CA Priyank  Jain

This GST reform will provide huge opportunity to CA’s to perform role of facilitator between the Policy makers, Industry & Trade organization and consumers.

The internal audit can focus areas wherein there could be possibility of tax credit leakage. It may be in the form of excess computation of liability or short availment of tax credit. With the expertise in prevalent indirect taxes and knowledge of business process, CA’s can do well in this area. Internal Audit an provide Assurance to management that all necessary precaution as well as compliance done under GST.

Matching of ITC -Tax Credit reconciliations and liability under reverse charge will be utmost important. Internal Audit can be termed as pre audit also if done before filing of return in firms/ Co’s who afford to take services of CA’s.

In fact, till the time all major issues or crux under GST are involved it is better to consult and have re-check or cross checking of transaction entered and effect on accounting and business as well.

GST will be highly IT driven initiative and systems will have to play important role in the successful implementation of GST. There would be changes required in the ERP or Accounting systems established. Those systems are to be made GST- compliant. CA’s during internal audit would be the facilitator to identify and rectify any shortcoming and do the transactions mapping in the systems

Internal Audit in GST can be done under below mentioned broad head:-

  • Contract Review
  • Impact on Pricing Model
  • Business Structure revamping
  • Supply Chain Management
  • Logistics and Distribution Systems
  • Business process mapping under new tax regime
  • Participation in development of Systems, process and controls
  • Preparation of Accounting Manual and review

More Under Goods and Services Tax


  1. kandarp dholakia says:

    Sir, it seems the role of CAs and CMA in internal Audit is known. Main thing is how to audit, what to audit, frequency of internal audit and most important is the AUDIT MANUAL. Without the audit manual, its difficult for anyone to conduct audit. thus initially, AUDIT MANUAL needs to be prepared before internal audit begins. if anyone has prepared such manual, the same can be shared for the benefit of the membets, who should go thru and keep updating such manual.

  2. sampath says:

    sir, not only ca’s are included as auditors for internal audits , especially cma’s are also included as auditors for internal audits related to gst.
    thank you sir,

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November 2020