Draft audit programme for GST Audit
By: – Rajagopalan TS
Goods and Services Tax – GST
Dated:- 18-1-2019<\/p>\n
AUDIT PROGRAM FOR GST AUDIT
\n1 Preliminary
\n * Check GST registration certificate
\n * Cross check the name of the entity with PAN or Company incorporation certificate
\n * Check for single registration or multiple registration – ask for documentation
\n * Name board to contain GST registration
\n * Ask client to log on to GST portal and verify whether it is active still
\n2 Transition
\n * Verify the June 2017 returns of Service tax, Excise and VAT
\n * Take stock of the closing balances as per those returns
\n * Verify whether it is reflecting in the Trans 1 statement
\n * Verify the documentation for Trans 1 filing with the department
\n * Correspondence with department on Trans 1 credit disallowance if any (specifically ask for it and record)
\n * Capital goods credit balance 50% under Excise and 1\/3rd or 2\/3 rd under VAT should be verified
\n * How Cess is handled in the tr<\/p>\n
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\n * Check the GST portal for any queries raised by the department on line and what action taken by the client
\n4 GSTR1
\n * Whether GSTR1 has been filed for all months – July 2017 to date
\n * Verify the physical copy with the portal numbers for correct upload of data
\n * Check all the returns for correct filling of all the columns, IGST not updated as local and vice versa
\n * Verify how the purchases from unregistered dealers handled
\n * Verify how the SEZ or Export transactions are reported
\n * Cross verify the rate of tax applied with the tariff headings
\n * State code – whether correctly filled up
\n * On a random basis check the GST registration of customers in the portal for correctness of the same
\n * Check the status of the return – Submitted or filed
\n * Open the dash board and verify whether all the returns are appearing in the portal
\n * How the data is extracted from the company's books – manually or downloa<\/p>\n
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\n * The liability quantified in GSTR 1 – local and IGST must match with the liability quantified in GSTR 3B
\n * Cut off procedure – last document no. for each month as per books accounts and first document no. for the next month – take for Aug 2017, Nov 2017, Jan 2018 and March 2018.
\n * Check whether Tally is closed each month and verify the same for three months during the period of audit
\n * In case of SAP please verifiy whether period closing is done and ask the concern to open the system and show that the period closure is done. Take a screen shot for our records
\n5 Input credits
\n * Verify the input credit disclosed in GSTR 3B under CGST, SGST and IGST
\n * Verify whether the same reflects in company's books of account and matches
\n * If there is difference record the same and ask for explanations
\n * If rectified subsequently document the same – to<\/p>\n
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\n * Import IGST will be eligible for credit and verify the same with Bill of entries
\n * Take a listing of vendors of the client with GST nos and check whether client has such a list and updation frequency to be verified
\n * How does the client verify whether the vendors have filed their GSTR 1 returns – Process to verify and document
\n * For those not filing the returns what steps the company takes to ensure that they file and the credit availed is legal and correct
\n * Is there any check for ensuring the vendors making GST payments on monthly basis – If so record the same
\n * Rejection of materials – How handled in GST – Whether the client raises the rejection debit note with GST and reverses the credit or not
\n * In the alternative for full rejection of invoice client need not avail credit and also raise debit note for rejection. In this case the transportation of materials could be a problem and how handled – verify this
\n * <\/p>\n
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