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GST Audit Services

Rao & Associates GST Audit Services

Maximize Compliance and Efficiency with Expert GST Audits

Elevate your business’s financial integrity with our comprehensive GST audit services. Our meticulous audits are designed to provide a precise and thorough evaluation of your GST compliance and practices. By examining your GST filings, records, and transactions in detail, we help identify discrepancies, ensure adherence to tax regulations, and optimize your tax strategy.

What is GST Auditing?

A GST audit is an in-depth review of a business’s Goods and Services Tax (GST) practices and records to ensure compliance with tax regulations. It involves examining all GST-related documentation, such as invoices and tax returns, to verify that the business is accurately reporting its GST liabilities and claiming the correct input tax credits. The audit aims to identify any discrepancies or errors in the GST filings and ensure that the business adheres to the applicable tax laws.

During a GST audit, auditors assess the accuracy of the GST returns filed and reconcile them with the company’s financial records. They evaluate the effectiveness of the business’s internal controls related to GST management, including the application of tax rates and eligibility for input tax credits. This process helps in detecting any issues or non-compliance that could lead to penalties or other legal repercussions.

A thorough GST audit provides valuable insights into the business’s tax practices, helping to rectify any identified issues and improve overall compliance. It ensures that the business avoids unnecessary penalties, optimizes its tax strategy, and maintains transparent financial practices, which ultimately supports better financial decision-making and operational efficiency.

Importance of GST Audit

Ensures Compliance

Verifies adherence to GST regulations, reducing the risk of penalties and legal issues.

Improves Accuracy

Identifies and corrects errors in tax reporting, leading to accurate financial statements.

Optimizes Tax Management

Provides insights to streamline GST processes and enhance financial efficiency.

GST Audit Form GSTR-9C

As per the Central Goods and Services Tax (CGST) Act, 2017, taxpayers are required to file Form GSTR-9C on or before December 31st of the subsequent financial year. Form GSTR-9C is divided into two parts: Part A and Part B.

Part A

Part A is the reconciliation statement and includes five sections requiring the following information

Basic Details

Basic information about the taxpayer and the audit.

Reconciliation

A reconciliation of turnover as per the audited annual financial statements with the turnover declared in the annual return (GSTR-9).

Tax Payment Reconciliation

Reconciliation of tax payments reported in the financial statements with those declared in GSTR-9.

Input Tax Credit

Reconciliation of Input Tax Credit (ITC) claimed versus ITC eligible as per the financial records.

Auditor Recommendation

Auditor's recommendations on any additional liabilities arising due to discrepancies or non-reconciliation.

Part B

Part B is a certification by the auditor on the accuracy and completeness of the reconciliation provided in Part A.

gst audit procedure that we follow

Evaluation of Internal Controls

Our auditors assess the effectiveness of internal controls and procedures established by management to ensure GST compliance. This includes reviewing internal controls related to transactions such as sales returns, sales on approval basis, and job work. We also evaluate the adequacy of GST records maintained and provide recommendations for improvement.

Records Verification

Our GST auditors verify essential records, including the GST registration certificate, classification of supplies and services, reverse charge entries, purchase register, sales register, stock register, expense ledgers, and both monthly and quarterly returns. This ensures that all records meet legal requirements and are accurately maintained.

Cross-Verification

We perform a cross-check of GSTR-3B with GSTR-1 and GSTR-2A to ensure accurate claiming of input tax credit. This involves verifying the arithmetic accuracy of figures and identifying any discrepancies. Based on our findings, we advise management on necessary adjustments.

Invoice Verification

We review outward invoices to ensure they comply with legal format requirements, check for arithmetic accuracy, and verify correct tax rates based on the goods and services supplied. Additionally, we examine purchase invoices to confirm their eligibility for input tax credit (ITC) and ensure that the claimed ITC matches the recorded credit.

ITC Non-Payment Reversals

Our auditors verify that input tax credit is reversed for invoices that remain unpaid beyond 180 days, ensuring compliance with GST regulations on ITC reversals.

E-Way Bills Compliance

We check the generation of e-way bills for supplies exceeding Rs. 50,000 and transported via motorized vehicles. Our auditors ensure that e-way bills correspond accurately with the invoices.

Industry-Specific Checks

Recognizing that certain GST provisions are industry-specific, our auditors perform additional examinations based on any specific GST requirements applicable to your industry.

Compliance with Recent Amendments

Our auditors review recent changes and amendments in GST laws and regulations to ensure that your business is up-to-date with the latest compliance requirements. This includes evaluating how recent legal updates impact your GST filings and practices and recommending adjustments to align with new regulatory standards.

FAQs About GST Audit

A GST audit is a thorough examination of a business’s Goods and Services Tax (GST) records, filings, and practices to ensure compliance with GST regulations. It involves reviewing financial statements, verifying tax payments and credits, and checking adherence to tax laws.
A GST audit helps ensure that your business complies with GST laws, identifies and corrects discrepancies, and minimizes the risk of penalties or legal issues. It also provides insights to improve GST management and optimize financial accuracy.
GST audits should be conducted annually, typically before the deadline for filing Form GSTR-9C, which is December 31st of the subsequent financial year. It’s also advisable to conduct audits periodically to ensure ongoing compliance and address any issues promptly.
Key documents needed for a GST audit include GST registration certificates, invoices (outward and inward), purchase and sales registers, stock registers, expense ledgers, monthly and quarterly GST returns, and any other records related to GST transactions.
Form GSTR-9C consists of two parts: Part A, which includes the reconciliation statement covering basic details, turnover reconciliation, tax payment reconciliation, ITC reconciliation, and auditor recommendations; and Part B, which is the auditor’s certification on the accuracy of the reconciliation provided.
A GST audit reviews the eligibility and accuracy of ITC claims by verifying purchase invoices and ensuring they align with the GST returns filed. It checks that credits are claimed correctly and that any discrepancies are addressed.