The document outlines a comprehensive GST audit checklist provided by ICAI, detailing key areas of focus such as GST registration, invoicing documentation, input tax credit verification, and proper classification of supplies. It highlights the importance of confirming adherence to GST laws regarding transactions, returns filing, and tax payments, alongside thorough checks on job work, refund eligibility, and maintenance of accounting records. Additionally, the document emphasizes compliance with anti-profiteering clauses and scrutiny of unusual transactions.

1. GST AUDIT “AS PER CHECKLIST PROVIDED BY ICAI “

2. 1. GST Registration Certificate
Additional place of
business ”Registration
detail”
any amendment is
required to registration
detail ?
New
Registration or has he
Migrated
check registration details
GSTIN (Godown
Branches, other
places of Business)
Others, if any
Input Service
Distributor must have
separate registration
GSTIN: .

3. Issue of Tax Invoice or Bill of Supply as
per LAW.
Check Tax Invoice for Goods ( On or
Before Delivery )
Tax Invoice for Service shall be issued
within 30 Days from date of supply.
Bill of Supply to be issued in case of
Exempt/ Non GST supply.
In case of New Registration check Revised
invoice Invoice for Advance received
2. INVOICING DOCUMENTATION

4. Check Self Invoice and Payment voucher
for RCM
transactions u/s
9(4) CGST act.
Correctness of Tax Invoice/ Bill of Supply
with Supply register/ GSTR 1
Cancellation of Bill of Supply or Tax
Invoice out of Genuine Reasons
Whether Credit notes and Debit Notes
issued as per GST LAW
Whether Debit Note/ credit note issued
before 30th September of Subsequent
Financial year.
Refund vouchers for refunds of advance
received.

5. Invoice Cum Bill of Supply “If a registered
person is supplying taxable as well as
exempted goods/ services to an
unregistered person, then he can issue a
single “invoice-cum-bill of supply” for all
such supplies”
Debit Notes/ credit notes issue otherwise
than section 34
Check whether series of documents as
per GSTR 1 “ clause 13 “ match with
Books
Delivery Challans/ E-way
Bill register
Verify Transport Documents
E-way
bill register

6. 3. Goods Sent on Job Work
Conditions for claiming
ITC
Delivery Challans
Form itc 04 for quarters
during which goods
sent.
Conditions u/s 143(1)
fulfilled
Supply of any waste/
scrap in case of
unregistered job worker
and payment of tax by
registered person
Check whether goods
sent on job work
returned within
specified time

7. 4. SUPPLY
Proper Classification of Type of
Outwards Supply
- Taxable supply
- Exempt/ Nil Rated
- Zero rated Supply etc.
Check Interstate Supply as per section
7(5) of IGST ACT.
Zero rated supply needs to be verified
with the provisions of law.
Sale of Capital goods respective GST
charge and its return filing.
Identify whether there is wrong
classification of
Inter-state supply as
Intra-state supply and
vice versa
Classification of supply as Composite Supply/
Mixed supplyand its Taxability accordingly.
Check Interstate supply as per
Section 8 of IGST ACT.
Transaction within scope of supply
but not identified by registered
person
Interstate
Goods

8. Check provisions regarding
ABATEMENT whether applicable.
DEEMED Supplies as per SCHEDULE I Goods sent for Job work beyond
specified period treated as Supply.
Check classification of Supply
between Goods and Service done
properly.

9. 5. TIME OF SUPPLY
Check Provisions of T.O.S as per
section 12 and 13 of CGST act
2017.
Verify and analyse the cases where
Continuous supply of Goods or
services and its correct treatment.
T.O.S of Goods sent on approval.
Others
T.O.S provisions for Reverse Charge
need to be checked.
Identify and analyse cases for
Change in rate of taxation as per
Sec 14 CGST act 2017

10. 6. Input Tax Credit
Verify Input Claimed against vendors :
 Bill of Entry
 Tax Invoice
 Debit Note
 Self Invoice
 ISD Invoice
Check entries for Inwards supplies
records with Invoice from Vendors.
Check inwards supplies records with
Monthly returns (3B)
Make List of Restricted Input Tax
Credits
as per GST Law.
Tally Monthly return with ITC
receivable (if any).
Reconcile Tax Collections with
payments and
balance transfer.
Verify availment of Input Tax credit on
Capital Goods.
Check adjustments of Set off by
relevant journal entries.

11. Check reversal of ITC on sale of
Capital Goods.
Check reversal of ITC for goods sent
on Job work. Whether recipient has
made payment within
180 days from
date of invoice.
Check whether ITC debited to
recoverable account
for availing
re credit.
Supplier Cannot avail both benefits i.e
Depreciation
and Input Tax credit.
Verify detail of Recipient (GSTIN,
Name,
Address and
other particulars)
Check reversal of TC on receipts of
Credit Note.
Reversal of common credits as per
Rule 42.
Classification of Input tax credit
between:
 Eligible
 Ineligible
 Blocked credit / common credits

12. Availment of Transitional credit as
per LAW.
Whether any ineligible transitional
credit reversed ?
Reversal of ITC in case of Change in
Scheme from Composition to regular.
Others.

13. 7. INPUT SERVICE DISTRIBUTOR
Separate Registration required.
Others.
Apportionment of ITC
 Eligible
 Ineligible
Whether Calculation of turnover of
branches for allocation of Input as per
GST Law.
Verify ISD invoice for proper
particulars.
Reversal of ITC and issue of Credit
note.
Whether any tax payable under
Reverse charge.

14. 8. CLASSIFICATIONS
Classification Goods/ Services in
conformity with Schedules/
Notifications.
HSN details of Inward and outward
supply needs to be verified.
HSN/ SAC code same as was
followed erstwhile law.
Check whether there is any Change
in Rate of taxation via Tax
Notification or Exemption
notification.
Others.
Verify whether specific advance
ruling applicable.
SAC Code/ HSN code as per Law.
HSN Classification in conformity
with rate of tax on goods/ services.

15. 9. Returns
Review Copies of GST return
filed by registered person.
Interest Due and payment
thereof.
Due date of Transitional credit
return within prescribed time
limit.
Check whether amendment
details correctly file in returns.
Others.
Whether transitional credit
return not filed due to
technical glitches.
Late fee due and paid while
filing return.
Reconciliation of GSTR 9 and
GSTR 1 and GSTR 3B.

16. 10. GST COLLECTIONS AND PAYMENT VERIFICATION
Tax Payable, whether paid within
prescribed time.
Wrong Charge of IGST in place of
CGST and SGST or vice versa.
Verify whether excess collection of
tax been made.
Others.
Check whether provisions of rule 35
of the CGST rules
being followed.
Tax Not collected beyond tax
payable.

17. 11. Reverse Charge
Check whether REVERSE CHARGE
U/S 9(4) paid up to 12th October
2017.
Check reverse charge paid wrongly
i.e. IGST in lieu of CGST, SGST and
vice versa.
Condition for Paying RCM fulfilled or
not.
Verify that Corresponding ITC
availed on
reverse charge.
Check whether Reverse charge tax
on notified supplies u/s 9(3) and
9(5) OF CGST ACT 2017 duly paid.

18. 12. VALUE OF SUPPLY
Verify all the inclusion u/s 15 been
incorporated.
Application of valuation rules.
In case Value of supply inclusive of
GST, check whether taxable value
and tax amount is determined as
per Rule 35 of the CGST rules 2017.
In case of exports, whether rate of
exchange currency determined as
per Rule 34 of CGST rules 2017.
Check whether registered person
claimed PURE AGENT deduction as
per rule 33.
Check whether Discount offered to
customer(pre/post supply) is not
included in value of supply after
fulfilment of conditions u/s 15(3).

19. Check whether rate of tax charged for
supplies is as per GST Rate
notifications.
Check whether Tax collected from
Customers has been entirely remitted
to Government.
Others.
Check whether CGST/SGST/IGST
charged in accordance with Place of
supply rules.

20. 13. PLACE OF SUPPLY
Identification of Supply as Inter/ Intra
state based on
policy document
of entity.
Check whether conditions of Intrastate
supplies are fulfilled as per IGST Act
2017.
Check whether condition for Export of
services has been fulfilled.
Check Zero rated supplies
 With
 Without payment
of taxes.
Check whether conditions for Location
of supplier been fulfilled.
Check imports of :
 Goods
 Services
Check whether condition for Export of
goods has been fulfilled.
Check whether conditions of Interstate
supply fulfilled
as per IGST Act 2017.

21. Whether supplier Intermediary under
GST act and the conditions fulfilled or
not.
Check whether conditions for location
of recipient been fulfilled.
Check whether supply by SEZ to DTA is
treated as inter state
subject to fulfilment
of conditions.
Check whether wrong payment of
SGST/CGST in lieu of IGST made or vice
versa claimed as refund.
Check following supplies reflected in
returns correctly:
 In course of Imports
 Non territory supply
 High sea sales.

22. 14. REFUND
Check whether supplier eligible for
refund as per section 54 ?
Check whether refund rejected or
pending before authority.
Check whether Manual/ Electronic
documents for
refund are verified.
Check whether refund wrongly applied
to Input service/ Capital goods credit
for inverted duty structure.
Check accounting impacts given for
refund applied, pending,
rejected or appealed.
Check whether refund is re-credited to
electronic credit ledger.
Check whether supplier applied for
refund or it is sanctioned.

23. Check whether interest on delayed
refund is receivable.
Check whether Refund and Input tax
credit claimed for
the same transaction.

24. 15. INWARD SUPPLY
Check Purchase Invoice/ Delivery
Challans with the purchase
register.
Check Inward supply with the
Monthly returns.
Make List of Inward supply
invoices for which there is no
corresponding entries In inward
supply records and GST returns.
Check that Purchases of capital
goods are booked as Fixed assets
and GST paid thereon.
Check Sale / deletion of fixed
assets.
Check whether Inward supplies
classified between Intra/Inter
State, Imports etc..
Check whether Input tax credit
added to cost of purchase where
input is not allowable.
Check HSN Wise classification of
Inward supplies.

25. 16. Maintenance of Books of accounts.
To be maintained as per RULES
56,57, 58 of GST Law.
Check Books of accounts
maintained at each
registered place
of business.
Obtain copies of agreements/
agent’s agreement and other
supporting documents.
Check whether transporter/
Warehouse keeper maintained the
books of accounts as per law.
E-way bill register/ Delivery
challan as per GST law.
Obtain copies of Audited
Financial statements
for each registration.
Check in case of electronically
maintained books that whether
the software complies with GST
law ?
Books of accounts maintained
Manually or Electronically ?

26. Usage of E-Way bill should be for
Valid purpose.
Check whether the supplier
maintains the Cash/ Bank Register
for recording the transactions
entity wise.
Check maintenance of books of
accounts is centralised or
decentralised.
Register ITC 01, ITC 02, ITC03 and
ITC 04 maintained as per GST law ?

27. 17. General Points
Check Compliance with Anti
Profiteering clause.
Are there any Departmental
inspections regarding Transitional
credits or any other demands.
Check Adverse points in reports of
previous years.
Check whether any judicial
pronouncement could be
applicable to dealer.
Discuss adverse issues with the
client.
Check assessment orders/
appeals/ orders/ notices issued by
department.
Have any adverse remarks put by
Internal or Statutory auditors or
such other reports.
Check whether reliance placed on
 Notifications/ clarifications
 Advance rulings
 Judgements in respect of tax
rates

28. Obtain Letter of appointment /
and issue letter of acceptance.
Check Miscellaneous receipts,
other incomes.
Notice comments on internal
controls, periodicity of updating of
accounts/ records etc.
Check whether registered person
availed Digital signature facility.
Verify Huge or Unusual inward or
outward supply transactions/ tax
credits/ tax payments.
Check Unusual transactions.