GST Audit
Assistance & Representation Services
A GST Department Audit is a review conducted by tax authorities to verify the correctness of a
taxpayer’s GST returns, payments, and compliance with GST laws. HIVA Professionals helps you
prepare for these audits, ensuring accurate reporting, proper Input Tax Credit (ITC) claims, and
strict adherence to statutory requirements.
What is GST
Department Audit?
A GST Department Audit is an official examination conducted by GST authorities to verify the
accuracy of a taxpayer’s financial records, GST returns, and overall compliance with GST laws.
The audit ensures that the correct tax has been paid and Input Tax Credit has been properly
claimed as per regulations.
Who Needs GST Department
Audit?
- Registered taxpayers with high turnover exceeding the prescribed limit under GST law.
- Businesses selected by the GST authorities for compliance verification.
- Taxpayers claiming significant Input Tax Credit (ITC) or complex transactions.
- Companies with interstate supplies or multiple branches requiring detailed audit scrutiny.
- Any taxpayer whose returns or accounts are flagged for discrepancies by the GST department.
Types of GST Audit
01
Turnover-Based Audit (Sec 35(5))
Applies to businesses exceeding ₹2 crore turnover. Requires
self-certification of GSTR-9C to reconcile tax payments and ensure compliance.
02
Departmental Audit (Sec 65)
Conducted by GST authorities at business premises or tax office.
Taxpayers receive 15 days’ notice, and the audit is completed within 3 months
(extendable to 6 months). Findings are communicated via Form GST ADT-04.
03
Special Audit (Sec 66)
Triggered when authorities suspect discrepancies or fraud. Conducted by a
CA or CMA appointed by the Commissioner, with a report submitted within 90 days
(extendable). May lead to additional tax liability or penalties.
Documents Required
- GST Returns
- Sales and Purchase Invoices
- Input Tax Credit (ITC) Details
- Profit & loss statements, balance sheets and
accounting records
- Bank Statements
- Contracts, agreements, stock records and other
(if applicable)
- Others
Step-by-Step GST Audit
Process
Basic Steps:
- Taxpayer is informed 15 days in advance about the audit. Document preparation and
reconciliation
- Audit includes GST returns, invoices, tax payments, ITC claims, and ledgers. Response
drafting to audit queries
- The audit must be finalized within the prescribed time limit.
- Findings, including tax liabilities, discrepancies, or penalties, are documented.
- Authorities may impose penalties or demand additional taxes if any issues are identified.
Advantages and
Limitations
Advantages
- Helps businesses verify that GST returns, payments, and ITC claims are accurate.
- Encourages proper maintenance of invoices, ledgers, and financial statements.
- Early detection of discrepancies reduces the risk of fines or legal issues.
- Provides a clear assessment of tax liabilities and business compliance.
Limitations
- Audits require preparation, document submission, and coordination with authorities.
- Many businesses require accountants or GST experts to manage the audit process.
- On-site audits may temporarily affect regular business operations.
- Discrepancies found during the audit can lead to extra taxes, interest, or penalties.
Why Choose HIVA Professionals?
-
Expert audit handling
Efficient management of your GST audit for accurate reporting.
-
Strong compliance management
Ensures complete GST records and statutory adherence.
-
Professional representation
Handles all audit queries with authorities.
-
Reduced penalty exposure
Minimizes errors and potential fines.
-
End-to-end audit support
From initial document prep to final closure, we provide hassle-free
assistance.
