• Input Tax Credit (ITC) claimed
  
  
• Tax payments made
  
  
• Compliance with GST laws
  
  

The purpose of a GST audit is to ensure that the turnover, tax paid, ITC claimed, and refund availed are accurate and in line with GST laws.

📘 Legal Basis – GST Audit under the CGST Act, 2017

🧾 1. Departmental Audit (Section 65)

Conducted by the GST Department (Proper Officer) to verify the correctness of:

• Turnover declared
  
  
• Taxes paid
  
  
• ITC claimed
  
  
• Refunds received
  
  

📋 Key Steps:

1. Audit Notice (Form ADT-01) is issued at least 15 days prior to audit.
   
   
2. Audit must be completed within 3 months, extendable by 6 months.
   
   
3. Findings are communicated in Form ADT-02.
   
   

✅ Our Role:

• Review all filings and reconcile data before audit
  
  
• Respond to department queries and notices
  
  
• Represent client during departmental hearings
  
  

🧾 2. Special Audit (Section 66)

Initiated when the GST officer suspects:

• Undervaluation of goods/services
  
  
• Excess ITC claimed
  
  
• Tax evasion or incorrect classification
  
  

Conducted by a Chartered Accountant (CA) or Cost Accountant appointed by the department.

📋 Key Steps:

1. Officer issues order in Form ADT-03 for special audit.
   
   
2. Taxpayer must cooperate and provide all records.
   
   
3. Audit report submitted within 90 days (extendable).
   
   

✅ Our Role:

• Prepare and organize all accounting and GST documents
  
  
• Assist the appointed auditor during review
  
  
• Clarify complex transactions and justify valuation
  
  

🧾 3. Voluntary / Internal GST Audit

While not mandatory for all businesses, voluntary audits help identify:

• GST return mismatches (GSTR-1 vs GSTR-3B vs GSTR-9)
  
  
• ITC reversals and ineligible credits
  
  
• Unreported supplies or excess tax payments
  
  
• Reconciliation gaps in E-way bills and invoices
  
  

✅ Our Role:

• Conduct detailed reconciliation audits
  
  
• Identify potential non-compliance
  
  
• Recommend corrective actions before departmental audit
  
  

📄 Documents Required for GST Audit

1. Business Documents

• GST Registration Certificate
  
  
• PAN, TAN, IEC, MSME certificates (if applicable)
  
  
• MOA/AOA or Partnership Deed
  
  

2. Financial Records

• Audited Financial Statements
  
  
• Trial Balance, Ledger, and Balance Sheet
  
  
• Profit & Loss Account
  
  

3. GST Records

• GSTR-1, GSTR-3B, GSTR-9, GSTR-9C (if applicable)
  
  
• E-Way Bill summary
  
  
• Invoices for sales and purchases
  
  
• ITC reconciliation statements
  
  
• Stock register and purchase register
  
  

4. Bank & Other Details

• Bank statements
  
  
• Input-output ratio statements
  
  
• Expense vouchers and supporting documents
  
  

🧮 GST Audit Process – Step by Step

Step 1: Pre-Audit Preparation

Collection and review of GST filings, invoices, and accounting data.

Step 2: Reconciliation

Cross-check between:

• GSTR-1 (Outward supplies)
  
  
• GSTR-3B (Summary return)
  
  
• GSTR-9 (Annual return)
  
  
• Books of accounts
  
  

Step 3: Verification of ITC

Check for eligible and ineligible Input Tax Credit as per Section 17 of CGST Act.

Step 4: Audit Execution

Verify classification of goods/services, place of supply, HSN/SAC codes, and valuation.

Step 5: Reporting & Recommendations

Prepare a detailed audit report highlighting discrepancies, corrective steps, and compliance suggestions.

Step 6: Submission / Representation

If conducted by the department, file response or clarification within the stipulated timeline.

💰 GST Audit Fees (Indicative)

(Fees depend on turnover, business complexity, and scope of audit.)

📊 Key Areas Covered in GST Audit

✅ Outward supply & turnover verification
✅ Input Tax Credit (ITC) review
✅ Reverse charge mechanism (RCM) compliance
✅ GST rate classification
✅ E-way bill reconciliation
✅ Refund claim validation
✅ Exempt supply audit
✅ Time of supply and place of supply verification

✅ Benefits of Conducting a GST Audit

• 🧾 Ensures Complete Legal Compliance
  
  
• ⚖️ Detects and Prevents Tax Leakages
  
  
• 📋 Improves Recordkeeping Accuracy
  
  
• 🚫 Avoids Penalties & Legal Disputes
  
  
• 💼 Strengthens Internal Controls
  
  
• 📈 Builds Credibility with Stakeholders & Regulators
  
  

⚠️ Consequences of Non-Compliance

🏛️ Legal References

• Section 65 – Departmental Audit
  
  
• Section 66 – Special Audit
  
  
• Rule 101 – GST Audit Rules
  
  
• Form ADT-01, ADT-02, ADT-03 – Audit-related forms
  
  

🌟 Why Choose Team GBC for GST Audit Services?

✅ Experienced Chartered Accountants & GST Professionals
✅ Comprehensive Turnkey Audit Solutions
✅ Accurate Data Reconciliation & Reporting
✅ Representation Before GST Authorities
✅ Transparent & Affordable Pricing
✅ Post-Audit Advisory for Corrective Action
✅ PAN India Support – 100% Digital Process

🏁 Conclusion

A GST Audit is not just a compliance formality — it’s a critical tool for identifying financial irregularities, improving efficiency, and safeguarding your business from penalties.

At Team GBC, we ensure that your GST audit is accurate, compliant, and insightful, empowering you with clarity and confidence in your financial and tax operations.

📞 Contact Team GBC today for professional GST Audit & Compliance Services and ensure your business stands strong under every scrutiny.

💼 Team GBC – Your Trusted Partner for GST Audit, Compliance & Tax Advisory in India.