Before moving straight towards the GST Audit Checklist, we need to know what is GST audit and the GST compliance checklist under GST and the procedure to get GST audit checklist in excel:
This type of GST audit takes place when the aggregate turnover of the taxpayer exceeds the 2 Crore INR mark. The taxpayer needs to appoint a CA or CWA for a turnover based audit.
This type of GST audit takes place when the order is passed by the GST Commissioner, however, the taxpayer gets a minimum 15 days prior notice for such audit. A general audit is done either by CGST/SGST Commissioner or any other person authorized by the GST Commissioner.
This type of GST audit takes place when the order is passed by the deputy or assistant commissioner, however, such officers need to take prior approval of the GST Commissioner and prepare GST internal audit checklist. To perform a special audit the GST commissioner can appoint CA or CWA as may be required.
Here is the GST checklist for audit, GST audit procedure and how to do GST audit with GST audit form and GST Audit checklist pdf.
There are two important things that will get covered under how to do GST audit step by step and this point in GST audit checklist ICAI for internal audit:
In some cases, it is found that the taxpayers try to manipulate the figures and take excess Input Tax Credit (ITC). So, the taxpayer needs to reconcile the GSTR 3B with GSTR 2A to ensure that the taxpayer is not claiming excess Input Tax Credit (ITC). In case if the taxpayer has claimed any ITC in excess then he or she needs to pay interest and penalty as may be prescribed.
In case if the GST auditor finds any mismatch between the GSTR 3B and GSTR 2A then in such a case the auditor needs to direct the management to amend the invoices at summary levels in GSTR 1 by filing GSTR-1A.
Format of invoices plays a very crucial part in GST and that is why there are specific GST rules for the same too. In case if the invoice format varies, the GST auditor can advise the management to amend the invoice structure or format as may be prescribed. There are many incidents where the taxpayer was using different invoices structure. So, keeping this in mind the Government has introduced e-Invoicing where the invoice schema will remain the same throughout.
At the time of auditing, the taxpayer shall keep the following condition in mind to reverse ITC for non-payment:
As we already know under GST Regime, the taxpayer can move goods from one place to another only after generating an e-way bill. So by reconciling the e-Way Bills data with invoices, the auditor can determine if there is any bogus entry made in the records by the taxpayer. However, there are instances where the goods are transported in non-motorized vehicles. In such cases, the generation of the e-way bill is not required. Hence, the auditor needs to closely scrutinize all the invoice level data too.