Audit under GST is the process of examination of records, returns and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed, and input tax credit availed, and to assess the compliance with the provisions of GST.
Benefits of GST Audit –
- Goods & Service taxes are charged and collected at effective GST rates as the year has seen many adjustments in the tax levels of different products.
- Account records are held in compliance with the manner set forth under the ACT.
- The invoices were collected appropriately (i.e. keeping complete information).
- Matching the GST returns for account books.
- GST electronic credit & cash register equal to the tax reflected in the accounts.
- Find if there is any not stated GST input tax credit. Eg: bank charges, sundry cost bills like printing & paperwork, etc.
- Noting down of fixed assets accumulated on taxable appraisal and enabling the usage of the necessary GST input tax credit in such a manner that GST ITC may be implemented accurately, totally, and also the tax benefit depreciation can be calculated.
- The payment that is due under the reverse tax, is for a few different facilities.
- Reversal of any ITC that has been, or is probable to be, wrongly reported.
- For the exporters, claiming the correct reimbursement for the input tax charged.