With the financial year closing, GST audits are looming on the horizon for eligible taxpayers. A GST audit involves the examination of records, returns, and other documents maintained by a registered person to verify the correctness of turnover declared, taxes paid, input tax credit claimed, and exemptions assessed.
Key Reconciliations
The foundation of a successful GST audit lies in accurate reconciliations. You must ensure the following are perfectly matched: During our audits, we frequently observe businesses making the same fundamental errors. These include claiming ITC on blocked credits under Section 17(5), failing to reverse ITC for non-payment to suppliers within 180 days, and discrepancies in e-way bill generation against actual dispatches. Proactive internal reviews and regular monthly reconciliations are the best defense against adverse findings during a formal GST audit.
Common Pitfalls to Avoid