Management Representation Format for Certifying GSTR 9C – GST Audit U/S 35(5)
Definition of Audit given under Section 2(13) of CGST Act 2017, envisages, auditor should verify the correctness of Turnover Declared, taxes paid, refund claimed, ITC availed and assess compliance with provisions of GST Law.
While carrying out certification for Form GSTR 9C, auditor is required to ensure that he has obtained reasonable audit evidence to certify in Form GSTR 9C that:
- - In my/our opinion, proper books of accounts are maintained
- Financial Statement are in agreement with books of account
- Particulars given in Form GSTR 9C are true and correct
As per Standard on Auditing issued by ICAI, SA 580 “Written Representation” - Audit evidence is all the information used by the auditor in arriving at the conclusions on which the audit opinion is based.
Written representations are necessary information that the auditor requires in connection with the audit of the entity’s financial statements. Accordingly, similar to responses to inquiries, written representations are audit evidence. Written representations are an important source of audit evidence.
Management representation is a letter issued by a client to the auditor in writing as part of audit evidences. This article contain sample draft format of Management Presentation for GSTR 9C Certification. This is only suggested format for information and knowledge of audience. This should not be construed as any legal advice.
[Comment - The date of the document must not be later than the date of audit work completion]
ABC & Associates,
Sub: Letter of Management Representation for conducting GST Audit and Certifying Form GSTR 9C for the financial year ended March 31, 20xx (GSTIN : --------------------------- )
[Comment – It is recommended that in case of Multi GSTIN Taxpayer, mention his GSTIN number all applicable places in MR]
This is with reference to the GST audit, to be conducted by your firm, and as required under the provisions of section 35(5) and section 44(2) of the Central Goods And Service Tax Act, 2017 / State Goods and Service Tax Act 2017 (Referred as “GST Act / GST Law” in this document) read with Rule 80(3) of the Central Goods and Service Tax Rules (In short “CGST Rules, 2017”), of our firm M/s -------------------------Pvt Ltd, having GSTIN -----------------------, Address -----------------------------, for the financial year ended March 31, 20xx, we acknowledge our responsibility for the maintenance of books of accounts, related documents, relevant registers in accordance with the requirements of the GST laws and as per the recognized accounting standards and practices as issued by the ICAI.
This letter is provided to you in connection with, the conduct of audit by your firm under the GST Laws, and for the purpose of carrying out the attest function in Form GSTR 9C based on
our letter of engagement dated ---------------- and your acceptance letter dated ---------------.
We confirm to the best of our knowledge and belief that:
Place of Business:
- We are operating our business from address mentioned in our registration certificate. We do not have, any other place of business, other than those stated in Registration Certificate, during the year under audit.
- We confirm that all places of business with respect to our GSTIN number, is stated in our Registration Certificate.
- Particulars mentioned in our registration certificate are correct.
- We have affixed GST Registration Certificate at prominent place of each business place as well as mentioned in all name board exhibited at all places of business.
- We have undertaken supply from only place of business, as mentioned in Registration. We have not affected any supply of goods or services or both, from places other than those declared in the certificate of registration.
- We have recorded all taxable supplies, Zero Rated Supplies, Exempt Supplies in books of accounts and paid GST on the same, as applicable.
- Wherever we have exported goods or services, duty free, we have submitted Letter of Undertaking, as per applicable provisions and procedure, before undertaking the exports.
[Comment – Clause b is applicable only if there is Exports]
- We have paid GST, on receipt of advance, against supply of taxable services and against supply of goods, as applicable.
[Comment – Clause c is applicable only if there is Exports]
- All kinds (inter-State and intra-State) of supplies / supply returns including sale of assets, if any, have been duly classified and properly accounted for in books of accounts.
- We have correctly classified our outward supplies into B2B and B2C category and disclosed in our monthly GST Returns.
- The Deemed supply transactions as per Schedule I of GST Law viz., supplies to Related Parties or supplies between distinct entities / distinct persons are properly valued and recorded in books of accounts. All transactions / supplies with related parties or distinct persons has been recorded in books and there are no transaction/supply with related parties/distinct person, which are not accounted in Books of Accounts.
[Comment – Clause d is applicable only if there is transaction with Related Parties / Distinct Person]
- Wherever, we have carried out Exempted Supply or Supply at concessional rate of tax, we have ensured that, we have complied with required conditions of applicable GST Provisions / Notification
[Comment – Clause g is applicable only if there is Exempted Supply or Merchant Export Supply at 0.01%]
- All Inward Supply with respect to above GSTIN, are recorded against said GSTIN in books of accounts.
[Comment – Clause a is applicable only if it is Multi GSTIN Tax payer]
- Reverse Charge liability on inward supplies, as applicable, as per provisions of GST Law are properly accounted and recorded in books of accounts.
- In case of taxable inward supplies, wherever input tax credit of GST is admissible, it is properly availed and accounted in the relevant register.
Input Tax Credit
- We have availed ITC as per condition laid down by Sec 16 of GST Act that is, credit is availed after receipt of goods / services and on the basis of Invoice/debit note issued by supplier.
- Whatever ITC is availed by us, it is with respect to above mentioned GSTIN only. We have not availed any ITC under above mentioned GSTIN, which is common for all GSTIN under our PAN or which belongs to another GSTIN under our PAN
[Comment – Clause b is applicable only if it is Multi GSTIN Tax payer]
- We confirm that, we have not availed Input Tax Credit or reversed availed Input Tax Credit, in respect of inward supplies effected by us, where we have not paid the supplier within a period of 180 days, in terms of proviso to section 16(2) of the CGST Act 2017, except invoices if any, provided to you separately during audit.
- We confirm that we have not taken any input tax credit in respect of goods/Services restricted in terms of section 17(5) of the CGST Act.
- Wherever goods are lost/destroyed/written off/ disposed as free sample or gift, its ITC is reversed by us or not availed.
- We confirm that input tax credit availed by us, are in respect of use in course or furtherance of business. Wherever ITC is availed on goods/services, it is not used for personal purpose.
- We are in possession of all original tax invoices of inward and copy of outward supplies issued and we have availed input tax credits based on such original invoices relating to inward supplies.
- ITC of GST paid on Reverse Charge Liability is properly availed as per provisions of GST Law and on the basis of Self Invoice issued by, as required by Rule 36(1)(b) of CGST Rules 2017.
- If input/input services/capital goods are used for Taxable supply and exempted supply or exclusively for exempted supply, its ITC is reversed/not availed as per provisions of sec 17 of CGST Act 2017.
- We have claimed transitional credits as per the provisions of the GST laws.
[Comment – Clause a is applicable only if Transitional Credit is claimed]
- We confirm having complied with the provisions of section 171 of the CGST Act in respect of Anti-profiteering.
- Transitional provisions given under Chapter XX of CGST Act 2017, wherever applicable, are compiled by us.
[Comment – Clause a, b, c is applicable only for F.Y. 17-18]
- We confirm that, we have issued proper Invoice, Bill of Supply as applicable for supply of service, as per the provisions of the GST law.
- Provisions of E Way Bill as given under GST Law are complied with.
[Comment – Clause b is applicable from F.Y. 18-19]
- We have issued the Self-Invoice as per Sec 31(3)(f) of CGST Act 2017, in respect of transactions that are liable to tax on reverse charge in case of inward supplies effected from unregistered suppliers.
[Comment – It is recommended that auditor should keep some sample RCM invoice copies with him as audit evidence of verification]
- Whenever applicable, we confirm that we have maintained appropriate stock records as required under the GST laws.
[Comment – It is applicable for Goods Industry or Service Industry having stock of goods as Inputs.]
- We have issued only One Original Tax Invoice / Bill of Supply / Debit Note or credit Note as the case may be, and all other copies are marked as Duplicate / Triplicate etc.
- We have prepared the monthly returns based on the books of accounts maintained.
- We have maintained the relevant records in respect of goods sent to / received from job workers and correctly accounted those transactions. We confirm that all goods sent to job workers have been received back within the timelines prescribed.
- Provisions of Job work as given under GST Act, are complied with.
[Comment – This clause is applicable only Tax Payer is sending / receiving goods for Job work.]
- We confirm that, we have correctly classified the activities (i) as supply of goods and / or supply of services as per Second Schedule of GST law, (ii) Composite Supply / Mixed Supply and (iii) into correct HSN / SAC Code, in accordance with the applicable schedules of GST Rate notifications issued under GST Act.
- The accounting policies adopted by us are set out and elaborated in Notes to Accounts attached to the financial statements.
- We confirm that we have adhered to the provisions relating to time of supply of goods and time of supply of services in terms of section 12 and Section 13 of the GST Act, 2017.
- We confirm and reiterate that while we have our books and records in compliance with the applicable statutes. However, we are not in a position to furnish the State-wise financial Statements for review / audit purposes. Internally we have maintained separate records GSTIN wise of Inward and Outward Supply.
[Comment – Clause c is applicable only if it is Multi GSTIN Tax payer]
- During the year, no application for Advance Ruling has been sought by us under GST Law.
For -----------------------------Pvt Ltd
This is only suggested format for information and knowledge of audience. This should not be construed as any legal advice. It is only for educational purpose.