GST Audit program – Relevant information required for the audit program

GST Audit program: In the absence of any prescribed format for reporting of information to be furnished after the audit, preparation of the GST audit program would not be complete. However, based on past experience in audits, and considering the applicable provisions of the GST laws, one can start preparing the audit program and finalise the same once the reporting requirements are notified.

GST Audit program

The audit program may be prepared considering the various aspects to be covered in the report, i.e., checks to be performed to verify the following:

  • Whether the books of account and related records maintained are sufficient for verification of the correctness, completeness and accuracy of the returns;
  • Whether the annual return filed reflects the correct figures and includes all the transactions effected during the year that require disclosure;
  • Whether the value of outward supplies, and inward supplies declared in the annual return includes all the outward supplies and inward supplies, respectively, effected during the year;
  • Whether the inclusions and exclusions to / from the value of supply are in accordance with the provisions of the law;
  • Whether the exemptions claimed in the annual return are in conformity with the provisions of the law;
  • Whether the amount of ITC determined as eligible and ineligible have been determined in accordance with the provisions of the law;
  • Whether the classification of outward supplies, rate and amount of tax thereon, and nature of tax, is correct;
  • Whether the other information given in the return is correct and complete

Further, other relevant information which the audit program should cover are listed as follows:

  • General profile and brief nature of the industry/ business of the assessee;
  • GST Registration details, additional places of business, registrations in other States, details of authorized signatories / persons in charge;
  • List of accounts and records maintained, and information on software used;
  • Details of outward supplies, exports, supply to SEZ, tax paid under RCM, supplies without consideration, etc.;
  • Details of outward supplies involving works contracts, composite supplies, mixed supplies and continuous supplies;
  • Provisions of time and place of supply of all outward supplies of the auditee;
  • Determination of transaction value and value of supply in accordance with the Valuation Rules;
  • Compliance with the conditions for availment of credits, proportionate credit availed, ineligible credit reversal, payment to suppliers, etc.
  • Details of goods sent for job work and receipt of the same along with details of the process / treatment carried out during the job work;
  • ISD and cross charging;
  • Details of exemptions claimed and compliance of the conditions therein;
  • Payment of taxes and refunds claimed, compliance with related conditions;
  • Departmental correspondences, notices and related compliances;
  • Relevant applicable standards/ guidance notes as available; and
  • The major analytical ratios