GST

1. Office of the Principal Accountant
General (Audit-I), Karnataka
SSCA on ‘Department’s oversight on
GST Payments and Returns filing’

2. Time schedule
Sample
size
Response
s received
Interim
replies
Final
repli
es
AOs
issue
d
AQs settled Replies under
verification
Limited
Audit
428 240 179 61 7 25 29
Sample
size
Desk
Review
Complet
ed
No of
dealers
GST
audit by
Depart
ment
assigne
d
No of
dealers
GST
audit
complet
ed by
Depart
ment
No of
dealers
who
produce
d
records
complet
ely
No of
dealers
who
produce
d
records
partially
No of
cases
where
detailed
audit
complet
ed
No of
Audit
Observa
tions
issued
Money
value
Detail
ed
Audit
100 9 3 1 1 2 1 4 49.14
lakh
Sample size No of offices
which
furnished
Proforma
information
No of offices
where range
audit
commenced
No of offices
where range
audit
completed
Range
Audit
21 NIL 6 ---

3. Constraints
• AQs were issued based on data given by core team. Figures
in GST Prime 2 were different and now GST Prime 3 was
introduced from July 4th 2022 after continuous persuasion
from this office with regard to incomplete data in returns
and ledgers. It was noticed that there is variation in certain
figures again in GST Prime 3. Hence, there is complexity for
saving Key Documents.
• Response to Limited Audit – Mostly replies received are
interim i.e., ASMT 10 issued. In some cases, GSTIN is
already assigned to audit and hence the LGSTO is merely
forwarding the LA AQ to the concerned Audit Office
without initiating action at their office. Receipt of replies in
such cases will be delayed till disposal of audit for the
GSTIN. Time factor for closing Limited Audit is uncertain.

4. Constraints
• Detailed Audit – Furnishing of records by dealers is very poor and
time consuming inspite of constant perusal. In cases where case is
already assigned to audit, dealers are refusing to furnish records to
our Audit Party.
• Range Audit -
• Offices have stated that information as in proforma is not
maintained in their office and cannot furnish as called for in the
proforma.
• (a) Scrutiny – No scrutiny functions exercised till December 2021 –
No audit checks will be conducted.
• (b) Late Filers and Non-filers - The report of non-filers in GST Prime
is constantly updated and has only those GSTINs which have not
filed returns as on date. Hence, methodology of selection of
sample and size of sample for verification of action taken on non-
filers of July 2017 to March 21 needs to be finalised.

5. Constraints
• (c) DGARM reports – Not applicable to State GST
Offices. MIS Reports generated on similar lines
but no specific instructions to LGSTOs on
quantum of cases for which action was to be
initiated. Hence, no further audit checks will be
exercised.
• (d) Cancellation of GSTINs - No bifurcation of suo
moto cancellation and on request of taxpayer
available. List is cancelled as on date; details of
GSTINs whose cancellation has been revoked is
not available.