Knowing about the importance of GST audits and refunds

GST or Goods and Service Tax is a form of Indirect Tax that is comprehensive and is levied on every value addition. This means that this tax is imposed at every point of sale and in case intra state sales are involved then the goods would be imposed with a Central GST and a state GST.

What do you mean by GST audit?

GST audit basically refers to auditing the reports that are maintained by a taxpayer who has registered under GST. An important check point in auditing the reports would be reconciliation of the same in the books so as to avoid the GST evasion.

What is the GST audit checklist?

The GST audit checklist would include the following components in which the company would need to maintain the compliance:

  1. The interest and penalties in GST act according to which the recipients is able to claim an extra tax credit input and this he would need to make a payment of interest at the rate of 24 %.
  2. In case the auditors come to know about the data gaps, then there could be an amendment made in GSTR.
  3. It is also important to check all the particulars of the invoice.
  4. The input tax credit would be reversed if not paid within 180 days.
  5. It is important to review the e-way bill and matching the same with the invoices.
  6. And finally, cross checking of pending stocks with job workers.

What is GST refund?

GST always encourages that funds flow smoothly and everything remains in compliance till the end, and in order to encourage this overall process, it is important that the government should provide a hassle free GST refund process especially to those companies whose capital has got tied up in the exhausting refund process.

How to file for GST refunds?

Once you have identified your GST claim for refund then you would need to file the claim using the refund form. This form is required to be prepared by a certified CA and the form should also made made within a 2 years time of the relevant date of the refund application. The relevant dates can be found online or would be advised by the CA who is preparing the form. is one such company who has experienced CAs that can help you to carry on the process effectively.

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