GST Audit

GST Audit  

The GST law requires audit of the monthly compliances by way of an audit attached to the Annual Return.  It is critical to for the taxpayers to start focusing on the audit of compliances under GST law and input and output reconciliations form a critical part of the GST audit certification. The audit of Annual return (also known as GST audit) lays the foundation for the first external verification/ assessment under the GST law. 


As part of the annual audit under GST law, our scope of services include the following:

  1. Review of Output liability:
    1. Reconciliation between books and monthly/ quarterly returns (GSTR 1)
    2. Valuation of supply
    3. Sales returns
    4. Classification and rate of tax applicable
    5. Export of goods and services
    6. Sale of Capital assets
  2. Review of Input Tax Credit:
    1. Availing Eligible Input: Assist in maximization of credit availment under GST law.
    2. Payment to supplier: Verification of payments made to suppliers vis-à-vis claim of Input Tax Credit
    3. Reconciliation between books and returns: Verification of ITC claimed as per books and the GST monthly/ quarterly returns (Input claimed in GSTR 3B)
    4. Reversals of excess ITC and interest: Analysis of ineligible transactions and reversal of excess ITC claimed and computation of interest.
    5. ITC reversal: Reversal of ITC on sample sales, wastage etc. and exceptional events like damages, fire accidents etc.
    6. Reverse Charge Mechanism: Scrutinizing ledgers and verification of payment of GST under Reverse Charge Mechanism on taxable transactions.
  3. Compliance
    1. Filing returns: Compliance regarding timing of filing returns and implication of delay
    2. Interest and Penalty: Computation of interest and penalty in case of delays in tax payment
    3. Place and time of supply: Determination of the place and time of supply of goods and services under GST law
    4. Notifications and circulars: Identification of applicable notifications and circulars to the business of client
    5. Annual Return: Filing of Annual Return in Form9C and other statements of particulars as mandated within due date.
  4. Internal Control
    1. Ledger scrutiny: Analysis of transactions for identification of eligible ITC and payment of tax on output liability
    2. Process controls and compliance: Review of the organization structure established for ensuring GST compliance.
    3. Maintenance of records: Review of adequacy and efficacy of records maintained under GST.
    4. Job work: Review internal control mechanism in case of Job Work, Sale on approval basis, Sales returns etc.
    5. ERP Utilization: Analyse of the utilization of ERP and provide recommendations for optimum utilisation of ERP to reduce manual errors and omission.


  • Input Tax Credit
    • Monthly return comparisons with books
    • ITC mismatches, reversals and reclaimed during the year
  • Output Liability
    • Monthly return comparisons with books
    • Reconciliation between value of supplies as per annual return with audited financial statement
    • Percentage of supplies from RCM
  • Internal Control
    • Vendor wise compliance rating
    • Recommendations on efficiency and effectiveness of internal control
  • Compliance
    • Transitional Compliance
    • Cost of non -compliance matrix
    • Annual Return in GSTR Form 9C
    • Other statements and reports as mandated timely by GST law

We, at VJM Global believe in offering qualitative value added services encompassing a comprehensive review of all GST records along with our recommendations on strengthening internal controls for appropriate data entry, data recording, data analysis and data requirements for compliance.  Engage us as your GST auditor and see the difference.

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