How GST taxpayers is selected for Audit by GST Officer

By | November 23, 2018
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(Last Updated On: November 23, 2018)

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.

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