GST Audit

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GST Audit services in Delhi NCR

GST Audit at Lex N Tax

Our team can deliver the following in GST Audit:

Monthly comparison of Input Tax Credit between returns and books of accounts
Finding mismatch or discrepancies in ITC
Consultancy on eligibility, reversals, or re-claim of ITC
Monthly review of output tax liability
Reconciliation of value of supply declared in annual returns with audited financial statements
Applicability and treatment of transactions covered under Reverse Charge Mechanism(RCM)
Recommendations on better internal controls for increasing efficiency
Providing cost of non-compliance matrix
Timely providing of reports or statements mandated under GST law

What is GST Audit?

GST audit means an examination of statements, records, returns, and related documents furnished by the registered persons. GST Audit is conducted to verify whether the sales, output tax paid, input tax refund claimed, and ITC availed stated in his annual report are true and fair or not. we are Best and Affordable GST Audit services in Delhi NCR. Lex N Tax is know for the Best GST Audit services in Delhi.

GST audit is a reconciliation statement of audited financial statements with the annual return furnished. Further, a GST audit also assists in assessing whether the taxpayer is obedient to the provisions of GST.

For whom GST Audit is compulsory in Delhi NCR?

Section 35(5) of CGST Act,2017 provides that every registered person whose turnover in a financial year exceeds the amount of Rs. 2 crores, is required to get his accounts audited by a CA or CMA. He shall submit the following with the GST Annual Return filed by him:

1) Copy of audited financial statement;

2) Reconciliation statement (Form GSTR-9C); and

3) Other prescribed documents

The term ‘turnover’ is not defined under the GST Act. However, aggregate turnover is defined under section 2(6) of the CGST Act. Accordingly, aggregate turnover refers to the value of all outward supplies (taxable + exempt + exports + inter-state) of a person with the same PAN.

What is the checklist for GST Audit in Delhi NCR?

An auditor should cover the following points while performing an audit assignment under GST:

1 Registration Certificate

Whether new registration has taken or migrated from the old regime
Details of business verticals, Factory, Warehouse, ISD etc
Whether the additional place of business is included in the registration certificate
Whether any amendments required

2 Invoicing and related Documentations

Whether Tax Invoice or Bill of Supply issued as per the provisions contained in GST law
Whether receipt vouchers issued in case of receipt of advance
Whether proper credit note/debit note issued as per GST provisions
Check correctness of Invoicing.
Whether delivery challan/e-waybills issued and maintained properly
Whether transport documents properly maintained and verified
Whether a unique series of invoicing is given as per the requirements of the law. Best and Affordable GST Audit services in Delhi NCR.

3 Supply

Whether supply is correctly classified under Taxable, exempt, export, non-GST, zero-rated, nil-rated, supplies to SEZ, deemed exports, etc.
Whether transaction falls under the scope of supply or not
Identification of supply as Inter-state or Intra-state
Whether supply is a composite supply or a mixed supply
Proper classification of supply, i.e. supply of goods or supply of services
Transactions related to goods sent for job work
Whether supply falls under negative list

4 Time of Supply

Whether TOS of goods determined as per sec 12 of CGST Act
Whether TOS of services determined as per sec 13 of CGST Act
Whether TOS in case of reverse charge is properly dealt
Whether any changes in the rate of GST is dealt with sec 14 of CGST Act
TOS treatment in case of continuous supply of goods or services. Best and Affordable GST Audit services in Delhi NCR.

5 Input Tax Credit

Check ITC availed with invoices
Check inward supply records and reconcile with invoices of vendors
Reconciliation of inward supplies records with monthly returns
Check restricted credits like blocked ITC and ITC for non-business purposes, ITC against exempt outward supplies etc.
Check the adjustment of taxes, i.e. set-off with the ITC or payment in cash
Check ITC on capital goods correctly claimed
Check whether reversals of ITC done whenever required
Any reversals in case of goods sent for job work
Whether the recipient of supply has made the payment within 180 days of the invoice
Check whether the documents based on which ITC claimed have the required particulars as per law
Check proper treatment of ITC in case of Credit Notes/debit notes
Check whether appropriate bifurcation of ITC made as per the rules under GST
Check reconciliation of ITC claimed in GSTR-3B with auto-populated data in GSTR-2A
Check transitional credits properly
Any reversals of ITC from the change of schemes and other circumstances. Best and Affordable GST Audit services in Delhi NCR.

6 Classifications

Whether the classification of goods or services as per schedules or notifications
Whether HSN/SAC taken as per law
Check whether any specific advance ruling applicable
Check whether any change in tax by way of any notification or exemption notification

7 Input Service Distributor

Whether registration take as per law separately
Whether the distribution of ITC done as per the law
Whether turnover for determining the amount of ITC is calculated correctly as per law
Whether ISD invoice is issued properly
Whether proper distinction of eligible or ineligible credit done before distributing ITC. Best and Affordable GST Audit services in Delhi NCR.

8 Returns

Review all returns filed by a registered person
Reconcile GSTR-9 with GSTR-1 and GSTR-3B
Check interest liabilities, if the interest is payable, whether paid or not
Check late fees paid adequately while filing the return
Whether amendment details filed correctly in the return

9 GST collections and payments

Whether timely payment of due taxes made
Check taxes paid under incorrect heads, i.e. IGST paid in place of CGST & SGST and vice-versa
Check whether any excess collection of tax

10 Reverse Charge

Check the compliance of provisions of sec 9 of CGST Act
Check whether RCM paid under incorrect heads
Check corresponding ITC on RCM correctly claimed
Whether conditions of paying tax under RCM fulfilled

11 Value of Supply

Check all inclusions in the amount of supply correctly done to arrive at the value for taxability as per section 15 of the CGST Act
Whether treatment of discount correct
Whether valuation rules apply correctly wherever applicable

12 Place of Supply

Identification of Intra/Inter-state supply
Whether conditions of inter-state supply fulfilled
Whether conditions of intra-state supply fulfilled
Whether conditions of export fulfilled
Whether export made under LUT/Bond
Whether exports with payment of GST
If the supplier is an intermediary, requirements fulfilled or not
Whether supplies correctly reported in returns, i.e. exports, imports, etc. Best and Affordable GST Audit services in Delhi NCR.

13 Refunds

Whether the supplier is eligible for claiming the refund
Whether any application for refund filed, any refund sanctioned.
Any refund re-credited to E-cash ledger
Check any wrong claim of refunds

14 Inward Supplies

Proper classification of inward supplies into intra-state, inter-state, imports etc
HSN classification of inward supplies
Check inward supplies with monthly returns
Check register of inward supplies whether any deviations from the invoices in possession.
Check whether ITC included in cost whose ITC is not allowable
Check any deletion or destruction of fixed assets
Check whether any stock is stolen or theft whose ITC has been claimed.

15 Maintenance of Books of Accounts

Whether books of accounts and records maintained as per the applicable provisions of GST law
Check how records are kept – Manual or Electronic
Whether a separate set of books maintained for each place of business
Whether all required registers under GST maintained as per the law. Best and Affordable GST Audit services in Delhi NCR.

16 General

Whether the Anti-profiteering clause complied
Are there any department proceedings or inspections in force
Check carefully significant points in statutory, internal audit reports
Check all adverse aspects in previous year reports
Check any judicial pronouncement that can apply to the registered person
Be careful of any unusual transactions
Discuss every adverse point in your findings with the client
Use appropriate audit tools during the audit
How is GST Auditor appointed?
A registered person can appoint a GST auditor at the beginning of the year. Auditors can be selected by the following:
Proprietor – In case of sole-proprietorship
Partner – In case of Firm or LLP
Board of Directors – In case of Companies

What are the records examined by a GST Auditor?

Below are the records and documents examined by the auditors while performing audit procedures:
Register of Outwars Supplies
Register of Inward Supplies
Inventory Register
Ledgers of expenses
Register of Input tax credits
ITC claimed and utilized
GST payables and actual payments
Generation of e-way bills
Any other necessary documents or records for the period relevant to the audit
Comments required by an Auditor
In case the auditor discovers any mismatch in the accounts and records, he shall add comments on such a mismatch in the reconciliation statement in Form GSTR-9C.
Submission of GST Audit report
An auditor shall report the following things:
Whether records and transactions correctly kept and maintained
Whether Financial Statements prepared, conform with the books of accounts
To confirm the authenticity of the information in GSTR-9C.
To mention any observations or comments in the report thereof.

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