GST structure can sometimes become complicated when a business has multiple registrations.
It becomes difficult for all the business units to comply with the GST laws in the entirety, and in some places, the GST laws and regulations get violated.
To address all these issues, a business should prioritize its routine ‘in-house audit’ that identifies such discrepancies in the GST data and helps the company with suggestions to rectify these errors.
But is there such a mechanism for the GST in house audit other than a CA's audit?
Let’s find it out in this short article the seven most important points in the GST audit checklist.
GST Audit Checklist – Why is an internal GST audit required?
Notification No. 29/2021 – Central tax
This notification has amended the CGST act by omitting the Section 35 sub-section (5) of the CGST Act, which mandated the requirement of an audit by a CA or CMA.
It simply means that the businesses are now NOT MANDATED to run audits by CA or tax professionals. Instead, they can self-certify the Form GSTR 9C PDF.
Now the onus of a clean and proper internal audit will fall upon the businesses.
To automate this process and file 100% correct Form GSTR-9C, businesses must have an auditing mechanism that will flag all the discrepancies from the entire year's GST returns and allow the decision-makers to address these issues.
An internal GST audit gives:
But is all this achieved by a manual audit by the team?
Well, you will need a superpower for numbers and that too with 100% accuracy!
The simple answer is that you will have to bring automation into play for an internal GST audit.
An automated GST audit tool = less manpower = more accuracy = lesser time!
7 highlighting features to check in a GST audit tool
1. Software that thinks like a GST expert
2. Not just sampling!
3. Data analysed should be authentic
4. Generates a consolidated report
5. The tool should be fully automated
6. A tool that not just analyses data but also shows red flags
7. Easy integration with your existing GST filing software
These are the highest priority features that a GST audit tool should have to perform a flawless internal audit and give you a complete picture of the business's financial health.
GSTHero’s Third Eye – A desired GST audit tool
GSTHero’s Third Eye is a business diagnostic cloud-based tool that allows you to check and verify every detail of the GST return filing activity.
Third Eye can be an ideal choice for businesses with multiple GST registrations and struggling with GST compliance.
Third Eye provides:
To generate a free audit report of your business, feel free to reach out at:
In a nutshell
It is always better to be ready than to regret later.
This very well sums up the need for a GST audit tool to be ready for all the GST documentation required for GST departmental audit.
Hence, businesses are advised to have a robust audit mechanism that keeps you posted about the discrepancies in your return filing behaviour and suggests corrective actions.
Needless to say, this tool shall positively impact the revenue of the business as the business will save on the files and interests and will also cut down on the GST liabilities paid in cash.
Stay updated: stay ahead!
Until the next time…..
Power to pinpoint every single GST risk exposure and potential loss in the future, right now