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Know All About GST Audit Checklist FY 2023-24

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May 11, 2023


What’s Inside

Several audits are conducted under the SGST and CGST acts to meet the Act's goals. GST requires taxpayers to assess their GST tax burden, file the suggested returns, and pay taxes following the GST audit checklist. The GST Act specifies a comprehensive audit system to ensure appropriate and accurate filing and taxpayer's tax liability.

Let's dive deeper into this.

What Is The Reason For The GST Audit?

Certain GST taxpayers are required to undergo a GST audit.

  • The GST audit examines the business's records, returns, and other financial papers.
  • Its purpose is to ensure that the recorded turnover is correct and that all GST taxes are paid for the fiscal year 2023-2024.
  • The audit must be carried out, reviewed, and verified by an expert designated and authorised by the GST Act. A Cost or Chartered Accountant, for example, the Commissioner of CGST/SGST, or an officer nominated for this purpose.
  • The GST Act also requires it to assess refunds claimed, input tax credits claimed and other compliances.

GST Audit Checklist

Several items must be checked, verified and ensured compliance by the auditor. These are summarised below:

Interest In GST Late Payments:

The auditor must check that the GST tax liability interest computations are at 18% p.a. and that any late payments are deposited by the taxpayer within the due date.

Reverse Charge Mechanism:

RCM due taxes on supplies of goods or services through the 'Reverse Charge Mechanism' must be paid in cash. Ensure that the ITC for such reverse charges is used during the month it is claimed.

ITC-Availed Bifurcation:

ITC must be appropriately bifurcated and recorded under the various purchase headings. For example, expenses must be divided into categories such as goods, bank charges, employee costs, capital goods, etc.

Non-Payment Of Reversal Of Input Tax Credit Within 180 Days:

Under GST audit turnover legislation for FY 2023-24, the invoice date of supply and the payment date of supplies made can be no more than 180 days apart. If an invoice is not paid within 180 days, the Input Tax Credit (ITC) obtained will be reversed.

Stock Transfer:

If a company has many branches, the intra-branch and inter-branch stock transfers must be reconciled across all branches.

Income Tax Turnover Matching With GST Audit Turnover:

The taxpayer and auditor must ensure that the returns made to the GST and Income Tax authorities on their turnover under the GST Act and the IT Acts are appropriately checked, reported and verified.

GSTIN Turnover Audit:

The GSTIN turnover is validated and verified on a PAN-India basis, demonstrating that all supplies comprise exempted services and goods made throughout India. During a GST audit, the same is confirmed in the GST turnover declared.

Wrapping Up

If your gross receipts and business sales are less than ₹2 crores in any fiscal year, you do not need an audit. However, if your annual turnover exceeds ₹5 crores, you must comply with the GST audit. It is essential to follow the GST audit checklist and the kinds of audits that are required.

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Frequently Asked Questions

1. How do I prepare for the GST audit?

Any registered taxable person with an annual aggregate turnover of more than ₹2 crores during a fiscal year must have their books audited. A CWA (Cost and Work Accountant) or a CA (Chartered Accountant) can audit the qualifying taxpayer's accounts and records.

2. What is the turnover limit for the GST audit?

The GST audit turnover limit is ₹2 crores.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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