In case of Multi Location entities, what should be the specific area of examination under GST ?
Ans. Audit of Multi Location entities would require examination (among others) of the following:
i) Cost incurred commonly at or by the Head Office – E.g. Marketing and Brand Building Costs;
ii) Head Office providing support to Branches – E.g. Centralized Accounting Services; HR Services etc.,
iii) Branches without billings to third parties;
iv) Branches with billings to third parties;
v) Identification of Branches which have not been registered;
vi) E-Way bill to track supplies which have been marked as stock transfers;
vii) Credit of ‘State A’ availed in ‘State B’ especially in cases of where the place of supply is State B (E.g. Accommodation Services of employee of ‘State A’ availed as credit in ‘State B’);
viii) Basis of bifurcation of credits into ISD;
x) Valuation of Supply especially when credits are not available in the hands of the receiving Branches.