GST Audit Selection Criteria & Documents To Submit

The Goods and Services Tax (GST) is our country's most significant tax reform, and it is now mostly stable, but the assessee is still dealing with some issues and compliances that must be completed. It has been observed in recent years that the audit is carried out by the department that issues the notices. The books of accounts are scrutinized, as well as document verification in accordance with the books of accounts, with reconciliations performed following the filed returns, tax rates, and claimed refunds. The GST audit must address the claimed and used ITC and other related issues.

GST Audit Selection Parameters:

GST audit is to be implemented based on specific risk parameters and computerized techniques. Several risk parameters can be identified in the audit selection process, as listed below:

1. The volume of the assessee's turnover.
2. Revision of the assessee's turnover in comparison to the previous year.
3. More frequent occurrence of supplies, excluding providing the e-way.
4. ITC varies greatly between GSTR 3B and GSTR 2A.
5. The assessee does not provide periodic returns but does provide the E-way bill.
6. Analyze the financial ratio.
7. The amount of the assessee's refunds.
8. Assessee who seeks exemptions or declares bankruptcy.
9. Specific information was obtained from other government officials such as Income Tax, ROC, and others.

Documents to Tackle GST Audit Requirements:

1. The audited financial statements include the directors' and audit reports.
2. Tax audit report and 26AS Form.
3. Income tax refund details.
4. Production records deal with the separation of raw materials and finished goods.
5. Advances received and paid information.
6. Records pertaining to ITC claimed and used, along with relevant reconciliation statements.
7. Names of suppliers and customers, along with full addresses.
8. The opening balance, supply, receipt, goods stolen, lost, or destroyed, and the closing balance in the Stock Register are all recorded in the Stock Register.
9. Tax invoices, purchase bills, receipts, credit and debit notes, payment vouchers, and bills of supply are all examples of delivery challans.
10. Various details are required by law and deemed appropriate.