Below mentioned point should be considered once before finalising GST Annual Return or GST Audit
1. Applicability of GST Audit Obtain list of all branches.
Check whether, branches within the state are informed as branches on GST Portal.
Check the applicability of GST Audit as per Aggregate Turnover.
Reconciliation of Books of Accounts with GSTR-9 for Turnover declared, Output paid, ITC availed and Refund Claimed. Matching of All details in GSTR -1 and GSTR – 3B shall also be considered.
Interest to be paid only on net cash tax liability on delayed filing of return, if any. Also interest is to be paid if excess credit claimed or less liability declared. Report in Auditor Recommendation in Part V of Form 9C.
4. Cross charge
Applicability of Cross charge, i.e. Supply of services to branches located in other
States. IGST shall be applicable even if without consideration.
5. Exports & Refunds
Check Outward supplies claimed as exports. Check calculation of refund, if applicable. Also Check provision of FEMA, whether payment is received within 270 Days? Have to report erroneous refund to be paid in bank, Report in Part A of Point V of Form 9C.
6. Value of supply
Checking valuation of supply, i.e., whether the provisions of Section 15 are complied?
If any sale to related party is made, whether Rule 28 to Rule 31 of CGST Rules, 2017 are duly complied with.
7. Place of Supply
Verification of ’place of supply’, i.e., to check whether CGST/SGST or IGST is correctly charged.
8. Capital Goods Treatment
Taxability on Sale of Capital Goods or used cars and ITC reversal over the same.
9. Treatment of Advances
Treatment of Advances received. Advances are taxable only in case of Services.
10. TDS TCS Matching
Checking Whether TDS TCS is deducted and same amount of supplies are declared in books plus annual return.
11. 26AS Matching
Check 26AS to ensure that Supplies on which TDS is deducted are duly declared.
12. E-way bill Compliance
Ensuring Compliance of E-way bill.
13. RCM Compliance
Expenses liable to Reverse Charge Mechanism including the foreign payments
(Director’s Remuneration as per Circular No. 140 /10/2020 – GST dated 10th June, 2020). Payment to the director falling under Salary head or professional fees shall also to be looked upon.
14. ITC Reversal
Checking that payment to creditors is made within 180 days, else ITC to be
reversed OR If not reversed then give Note in Para 5 of Part B of Form 9C.
Reversal of ITC in case of supply of exempted/non-GST supply as per Rule 42
plus Rule 43 of CGST Rules, 2017.
Reversal of ITC on any value of goods written off in the books.
Ensure blocked ITC as per Section 17(5) has been reversed.
15. Purpose of ITC Claimed
Ensure the Purpose of supplies on which ITC is claimed is in the course & furtherance of Business.
16. HSN & rate of Tax
Check Rate of Tax applied on outward supply alongwith HSN/SAC used.
17. Place of Business
Check the rent agreements for the registered place of business. Whether the same is updated with the GST Portal? Also check the Person authorized to sign the invoices is still authorized and only authorized person is signing the invoices.
Ensure Tax invoices/debit or credit notes/self-invoices/payment voucher/refund
voucher are issued and are in order as per Rule 46 to Rule 55 of the CGST Rules,
19. Goods Sent to Job Work
Checking compliance in case of Goods Sent to Job Work or Supply made to Agent.
20. Records maintenance
Records are maintained as per Rule 56, Rule 57 and Rule 58 of the CGST Rules, 2017.
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