GST Audit & Reconciliation

What is GST Audit & Reconciliation?

GST Audit & Reconciliation is a critical corporate requirement in India. At Atlaz, we ensure your business remains 100% compliant with government regulations. Engaging a professional service for your GST Audit & Reconciliation mitigates legal risks, optimizes operational efficiency, and establishes a foundation of trust with stakeholders and regulatory bodies.

Aspect With Professional Support Without Support
Compliance Speed Accelerated Prone to delays
Legal Risk Mitigated High
Cost Efficiency Optimized Hidden Penalties

Expert GST Audit, Annual Return (GSTR-9), and Reconciliation (GSTR-9C) services to prevent ITC mismatches and departmental notices.

Thorough Guide to GST Audit & Reconciliation

A GST Audit involves the detailed examination of records, returns, and other documents maintained by a registered taxpayer. The objective is to verify the correctness of the turnover declared, taxes paid, input tax credit (ITC) claimed, and refunds processed, ensuring absolute alignment with the Goods and Services Tax Act.

While the mandatory GST audit by a CA (via Form GSTR-9C) has been replaced with self-certification, businesses with an aggregate turnover exceeding Rs. 5 Crores are still required to file the reconciliation statement in Form GSTR-9C. Given the complexity of GST laws and strict departmental scrutiny on ITC mismatches, engaging an expert for an internal GST audit and reconciliation is highly recommended.

Our team conducts a thorough health check of your GST compliance. We reconcile your books of accounts with GSTR-1, GSTR-3B, and GSTR-2A/2B to identify any short payment of tax or excessive claim of ITC, preventing hefty penalties and interest down the line.

Information Required

  • Audited Financial Statements (P&L and Balance Sheet)
  • Copies of filed GSTR-1, GSTR-3B, and GSTR-9
  • GSTR-2A and 2B reports for the financial year
  • Electronic Credit Ledger and Electronic Cash Ledger
  • Inward and outward supply registers
  • Details of RCM (Reverse Charge Mechanism) payments

Engagement Process

1

Collection and initial review of books and GST returns

2

Reconciliation of turnover between books and GSTR-3B/GSTR-1

3

Reconciliation of Input Tax Credit (ITC) between books and GSTR-2B

4

Identification of discrepancies, short payments, or excess ITC claimed

5

Preparation and certification of GSTR-9 (Annual Return) and GSTR-9C (Reconciliation)

6

Filing of the final forms on the GST portal

Service Timeline

Filing Deadline: Dec 31st

Value Delivered

Perfect Reconciliation

Align books of accounts perfectly with GSTR 2A/2B to ensure valid ITC claims.

Prevent Notices

Identify anomalies before the GST department does, avoiding show-cause notices.

Reverse Excess Payments

Identify instances of excess GST paid and assist in claiming rightful refunds.

Compliance Health Check

Ensure e-way bills and e-invoicing compliances are strictly followed.

Engage Our Audit Team

Frequently Asked Questions

Is GSTR-9C mandatory for everyone?
No, filing the reconciliation statement in Form GSTR-9C is mandatory only for taxpayers whose aggregate annual turnover exceeds Rs. 5 Crores.
What is the difference between GSTR-9 and GSTR-9C?
GSTR-9 is the Annual Return summarizing all transactions of the financial year. GSTR-9C is a reconciliation statement that matches the GSTR-9 data with the audited financial statements of the taxpayer.
Do I need a CA to sign GSTR-9C?
No, the government recently removed the requirement for CA certification on GSTR-9C. It is now self-certified. However, due to its complexity and the risk of notices, businesses strongly prefer having CAs prepare and verify it.
What happens if there is an ITC mismatch?
If you claimed more ITC in GSTR-3B than what is reflected in GSTR-2B (or allowed by law), you will have to reverse the excess ITC along with interest, usually at 18% or 24% p.a.
Is there a penalty for late filing of GSTR-9?
Yes, late filing attracts a penalty of Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST), subject to a maximum of 0.25% of the taxpayer's turnover in the respective state.
Are B2C transactions checked during a GST audit?
Yes, it is crucial to verify that B2C sales are correctly reported, and proper tax rates are applied, as B2C sales often have discrepancies when reconciling total turnover.