Introduction: GST is new for everyone. It came to effect from 1st July 2017. As the corporate industry has implemented GST in their business, audit for the same is a must. We here came up with some of the checklists for newly implemented GST.
Following are the general GST matter checklist for Audit Purpose:
A. For Apr to June 17 Transactions:
| 1. | Input credit reflected in ST 3/ VAT / ER 1returns for all purchases Up to Jun 17 |
| 2. | Capital goods received before Jun 30, 17 -has 50% credit been taken? |
| 3. | Is disputed credit availed before appointed date? |
| 4. | Is service tax on RCM paid fully where applicable? Like Lawyer fee, Manpower consulting, etc. ( UP to June’17) |
B. Display/Registration/Masters:
| 1. | Is Certificate of registration prominently displayed in all locations where business was done? |
| 2. | Is GSTIN no. Included along with the name of the business in displays? |
| 3. | Does Customer/ Vendor master have PAN no.? /GSTN no. in all cases? |
| 3A. | Is PAN No. tying up with the name as per PAN card? |
| 4. | Is Company GSTN no. Advised to all our suppliers so input tax credit can be taken? (Including telecom company, Banker, etc.) |
| 5. | Does company invoice provide all required details as per law? |
| 6. | Is invoice format having all details prescribed? |
C. GST matters from Jul 1, 2017:
| 1. | Are all Job work locations added as places of business in Company registration? |
| 2. | Is GST on RCM paid for all job work charges and purchase of goods and services from unregistered dealers subject to the maximum non-taxable limit of Rs.5000/- per day on Intra-state supplies received? (Notification-Central Tax-8/2017 at 28.06.17) |
| 3. | Are job work goods not returned being tracked correctly and followed up as they would be treated as Sales after 180 days? |
| 4. | Is GST paid on all stock transfers and input credit obtained? |
| 5. | Is there a proper record. Monthly credit of all eligible inputs taken as per books with GSTR 2? |
| 5A. | Is timely action taken on all differences? (max time limit for correction two months) |
| 5B. | Is action taken to blacklist such suppliers who do not pay in time/ file returns in time? |
| 6. | Is GSTR 1 tallied with books of accounts? |
| 7. | Is credit taken of TDS at 1% done on all transactions with Govt /local bodies? |
| 8. | Are anti-profiteering guidelines issued under S 171 complied? |
| 9. | Is 100% credit taken on all capital goods purchased from Jul 1, 17? |
| 10. | Who are the suppliers who pay a composite tax of 1% (Rs 20-75 lakhs turnover) where Company incurs additional cost due to non-availability of ITC? Is this in order? |
| 11. | Are all goods returned within six months when rejected as otherwise no ITC can be taken? |
| 11A. | What is the Company system to follow up/control this? |
| 12. | On all advances is GST paid and set off later when invoicing done? |
| 12A. | Are advances and GST paid in advance reconciled monthly? |
| 13. | Are invoices issued before removal / delivery of goods? (sometimes companies retain goods till they receive payment) this will also affect cut off at period ends |
| 14. | Is refund of Input tax credit applied for all exports and sales to SEZ? |
| 15. | Are GST payments made in time? |
| 16. | Check to ensure SGST ITC is not utilized against CGST and vice versa |
| 17. | Are all GST related accounts in ledger reconciled monthly? |
D. Returns:
| 1. | Are monthly/annual returns filed in time? |
| 2. | Do monthly returns tie up with books of accounts? |
| 3. | Does company have a system to retain all GST related documents/ records for at least 72 months from the due date of furnishing annual return normally and if there is any pending proceeding, then one year from the end of final disposal of appeal? (Sec 36 & Proviso to Sec 36 of CGST Act) |
The author is a practising CA based in Delhi and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.
Disclaimer: The views expressed in this article are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.
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Still there is something important missing.
like product or services of client. codes. tax rate.
what special records are to be maintained? for e.g.in excise, some special registers were maintained. if exempted product or service what type of documents required to be obtained and records to be maintained?
What are the important things to check when we do the audit pf sales and purchase under GST Act
Ver well written. Helpful
Thanks Sir. for this post
A GOOD ONE