Area wise working / checklist for annual return and GST audit
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 26-11-2018
Area wise working / checklist for annual return and GST audit
As this is first year of annual return and GST audit, registered person as well as professional are also in dilemma situation for fulfilling the compliance under GST law so that the requite information which is required in filing the annual return and GST audit could be prepared in time and order.
In this regards I have prepared areas wise working plan/checklist which prescribed the requisite documents and actions for the annual return and GST audit.
GST REGISTRATION CERTIFICATE
* Have you checked whether the Supplier has applied for New Registration or has he Migrated?
* Have you checked the registration details of: Registered Person, Business Verticals, Factory / Warehouse / Godown, ISD and in respect of other place of business?
* Whether GSTIN is displayed in Name Board
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* Whether refund voucher is issued for refund of advance received?
* Whether Credit note/ Debit notes are issued as per the provisions of the GST law as per section 34?
* Whether Credit note/Debit Note is issued before 30th September of the Subsequent Financial Year?
* Have you checked correctness of Tax Invoice /Bill of supply with the appropriate Supply Register/ GSTR 1?
* Whether the Tax Invoice/Bill of supply is cancelled for genuine reasons, if any like Name of party /details where applicable?
* Whether any Invoice cum Bill of supply is raised for specific transactions?
* Whether the transport documents are maintained and verified?
* Whether any copies of Credit Note and Debit Note are raised otherwise than as specified in section 34?
* Whether the Delivery challan/E- way bill Register is maintained?
* Whether Series of documents issued as per clause 13 of GSTR 1 matches with Books of Account from July 2017 to March 2018?
GOODS SENT TO JOB WORK
* Whether the
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xport and Merchant Export etc. are appropriately classified under GST law?
* Whether any transactions which falls within the scope of supply has not been identified by the registered person
* Have you checked Interstate supply as per section 7(5) of IGST Act 2017?
* Have you checked Intra State supply as per section 8 of IGST Act 2017?
* Whether the Zero-rated supply is verified as per the provisions of the law?
* Whether the supplies made by registered person falls within the meaning of Composite /non- composite/ Mixed supply? If yes, whether the same has been offered to tax as per section 8 of CGST Act?
* Have you checked for sale of capital goods and the GST charged and as to whether they are included in the returns filed ?
* Whether Interstate supply is regarded as Intra state supply and vice versa?
* Whether abatement provisions, if any, are applicable (like one third for land) is compiled with?
* Whether the transactions are correctly classified as supply of goo
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cked the inward supplies records with Monthly return and ascertained reasons for variations, if any?
* Have you made a list of restricted input tax credit items as per the GST law?
* Have you tallied monthly return with Input tax credit receivable, if any?
* Have you reconciled tax collections with payments and transfer of the balance to appropriate accounts?
* Have you checked adjustment of tax set-off by relevant journal entries?
* Have you checked that input tax credit on capital goods is correctly availed?
* Whether Input Tax credit is reversed for the sale of capital goods as specified in GST law?
* Any Reversal of input tax credit for the goods sent for job work?
* Whether the recipient of supply has effected payment for such inward supply within 180 days from the date of Invoice?
* Whether input tax credit availed is debited to recoverable account for availing re-credit?
* Whether the supplier has availed both benefits of depreciation and input tax credit?
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STRIBUTOR
* Whether separate registration is taken as per Provisions of law?
* Whether any tax is payable under reverse charge and obtained separate Registration?
* Whether eligible and ineligible input tax credit is apportioned as per the GST law?
* Is there is any reversal of Input tax credit and credit note is issued?
* Whether the calculation of Turnover for allocating the input tax credit is as per the law?
* Whether the ISD invoice containing the relevant particulars is issued correctly as per the provisions of the law?
CLASSIFICATIONS
* Whether the classification of goods/ services is in conformity with the Schedules / Notifications?
* Whether the HSN classification is verified to confirm the rate of tax on goods and services?
* Whether the HSN details for inward and outward supply are verified?
* Whether the SAC code/HSN code is as per the law?
* Whether the HSN /SAC classification is same as followed in erstwhile law if applicable?
* Is there any speci
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ax payer charged wrongly IGST in place of CGST/SGST or vice versa?
* Have you followed the provisions of Rule 35 of the CGST Rules in respect of collection of taxes?
* Is there any excess collection of taxes?
REVERSE CHARGE
* Whether reverse charge tax is paid under 9(4) of the CGST Act 2017 up to 12th October 2017?
* Whether Reverse charge tax on notified supplies under section 9(3) and 9(5) of the CGST Act 2017 is duly paid?
* Whether reverse charge tax has been paid wrongly in lieu of CGST/SGST as IGST or vice versa?
* Whether corresponding input tax credit is availed on Reverse charge?
* Whether conditions of paying tax for RCM are fulfilled?
VALUE OF SUPPLY
* Whether all the inclusions to the value of supply as per section 15 of the Act have been verified?
* Whether discount offered to customers (pre/ post supply) is not included in the value of supply after fulfilment of conditions under section 15(3) of the Act?
* Whether valuation rules have been applied a
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export of goods are fulfilled?
* Whether the conditions are fulfilled for export of services?
* Whether there are any imports of goods/import of services?
* Whether the Zero-rated supply is with or without payment of taxes?
* Whether the conditions for location of supplier are fulfilled?
* Whether the supplier is intermediary under the GST Act and the conditions are fulfilled?
* Whether the supplier has declared sale in course of Imports, Non- territory supply, High Sea supply in the Return correctly?
* Whether the conditions for location of recipient are fulfilled?
* Whether the wrong payment of tax i.e. IGST in lieu of SGST/CGST is claimed as refund?
* Whether the wrong payment of tax i.e. SGST/CGST in lieu of IGST is claimed as refund?
* Whether the Supply by SEZ to DTA is treated as inter-State subject to fulfilment of conditions?
REFUND
* Whether the Supplier is eligible for Refund as per section 54?
* Whether the supplier has applied for Refund and wheth
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in inward supply records and GST return?
* Have you checked that inward supplies are classified between intra-State, inter-states, Imports etc.?
* Have you checked that purchases of capital goods are booked as fixed assets and the GST is paid thereon? Have you checked Assets which have depreciated 100%?
* Have you checked sale / deletion of fixed assets?
MAINTENANCE OF BOOKS OF ACCOUNTS
* Whether books of accounts are maintained as specified in section 35 r/w Rules 56, 57 and 58 of the GST Law?
* Whether Books of accounts are maintained electronically manually?
* Whether books of accounts are maintained at each place of business?
* Whether books of accounts are maintained manually or electronically? If the same is maintained electronically, whether the software used complies with the requirements of the law?
* Whether the copies of Agreements/Agent agreement and other supporting documents are obtained?
* Whether the copies of Audited Financial Statements for each reg
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ernal/ Statutory auditors or any other such reports?
* Have you checked for any adverse points in reports in the previous year?
* Have you checked that assessment orders /APPEAL orders/notices issued by the department if any?
* Is there any judicial pronouncement that could be applicable to the dealer?
* Have you discussed any adverse issues arising out of the audit with the client?
* Have you obtained the letter of appointment / issued the letter of acceptance of audit?
* Have you come across any unusual transactions?
* Have you checked miscellaneous receipts / other income?
* Have you come across any huge or unusual inward or outward supply transactions / tax credits /tax payments etc.?
* Have you noticed any comments on internal controls, periodicity of updation of accounts / records etc.?
* Whether the registered person has availed the facility of digital signature?
* Whether the Auditor has used appropriate Audit tools?
(Mr. Sandeep Rawat has vast experience
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