Annexure 14: Ratio Analysis & Trend Analysis

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..... should apply the ratio of [ITC availed : Total tax paid through Electronic cash ledger + tax paid through Electronic credit ledger]. In this case, The result is 70/(2+70) = 70/72 = 0.972, i.e. 97.2%. The result on such higher side may be of various reasons including accumulation of high stock resulting in accumulation of ITC. But, if the RTP is a reseller without having significant warehouses, or if the goods dealt in are perishable in nature, the issue of stock holding will not stand good. This should ring a bell in the audit officer's head that there may be a case of: * wrong availment of input tax credit on goods/services in excess including claiming of input tax credit on inputs used in exempted products. * under valuation of g .....

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..... rd supply income as non-taxable outward supply income. * Inflation of inward supply credit. Some of the indicative ratio analysis and trend analysis as follows may be carried out by the audit officer RATIO ANALYSIS I. BASED ON RETURN DATA Sl. RATIO 2017-18 2018-19 2019-20 i) Inward supply value : outward supply value       ii) EWB value of inward supply : EWB value of outward supply       iii) Non-GST Turnover : Total Turnover       iv) Exempted Supply value : Total Turnover       v) Value of Goods Sent for Job Work : Total Turnover       vi) ITC on inward supply : Total inward supply       vii) Total ITC avail .....

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..... Sl. PARTICULARS 2017-18 2018-19 2019-20 a) Total Turnover       b) Total Zero Rated (Exports) Supply,       c) Supply to SEZ       d) Deemed Export       e) Total Exempted Supply       f) Total NIL rated Supply       g) Total Non-GST Supply       h) Total Taxable Outward Supply       i) Total Inward Supply subject to Reverse Charge       j) Total Tax payable on Outward Supplies       k) Additional Tax paid by DRC-03 (Annual Return)       l) GST of a particular goods/service vis-a-vis overall growth of that industry. .....

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..... ward supplies vis-a-vis exempted supplies       g) Movement of inward supplies vis-a-vis total production       h) Movement of inward supplies for goods manufactured on job-work vis-a-vis total production       III. ANALYSIS FOR MANUFACTURER AS WELL AS RESELLER OF GOODS Sl. PARTICULARS 2017-18 2018-19 2019-20 a) Difference in ITC taken & ITC available on purchase of raw materials        b) Job work income as per P&L Account or Trial balance        c) Movement of inward supplies vis-a-vis total outward supply        IV. ANALYSIS FOR SUPPLIER OF SERVICES Sl. PARTICULARS 2017-18 2018-19 2019-2 .....

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