GST Audit

• Understanding the Correct Timing of Supply ensures taxes are neither prepaid nor postpaid, leading to on-time payments, saving on interest costs and penalties. For instance, tax liabilities on advance receipts can be managed effectively.

• Determining the Correct Place of Supply ensures accurate tax collection and payment (IGST, CGST, SGST). Ensuring the right taxes are paid under respective supplies is crucial. For example, identifying intra-state supplies accurately.

• Adherence to the correct GST rates for goods and services, given the frequent revisions in tax rates throughout the year.

• Ensuring any over-collected taxes are refunded to avoid profiteering and penalties, while any under-collection is rectified promptly.

• Accurate HSN Codes for goods and services in GSTR 1 returns.

• Maintaining Books of Accounts as per statutory requirements.

• Issuing invoices with complete and necessary information.

• Reconciling GST returns with Books of Accounts and electronic ledgers.

• Identifying unclaimed GST Input Tax Credits, such as on bank charges or sundry expenses.

• Proper recording and claiming of GST Input Tax Credits for fixed assets, including availing necessary depreciation.

• Correctly claiming refunds for exporters on tax paid for inputs.

• Rectifying any wrongly claimed ITC or reversals required.

• Compliance with Reverse Charge Tax payment for specific services.

• Offer letter outlining auditor and management objectives.

• Engagement and appointment letters.

• Audit plan and programme.

• Comprehensive audit checklist for GST audits or GSTR 9C.

• Invoices, agreements, etc.

• Written representation letters from management.

• GST return copies, tax details, sales records, etc.

• Reporting significant audit matters and internal control deficiencies to management.

• Risk assessment for high and low-risk areas.

• Maintaining electronic working papers in various formats.