24/08/2017
Introduction: GST is new for everyone. It came to effect from 1st July 2017. As the corporate industry has implemented GST in their business, audit for the same is a must. We here came up with some of the checklists for newly implemented GST.
Following are the general GST matter checklist for Audit Purpose:
A. For Apr to June 17 Transactions:
| 1. | Input credit reflected in ST 3/ VAT / ER 1returns for all purchases Up to Jun 17 |
| 2. | Capital goods received before Jun 30, 17 -has 50% credit been taken? |
| 3. | Is disputed credit availed before appointed date? |
| 4. | Is service tax on RCM paid fully where applicable? Like Lawyer fee, Manpower consulting, etc. ( UP to June’17) |
B. Display/Registration/Masters:
| 1. | Is Certificate of registration prominently displayed in all locations where business was done? |
| 2. | Is GSTIN no. Included along with the name of the business in displays? |
| 3. | Does Customer/ Vendor master have PAN no.? /GSTN no. in all cases? |
| 3A. | Is PAN No. tying up with the name as per PAN card? |
| 4. | Is Company GSTN no. Advised to all our suppliers so input tax credit can be taken? (Including telecom company, Banker, etc.) |
| 5. | Does company invoice provide all required details as per law? |
| 6. | Is invoice format having all details prescribed? |
C. GST matters from Jul 1, 2017:
| 1. | Are all Job work locations added as places of business in Company registration? |
| 2. | Is GST on RCM paid for all job work charges and purchase of goods and services from unregistered dealers subject to the maximum non-taxable limit of Rs.5000/- per day on Intra-state supplies received? (Notification-Central Tax-8/2017 at 28.06.17) |
| 3. | Are job work goods not returned being tracked correctly and followed up as they would be treated as Sales after 180 days? |
| 4. | Is GST paid on all stock transfers and input credit obtained? |
| 5. | Is there a proper record. Monthly credit of all eligible inputs taken as per books with GSTR 2? |
| 5A. | Is timely action taken on all differences? (max time limit for correction two months) |
| 5B. | Is action taken to blacklist such suppliers who do not pay in time/ file returns in time? |
| 6. | Is GSTR 1 tallied with books of accounts? |
| 7. | Is credit taken of TDS at 1% done on all transactions with Govt /local bodies? |
| 8. | Are anti-profiteering guidelines issued under S 171 complied? |
| 9. | Is 100% credit taken on all capital goods purchased from Jul 1, 17? |
| 10. | Who are the suppliers who pay a composite tax of 1% (Rs 20-75 lakhs turnover) where Company incurs additional cost due to non-availability of ITC? Is this in order? |
| 11. | Are all goods returned within six months when rejected as otherwise no ITC can be taken? |
| 11A. | What is the Company system to follow up/control this? |
| 12. | On all advances is GST paid and set off later when invoicing done? |
| 12A. | Are advances and GST paid in advance reconciled monthly? |
| 13. | Are invoices issued before removal / delivery of goods? (sometimes companies retain goods till they receive payment) this will also affect cut off at period ends |
| 14. | Is refund of Input tax credit applied for all exports and sales to SEZ? |
| 15. | Are GST payments made in time? |
| 16. | Check to ensure SGST ITC is not utilized against CGST and vice versa |
| 17. | Are all GST related accounts in ledger reconciled monthly? |
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About the author
HIMANSHU TIWARI
CHARTERED ACCOUNTANT
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