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TMI BlogDraft audit programme for GST AuditX X X X Extracts X X X X X X X X Extracts X X X X ..... Draft audit programme for GST Audit X X X X Extracts X X X X X X X X Extracts X X X X ..... artment * Correspondence with department on Trans 1 credit disallowance if any (specifically ask for it and record) * Capital goods credit balance 50% under Excise and 1/3rd or 2/3 rd under VAT should be verified * How Cess is handled in the transition. As per department Cess cannot be carried forward in GST. If company carries document it and ask for their stand on the same 3 GSTR 3B * Whether GSTR 3B has been filed for all the months - July 2017 to date * Verify all the returns individually and no test check of the same * Verify the correctness of the physical copy with the portal numbers and match the same * GST Liability to be classified separately as IGST, CGST and SGST * Verify how this is derived - books of accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Whether the liability shown in GSTR 3B matches with the books of account * If not is there any reconciliation and if available please take a copy of the same as our document * GSTR3B liability should match with liability shown in GSTR 1 * Discuss how the discrepancy comes on the same * GL balances should be captured and take a screen shot of the same for our records * GL balance should always show credit balance and if any debit balance is there record it and ask for explanation * Check the 3B return status in the portal, submitted or filed status * Check the GST portal for any queries raised by the department on line and what action taken by the client 4 GSTR1 * Whether GSTR1 has been filed for all months - July 2017 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o date * Verify the physical copy with the portal numbers for correct upload of data * Check all the returns for correct filling of all the columns, IGST not updated as local and vice versa * Verify how the purchases from unregistered dealers handled * Verify how the SEZ or Export transactions are reported * Cross verify the rate of tax applied with the tariff headings * State code - whether correctly filled up * On a random basis check the GST registration of customers in the portal for correctness of the same * Check the status of the return - Submitted or filed * Open the dash board and verify whether all the returns are appearing in the portal * How the data is extracted from the company's books - manually or downloa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded automatically. * If Excel download is used verify the no. of document control of the Excel and company's records * Counter check the documents updated in GSTR 1 form with the Excel download or company's record - Missing documents to be captured clearly * Match the sales reported in GSTR 1 and the company records * In case of difference whether any reconciliation is prepared and why * Check how the difference is handled by the company * How debit or credit notes handled in the GSTR 1 system * Price revisions before GST how handled - no tax charged or erstwhile excise and service tax charged * Price revisions post GST how handled - whether correct rate of GST charged. Compare the rate with the original rate charged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice * Documents for issuing credit note or debit note - approval process and how the same is accounted by the company * Compare the company's books and GST records for debit note or credit note * JsOne tool how handled - whether Govt site or private software used - if private software used then carefully check whether all transactions are uploaded properly in the portal * The liability quantified in GSTR 1 - local and IGST must match with the liability quantified in GSTR 3B * 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. * Check whether Tally is closed each month and verify the same for three months ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the period of audit * 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 5 Input credits * Verify the input credit disclosed in GSTR 3B under CGST, SGST and IGST * Verify whether the same reflects in company's books of account and matches * If there is difference record the same and ask for explanations * If rectified subsequently document the same - today there is no concept of interest but may come at a later date * Capture the % of input credit to the GST liability and record it * Whether the GL of the company has separate codes for input credit separately for CGST, SGST and IGST - if not it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be opened separately * Again for more than one state separate IGST GL codes to be opened * IGST should be used for SGST and CGST and not vice versa - check this aspect * Ineligible credits as per the GST act should be strictly followed - verify this * In case of deviations please record the same and bring to the notice of the concerned in GST * Credit should not be availed for purchases from vendors on composition scheme * Capital goods credit should be availed fully and not at 50% or 1/3rd as per prior provisions * Inter plant movement and depot movement should be with GST document and GST payments only. Check whether the same is followed and credit availed in the other plant or depot * Sub-contract movement will no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t entail credit availment unless he provides GST invoice * Import IGST will be eligible for credit and verify the same with Bill of entries * 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 * How does the client verify whether the vendors have filed their GSTR 1 returns - Process to verify and document * For those not filing the returns what steps the company takes to ensure that they file and the credit availed is legal and correct * Is there any check for ensuring the vendors making GST payments on monthly basis - If so record the same * Rejection of materials - How handled in GST - Whether the client raises the rejection debit note with GST an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reverses the credit or not * 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 * Manufacturing rejection how handled - Debit note raised with GST or not * If so on what basis the invoice no. of the vendor is captured and debit note raised * Credit for capital goods should be reduced from the cost of assets and depreciation to be provided only on the net - check this aspect both from Company Law and Income tax aspects * Disposal of capital goods would not entail reversal of credit but only charging GST under the GST regime. Let not client reverse any input credit for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same 6 Documents * Invoice to be as per the format given in GST rules * Input invoice should satisfy the same - otherwise credit can be denied * E Way bill to be raised as per rules - documentation for tracking the same * Sub-contract movement - what document is raised and how tracked * Whether the company stores the returns in a separate folder or print outs kept in files - recommend storage in soft form in a separate folder * Trans 1 credit document to be preserved * Get in writing from the company the places where the client's materials are kept - input materials and output materials, inventory and sub-contract locations. - verify whether these are captured in the RC * Any change in director or partner or owner should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be intimated and changes to be incorporated in the RC
* Clear back up work sheets for GST liability including IGST, input credits and net liability to be maintained for each month X X X X Extracts X X X X X X X X Extracts X X X X
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