(Last Updated On: November 17, 2018)
KEY PROBLEMS & ISSUE WHILE CARRRING OUT GST AUDIT
Also Refer GST Audit : Free Reference Material
Major problem faced while carrying out GST audit for the financial year 2017-18
- HSN of inward supplies is required in the annual return GSTR 9 which was not needed while filing monthly GSTR 3B.
- Multiple audits under indirect tax laws: VAT audits and Service Tax audit may be required to be carried out for the first quarter and GST audit for the next three quarters;
- The difference in the annual return as per the books of accounts and GST data filed during the financial year.
- Segregated details of ITC availed are required as Inputs/Input services/ Capital Goods
- Reporting of the amended transactions relevant to the FY 2017-18 filed in the returns of April to September of current FY or up to the filing of annual return of FY 2017-18 i.e. 31 Dec 2018, whichever is earlier.
- Complex procedural compliance under GST
- Lack of clarity in the GST law, frequent changes in the law, issuance of more than 300+ notifications;
- Failure of the matching concept – whether it would be possible to identify if the supplier has failed to remit taxes to determine eligibility of credits;
- Reliability of the audit software is not tested;
- Absence of/incomplete mandatory records;
- High volume of procedural lapses and non compliances by the assesses, incorrect documents/documentation procedures;
- Transitional issues (law does address all types of transactions).