GST Audit Checklist: Everything You Need To Know

What is GST Audit Checklist?

A taxpayer is registered under GST, all the records maintained by them has to undergo through a GST audit in for verification. This is done to verify that all information provided by the taxpayer during registration is in accordance with the GST rules or not. The application of GST audit checklist has a very strong mechanism in which complete examination of the records and information provided by the taxpayer is done for assurance that it is fully compliant with the GST rules. The records in the books should be maintained and reconciled in order to avoid any GST evasions.

Which Rules are Important for GST Audit:

The GST audit checklist follows the complete guidelines given the GST Act.  More strict rules are being laid down and reinforced in order to check and analyze the gaps between the GST returns. Also, the business organizations are strictly made to install internal controls and audits and checks at regular intervals to avoid any in compliance with the set GST rules.

GST Audit Checklist

What are The Points of the GST Audit Checklist?

  • GST registration certificate.
  • Invoicing of documents
  • Goods sent to job work
  • Supply of goods and services
  • Time of supply of goods and services
  • Input tax credit
  • Classification of goods and services
  • Input tax service distributor
  • Returns
  • GST collections
  • Payment verification
  • Reverse charge
  • Value of supply
  • Place of supply
  • Refunds
  • Inward supply
  • Maintaining the book of accounts
  • General points followed by the auditor

GST Audit Checklist

GST audit checklist that require a strict compliance and are mandatory are as follows:

  • Checking whether GSTR 3B is in accordance with GSTR 1 and GSTR 2A. This contains two main points:A) Interest and penalties in GST Act: in this the auditors has to reconcile GSTR 3B with GSTR 2A so that the taxpayer/organization does not claim any extra tax credit. If the authorities come to know about any data gaps in the GSTR 3B and GSTR 2A then the taxpayer has to pay the penalties and interest.

    B) Amendments in GSTR: If auditors come to know about any data gap then they can recommend or ask the taxpayer/management to make necessary changes in the invoices at summary levels given in GSTR 1.

  • Checking the particulars of the invoice: Certain rules related to   the format and particulars of invoice are laid under the GST Act. If the auditor finds that the invoice is not in accordance with the prescribed format or is not according to the GST Act he can advise the taxpayer/management to make the necessary changes.
  • Reversal of input tax credit for non-payment: The GST auditor checks the difference between the date of payment and the date of invoice which shouldn’t exceed a period of 180 days. Also the amount paid and the invoice amount plus the GST must be equal and the above said are not accordingly then the input tax credit gets reversed to the extent of short payment.
  • Reviewing the e-way bills and matching them with the invoices: This step is completed in three proper stages namely;1. any mismatch in the e-way bill in relation to the invoice: the e-way bills cannot be altered or deleted but can be cancelled within 24 hours of its generation. Any goods shifted without an e-way bill are liable for a fine on them imposed by the designated authority.

    2. Important points to be kept in mind:

    a) E-way bills cannot be avoided and necessary to make whenever and wherever applicable.

    b) The information given in the e-way bill must match the invoice. Details in both cannot be different or else subject to a penalty or interest.

    3. If goods are transported in non-motorized vehicles: in cases where goods are transported in non-motorized vehicles issuance of e-way bills are not necessary. To avoid e-way bills, certain business owners are taking up the practice of transporting goods through non-motorized vehicle. In such case the auditors must check and scrutinize the e-way bills worth more than 50,000 rupees.

  • Cross checking the pending stock with the job-workers until 30th June, 2017: any stock of goods lying or pending with the job workers must be received within the prescribed period of two years i.e. 30th June, 2019.
Author: Anil Agrawal
EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or