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GST Audit Services
Under GST, businesses must audit their monthly compliances alongside the Annual Return. It's essential for taxpayers to prioritize the audit of their GST compliances, as input-output reconciliations play a vital role in the GST audit certification. The GST audit, tied to the Annual Return, serves as the first step toward external verification and assessment under the law, ensuring accuracy and compliance with GST regulations.
At Bhanushali & Bhanushali, we offer complete GST audit services to ensure compliance with GST laws. Our team reviews your GST records, identifies discrepancies, and provides recommendations to enhance internal controls for efficient and accurate reporting.
1. What role does a GST audit play in ensuring compliance with output liability and input tax credit (ITC)?
The GST audit for output liability examines the reconciliation of books with returns (GSTR 1), checks the correct supply valuation, and verifies tax classifications. It also reviews sales returns, exports, and capital asset sales, ensuring output compliance with GST regulations.
For Input Tax Credit (ITC), the audit ensures maximum credit eligibility, cross-checks supplier payments, and reconciles ITC claims with returns (GSTR 3B). It addresses excess ITC reversals, interest calculations, and adjustments for events like wastage or damages, while verifying Reverse Charge Mechanism payments for proper compliance.
2. What key elements are assessed in a GST compliance check, including return filing and applicable notifications?
The GST compliance review focuses on timely return submission, calculating interest and penalties for delayed payments, determining the correct place and time of supply, and identifying relevant notifications and circulars that impact the client's business.
3. What internal controls are reviewed for GST compliance?
The internal control review under GST involves examining ledgers for eligible ITC and output tax payments, assessing compliance processes, evaluating record-keeping efficiency, and checking controls for job work, approval-based sales, and returns.
3. What are the main outcomes of a GST audit?
• Input Tax Credit (ITC) involves comparing monthly returns with records to identify and correct any mismatches.
• Output liability involves reconciling monthly returns with records, annual supply values with audited financials, and reviewing RCM supplies.
• Internal control involves assessing vendor compliance and providing recommendations to enhance control efficiency.
• Compliance involves reviewing transitional adherence, evaluating non-compliance costs, verifying GSTR Form 9C, and ensuring timely report submission.