Audit under GST includes assessment of records, returns and different reports kept up by a GST enrolled individual. This additionally guarantees accuracy of turnover announced, discount asserted, charges paid, input expense credit benefited & evaluate other compliances under GST Act to be checked by an approved master . In event the yearly turnover of an enlisted citizen is above Rs. 2 crores in a money related year, he is required to get his records examined by a Chartered Accountant or Cost Accountant consistently. A financial year covers the year time frame starting from April of a schedule year to March of the following schedule year.
Correct Time of Supply can be known, so that taxes are never prepaid (i.e. paid before it is due) or post-paid (i.e. paid later than it was due) and thus paid on time. This also results in saving of interest cost (both on pre-payment and post-payment) and penalties (in case of post-payment). For eg: tax liability on advance receipts from Customers,etc.
Correct Place of Supply so that the respective taxes are correctly collected and paid (IGST, CGST, SGST) because wrong but full payment of taxes is no excuse and the taxes under the respective supplies have to paid correctly. For eg: A marketing consultant providing technical sales service to a Foreign Company in respect of sales to be done in India – is an intra-state supply (since the recipient of service is Outside India and therefore the Supplier’s place of business is taken as place of supply).
Taxes are charged and paid on the goods & services @ correct gst rates since the year has witnessed many revision in tax rates of various goods.
Any tax over-collected has to be paid to the Government since it will result in profiteering, and thus huge penalties. Similarly, any under-collection of tax has to be paid out of pocket of the supplier/seller.
HSN Codes for the goods and services have been correctly ascertained and filed in the GSTR 1 return.
Books of Accounts have been maintained as per the manner laid down under the ACT.
Invoices have been raised correctly (i.e. with complete information as is necessary).
Matching of GST Returns with the Books of Accounts.
Matching of GST Electronic Credit & Cash ledger with the Credit reflected in the books.
Finding out any unclaimed GST Input Tax Credit. Eg: on bank charges, sundry expenses bills like printing & stationery,etc.
Recording of Fixed Assests purchased on Taxable Value and availing the required GST Input Tax Credit so that GST ITC can be availed correctly and fully and also depreciation be calculated on the taxable value.
Claiming of correct refunds for the Exporters, for the tax paid on inputs.
Reversing of any ITC that was wrongly claimed or was liable to be reversed.
Tax to be paid under Reverse Charge for few particular services.
As prescribed under the rules.
Reconciliation of turnover, ITC & Tax paid
Review of Accounts/GST Return
Classification of Supply
Compliance of Reverse Charge Mechanism (RCM)
Review of amount booked under head “other income”
Admissibility of Input Tax Credit
Review of Creditors outstanding for more than 180 days
Review of Sale/disposal of business assets
Review of transactions not forming part of annual accounts
Statements, returns etc.
Offer letter which includes the scope and objectives of auditor and management.
Engagement and appointment letter.
Audit plan and Audit programme.
Detailed audit checklist for GST audit or GSTR 9C.
Copies of invoices, agreements, etc.
Copy of written representation letters obtained from management.
Copy of GST return, details of tax paid and credit availed, sales made etc.
The important matters that are identified during the audit and deficiencies in internal controls which are communicated to management.
The risk assessment procedure applied for areas of high risk and areas of low risk is to be noted.
Sufficient and appropriate audit evidence obtained during the audit.
All working papers in the electronic form such as Excel, CSV, PDF, JPEG, JSON etc.
A good service.
Vast experience in the domain.
Identification of loopholes and weak points.
Proper assessment as per statutory rules
Legal and financial experts available for guidance.