GST Audit Checklist
Since the beginning of GST Audit in 2019, we noticed the common areas where most taxpayers made mistakes and we compiled that list together with relevant sections, rules and notifications in the form of GST Audit Checklist. The purpose of this GST Audit Checklist is not to give you lenthy article that might get obsolete with amendments but to nudge you in the right direction and provide links to updated and reliable sources.
GST Audit Checklist is classified under 3 heads as presented below. Small but useful articles are written on each of these topics. Further, it is assumed that the reader has basic understanding of GST returns and structure of GST Act.
Forward Charge
Reverse Charge
- RCM on Ocean Freight
- RCM on purchase from unregistered dealer
- RCM Goods Transport Agency
- RCM on Legal Services
- RCM on Security Services
- RCM on Rent a Cab Services
- RCM on service provided by Director
- RCM on Services received from Government
- RCM marked in GSTR-2A
- Job work on Imported Goods
- RCM on Royalty to foreign company
Input Tax Credit
- Tran-1, Tran-2 related issues
- GSTR-2A vs GSTR-3B
- Blocked Credits 17(5)
- Common ITC Reversal
- 180 days reversal (Trade Payables)
- ITC Reversal for Credit Notes reflected in GSTR-2A
- ITC Reversal in case of insurance claim
- Interest for ITC reversals
- ISD and Cross Charge ITC verification
- Higher Duty Drawback + ITC Claim
- Imports – Customs Duty taken in place of IGST
Instructions to use GST Doctor Software
Basic Documents Required for GST Audit
Here is the list of documents to be asked from the taxpayer to start the GST Audit through ADT-01. Although depending on the nature of business, other documents may also be asked for GST Audit.
- Balance Sheet and Profit and loss account with schedules and notes to accounts
- Trial balance for particular GSTIN
- Income Tax audit Report (including Form 3CA, 3CD etc)
- Statutory Auditor’s report
- Cost Audit report, if applicable
- GST Returns (1, 3b, 2A/2B, 9, 9C etc)
- ITC Taken Data Invoice/BOE wise breakup