GST Audit Services in Hyderabad

By CA Mahendra Lal & Co. – Your Trusted GST Audit Firm

Comprehensive GST Audit Support

At CA Mahendra Lal & Co., we offer expert-led GST Audit services to ensure your business remains fully compliant with the provisions of the Goods and Services Tax (GST) law. Our audit process is designed to uncover inconsistencies, mitigate risks, and offer actionable insights to enhance the efficiency of your tax processes.

We provide in-depth reconciliation between books of accounts and GST returns, ensuring accurate reporting of input and output tax, appropriate ITC claims, and correct classification and valuation of supplies.

Scope of Our GST Audit Services

Our GST audit team delivers the following:

• Monthly comparison of Input Tax Credit (ITC) between returns and books of accounts

• Detection of mismatches or discrepancies in ITC claims

• Advisory on eligibility, reversal, or re-claim of ITC

• Monthly review of output tax liability

• Reconciliation of supply values in annual returns with audited financials

• Advisory on transactions under Reverse Charge Mechanism (RCM)

• Internal control improvement recommendations

• Cost of non-compliance matrix for risk awareness

• Timely reports and statements as per GST law

What is a GST Audit?

A GST audit is an examination of records, statements, and returns filed by a registered person to verify the correctness of turnover declared, taxes paid, input tax credit claimed, and refunds received. It also assesses the overall compliance with the GST law. It includes preparing and submitting a reconciliation statement (GSTR-9C) reconciling the audited financial statements with the GST annual return.

Applicability of GST Audit

Under Section 35(5) of the CGST Act, 2017, a GST audit is mandatory for every registered person whose aggregate turnover exceeds ₹2 crores in a financial year. The following documents must be submitted along with the GST Annual Return:

1. Audited Financial Statements

2. Reconciliation Statement (Form GSTR-9C)

3. Other prescribed documents

Definition of Aggregate Turnover:

Aggregate turnover includes taxable supplies, exempt supplies, exports, and inter-state supplies of persons under the same PAN. It excludes GST and inward supplies under RCM.

Detailed Checklist for GST Audit

1. Registration

• Verification of registration certificate and business details

• Inclusion of all business premises

• Required amendments and their filings

2. Invoicing & Documentation

• Compliance with invoicing formats under GST

• Issue of tax invoices, bill of supply, receipt vouchers, debit/credit notes

• Proper documentation for e-way bills and delivery challans

3. Supply Classification

• Correct classification of taxable, exempt, non-GST, zero-rated, SEZ, and export supplies

• Identification of inter-state vs intra-state transactions

• Verification of composite vs mixed supply

4. Time of Supply (TOS)

• Compliance with Sections 12, 13, and 14 of CGST Act

• TOS for reverse charge and continuous supplies

5. Input Tax Credit (ITC)

• Reconciliation of ITC claimed with vendor invoices

• Validation of eligible vs ineligible ITC (blocked credit, exempted supplies, capital goods)

• Reversals and payments made within 180 days

• Cross-verification with GSTR-2A/2B

• Transitional credit treatment

6. Classification & HSN/SAC

• Correct HSN/SAC code adoption as per law

• Evaluation of any applicable notifications or advance rulings

7. Input Service Distributor (ISD)

• Separate ISD registration and correct distribution of ITC

• Proportionate allocation of eligible ITC

8. GST Returns

• Review of GSTR-1, GSTR-3B, GSTR-9, and GSTR-9C

• Reconciliation and correction of mismatches

• Interest, late fees, and amendment verifications

9. GST Payments

• Timely and correct tax payments

• Proper adjustment of CGST/SGST/IGST

• Review of excess or incorrect tax collections

10. Reverse Charge Mechanism (RCM)

• Verification of RCM compliance under Section 9

• ITC eligibility on RCM and related accounting treatment

11. Valuation of Supply

• Verification of taxable value inclusions under Section 15

• Proper treatment of discounts and valuation rules

12. Place of Supply

• Correct classification of inter/intra-state and export supplies

• Compliance with LUT/Bond and refund processes

13. Refunds

• Eligibility for GST refunds and application status

• Re-crediting and reconciliation of refund claims

14. Inward Supplies

• Classification and reconciliation of inward supplies

• Verification of ITC claimed vs allowable

• Treatment of theft, damage, or obsolete inventory

15. Books and Records

• Maintenance of required records under GST law

• Manual/electronic documentation checks

• Review of registers for ITC, inventory, and ledgers

16. General Observations

• Anti-profiteering compliance

• Status of any departmental actions

• Evaluation of previous audit findings

• Judicial precedents applicable

• Review of unusual or high-risk transactions

Appointment of GST Auditor

A GST auditor must be a Chartered Accountant or Cost Accountant appointed by:

• Proprietor – In the case of a sole proprietorship

• Partner – In the case of a partnership/LLP

• Board of Directors – In the case of companies

Documents Examined by GST Auditor

• Register of Outward Supplies

• Register of Inward Supplies

• Inventory Register

• Input Tax Credit Registers

• Expense Ledgers

• GST Payables and Payment Registers

• E-Way Bill Records

• Other supporting documents relevant to the audit period

Auditor’s Comments in Form GSTR-9C

If any mismatch or discrepancies are identified during the audit, the auditor is required to comment on them in the reconciliation statement (Form GSTR-9C). The comments ensure transparency and clarity for both the taxpayer and the authorities.

Submission of GST Audit Report

The auditor must report the following:

• Whether records are properly maintained

• Conformity of financial statements with books of accounts

• Accuracy of disclosures in GSTR-9 and GSTR-9C

• Auditor’s observations and recommendations

Penalty for Not Submitting GST Audit Report

While the GST Act does not prescribe a specific penalty for non-submission of the audit report, a general penalty of up to ₹25,000 may be levied under Section 125 of the CGST Act.

Expert GST Audit Services in Hyderabad

If your business is looking for reliable and thorough GST Audit Services in Hyderabad, CA Mahendra Lal & Co. offers unmatched expertise, timely execution, and end-to-end compliance support.

Contact our team today at:
📧 Email: info@camahendralal.com
📍 Location: Hyderabad, Telangana

CA Mahendra Lal & Co. – Bringing accuracy, assurance, and accountability to your GST compliance.