AUDIT PROGRAM FOR GST AUDIT

It's Time for GST Audit  and before starting the GST Audit you know to understand the area of audit and  things to be taken care so that you can certify the GST Audit report as per the requirement of GST. Because here is no option to give reasonable Assurance here you need to certify the report.

Following Are the things you need to Care.

AUDIT PROGRAM FOR GST AUDIT

1.       Preliminary Audit

Ø  Check GST Registration and Certificate

Ø  Cross check Name of Entity with PAN or incorporation certificate

Ø  Check for number of registration and ask for documents.

Ø  Login GST to check whether still Active or not.

2.       Transitional Provision

Ø  Verify the June return of Service Tax, Excise and VAT

Ø  Take closing stock as per those returns.

Ø  Verify whether it is reflected in TRAN-1 statement

Ø  Verify the documents file with respect to TRAN-1 with Department

Ø  Correspondence with department on TRAN-1 credit disallowed if any (specifically asked for it and record)

Ø  Capital Balance 50% under excise, and 1/3^rd or 2/3^rd under VAT should be verified.

Ø  How cess is handled in transition. As per department cess cannot be carried forward in GST. If company carried document it ask for their stand on the same.  

3.       GSTR 3B

Ø  Whether GSTR 3B has been filed for all the month –July to date

Ø  Verify all the return individually and no test checks of the same.

Ø  Verify the correctness of the physical copy with the portal numbers and match the same.

Ø  GST Liability to be classified separately as IGST, CGST and SGST

Ø  Verified how this is shown in the books of accounts.

Ø  Whether the Liability shown in GSTR 3B match with the books of Account

Ø  RCM paid up to the date of October 2018

Ø  GST on Advance payment (If applicable……..)

Ø  If not is there any reconciliation and if available please take a copy of the same as our document

Ø  GSTR 3B liability should match with the liability of GSTR-1

Ø  Discuss how the discrepancy come on the same

Ø  Ask for the GL balance ledger and check if any debit balance the ask for the clarification

Ø  Check the status of return whether filed or submitted on portal.

Ø  Check any query raise by department in Action to be taken on portal.

4.       GSTR-1

Ø  Whether GSTR-1 has been filed from Month july-2017 to the date

Ø  Verify the physical copy with the portal number for correction upload of date.

Ø  All the return was filed in respective column, IGST not updated as Local and Vice Versa.

Ø  Verify how sales from unregistered dealer handle.

Ø  Verify the reported SEZ transactions are reported.

Ø  Cross verify the rate of Tax applied with the Tariff heading.

Ø  State code correctly filled up.

Ø  Test checks some of Customer GST on portal.

Ø  Check the status of return whether filed or submitted on portal.

Ø  Verify the number of document with portal and books.

Ø  Missing document should be document clearly.

Ø  Match the sale with GSTR-3B and GSTR-1

Ø  Mismatch asks for reconciliation.

Ø  Check debit and credit noted

Ø  Cutoff procedure has been followed.

5.       Input

Ø  GST Input to be classified separately as IGAT, CGST and SGST along with bifurcation as per expenses head and tax rate.

Ø  Verified how this is shown in the books of accounts.

Ø  Whether the input  shown in GSTR 3B match with the books of Account

Ø  If not is there any reconciliation and if available please take a copy of the same as our document

Ø  GSTR 3B Input should match with the Input of GSTR2A

Ø  Discuss how the discrepancy come on the same

Ø  Ask for the GL balance ledger and check if any debit balance the ask for the clarification

Ø  Check the status of return whether filed or submitted on portal.

Ø  Check any query raise by department in Action to be taken on portal.

Ø  Expenses disallowed but input Tax credit not reversed on the same.

Ø  Proportionate disallowance of input tax on some expenses related to the Business.

Example 20% disallowance of telephone expenses.

6.       Documents to Verify.

Ø  Invoice to be as per the format given in GST rule.

Ø  Input invoice should satisfy the same. Otherwise credit should be denied.

Ø  E-bay bill should be checked.

Ø  Tran documents should be preserved.

Ø  Sub contract movement document to be checked in case of movement of Goods.

Ø  MRL for the place where documents are preserved and registered office.

Ø  Any change in significant ownership should be disclosed.

Things to take care before starting GST Audit
https://www.taxclub.online/2020/01/things-to-take-care-before-starting-gst.html