What are Parameter for selection of GST taxpayers for Audit
Following parameters can be adopted for selection of GST taxpayers for audit:
Parameter No 1 :-
Taxpayers maintaining excess IPT continuously during the year.
Parameter No 2 :-
Taxpayers showing fall in taxable turnover in spite of increase in purchase continuously for two return periods.
Parameter No 3 :-
Taxpayers showing low gross profit which is not in tune with the line of business.
Parameter No 4 :-
Taxpayers whose Sale/Purchase ratio is less than 1.0 over last 12 months.
Parameter No 5 :-
Taxpayers conceding substantial quantities of closing stock as compared to purchase and sales.
Parameter No 6 :-
Works Contractors.
Parameter No 7 :-
Manufacturing units showing G.P less than 10%
Parameter No 8 :-
Taxpayers showing substantial changes in trade practices – eg:-
- excessive stock transfer,
- material decline in interstate purchases,
- material increase in exports/sales to exporters.
Parameter No 9 :-
Taxpayers having Complex transactions such as :-
- Exports,
- Consignment sales,
- Branch transfers,
- Transit sales etc.
Parameter No 10 :-
Based on Third party information like, Banks, Income Tax, Service Tax, Central GST, Manufactures, other Government departments etc.
Parameter No 11 :-
Based on local intelligence or serious complaints from public
Parameter No 12 :-
Taxpayers dealing in evasion prone commodities showing less growth by 10% from average growth rate in that area of circle jurisdiction.
Parameter No 13 :-
Return defaulters and cancelled taxpayers having active transactions as per GSTN data.