The present article helps to list down some of the important points, like GST registration certificate, verification of invoice prepared under GST law, input tax credit availment as per GST law and job work transaction, to be taken care of while conducting the GST audit.
It is generally assumed by the auditor that the GST registration certificate tends to be okay and most of the auditors generally does not verify the same, however, it is most important to check and verify all the details specified in the GST registration certificate.
The second most important part to be analyzed by the auditor is invoicing under GST. Following are the crucial points which one needs to keep in mind –
|Sr. No.||Annual turnover in the preceding financial year||Number of digits of HSN code to be mentioned in the tax invoice|
|1||Up to 1.50 Crore||NIL|
|2||1.50 Crore to 5 Crores||2|
|3||Above 5 Crores||4|
In Case of Supply of Goods
1. On or before the date of removal, in the case of actual movement of goods.
2. In the case where GST is payable on a reverse charge basis, on receipt of such goods.
In Case of Supply of Services
1. Within a period of 30 days from the date of supply of service.
2. In case of continuous supply, where the due date can be ascertained, 30 days from the due date.
3. In case of continuous supply, where the due date cannot be ascertained, 30 days from the date of actual payment.
4. When there is the cessation of supply before the expiry of the contract, at the time of such cessation.
5. In the case of banking and other financial institutions, the due date will be 45 days
After GST registration certificate and invoicing, the next most important point is to verify the input tax credit availed during the specified period. Following are some of the important points which need to be verified –