CHECK LIST FOR AUDIT REPORT IN CONTEXT OF  GST RETURN GSTR-1 Viz GSTR-3B

Part -A

1. SALES :
1. Check Continuation of Sales Bill serial number from previous month. To check whether any additional bill is made last month after filing the GSTR-1 /GSTR-3B of last month.
2. Check continuous serial number of sales bills this month. Any omissions in between Cancellations, omissions in books has to be noted and handled accordingly in GSTR-1.
3. Documents issued. Documents Cancelled.
4. Check correct rate of tax is applied. Based on customer GSTN whether correct tax IGST (for other state GSTN) /CGST & SGST is charged.
5. Break up for registered and unregistered customers.
6. HSN Code of the product.
7. Quantity of the goods sold.
8. Any Exempted / Nil rated and non GST Sales. Verify whether it is actually exempted/Nil rated or non GST sales.
9. Whether Sales Tallied with books of account maintained by assessee.
10. If Sales exceeds 50000 then Nae and Address of buyer compulsory.
2. OTHER INCOMES :
1. Other Taxable incomes in P&L are liable for GST ?
2. Other Taxable Incomes in Capital A/c and Memo of Income.
3. Vehicle Sales, Machinery Sales where GST applicable ?
3. COMPULSORY RCM :
1. Lorry Freight, Advocate Fees, Etc.
2. If lorry transport is from other state, then Pay IGST RCM.
4. PURCHASE :
1. Correct GSTN and address in the purchase bill.
2. GSTN of the Seller.
3. Whether Purchases tallied with P&L as per books.
4. Other Purchases and Expenses in the Profit and Loss Account.
5. Whether ITC is taken on all purchases and expenses.
6. ITC on Machinery and Vehicle Purchases in Balance Sheet.
7. Whether ITC Taken on RCM paid.
5. DEBIT / CREDIT NOTE :
  1. Correct GSTN and address in original bill.
  2. GSTN of the Seller/ Buyer.
  3. Respected buyer/Seller also raised Debit/Credit Note.
  4. Make Reversal / Add back in Parties GSTR-1 or GSTR-3B.
  5. This allowed upto return of  Sep., 2018.
  6. Make proper serial number  against related Purchase Sales.
6. SPECIAL RECORDS IN CASE OF FOLLOWING :
1. Contractors
2. GTA and Transportation passenger Services
3. Banking / NBFC/ FI Insurance Sectors.
4. ISD\
5. Job Worker and Agents
6. Invoices in case of related Party
7. All the Assessee who use special valuation Methods.

Part – B : REVERSAL OF BLOCKED CREDIT :

1. ITC on Purchased used for exempted sales.
2. ITC on Building Material, labour, Passenger Vehicle.
3. ITC on Life Insurance, Food expenses and other Labour related Exps.
4. ITC on Foods and Beverages.
5. Proportionate Reversal ITC on of Common expenses on Exempted Sales.

Part – C :REVERSAL OF ITC ON PAYMENTS NOT MADE TO SUPPLIER WITHIN 180 DAYS :

1. In the suppliers ledger, Every Month check whether are unpaid Purchase more than 180 days.
2. If yes then reverse the ITC Tax (IGST, CGST and SGST correctly)
3. Calculate interest at 18%

PArt D : PAYMENT :

1. IGST, CGST, SGST, and RCM (against IGST, CGST, SGST), Interest on late payment, late filing Fees and Penalties if any.
2. Interest on reversal of ITC on non payment to supplier.

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Notification on GST GSTR-9C and 9D

Extract of the Letter No. IDTC/Letter/2018-19/13 Dated: 29th May 2018 is as follows:-

“In continuation to the letter no. IDTC/Letter/2018-19/09 dated 9th May, 2018, we are pleased to enclose the GST Audit Report (Form 9C) and Statement of Particulars (Form GSTR 9D) to be furnished along with the Report. These forms have been drafted keep in in mind the aspects of being simple, transparent, easy to comply, to bring awareness among the tax payers and at the same time protect the revenue for the Government. Further, we are submitting two versions of the Statement of Particulars, one is for the tax payer having turnover upto 10 crores; and other is for tax payer having turnover 10 crores and above.

The Institute has developed the aforesaid “GST Audit Formats” for the period ended on 31st March, 2018. We will provide a more comprehensive Form with additional compliances by the Assessee having turnover beyond Rs. 10 crores for the financial year 2018-19.

Sir, the draft Forms captures the information pertaining to the nature of transactions, turnovers and taxes which will provide the Government with an insight into the business practices adopted by the trade and industry, The said audit report read together with the annual return filed by the trade and industry should reflect a true and correct state of affairs of the business entities thus meeting the motto of ease of doing business and ease to comply with the GST provisions, It will not be out of place to mention, that several members of the profession have populated live data into these Forms and feedback has been received that Draft formats are not complex, considering the details that are required to be maintained / furnished under the GST Laws.

Considering this as first year of Audit, it is requested that the Audit Report may be finalised and published at the earliest providing the taxpayers and professionals adequate time for understanding the Audit Format and compliance of the same.

We would also like to inform your goodself that recently, ICAI has also drafted the Certificates to be issued by Professionals as well as the Annual Return Form 9/9A/9B for the Goods and Services Tax Network (GSTN).

We shall be glad to provide any further inputs as may be required and your office in case of any information may reach us at idtc@icai.in or 0120-3045954. “

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Yogesh Parmar have vast knowledge in the field of Goods and Services Tax (GST). He is regularly conducting seminars on GST at various location for business personal to provide the knowledge about impact of GST on their business and how compliance should be made. He is founder of "www.etaxupdates.com" through which he is sharing his knowledge and latest amendments, circulars, notifications etc related to all type of taxes. He is also associated with some software development companies and providing advisory service and help to understand technical aspect of GST. He is also serving as functional manager as well as tester to those company which is developing software for GST.

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