible ITC with the GST records, including GSTR-2B and relevant GST returns.

7. What is a special audit of the GST?

In certain situations, the GST authorities can give a direction to conduct a special audit per the provisions of Section 66, which mandates the records of the taxpayer to be audited by a chartered accountant or cost accountant named in the direction.