GST AUDIT IN UTTAR PRADESH

GST AUDIT IN UTTAR PRADESH

How to verify Purchases from registered dealer?

• Whether purchases are against tax invoice or sale invoice?
• Whether purchases are inclusive of tax paid to registered dealer?
• Whether purchases includes other expenses such as commission, dami, packing/ forwarding charges,  loading/ unloading charges, cost of packing material?
• Whether purchases exclude reduction of amount in respect of return of goods?
• Whether related Tax/sale invoice contains the name and address of the purchasing dealer?
• Whether related TIN of seller is verifiable?
• Whether Cost of outward freight or cost of installation is separately charged or not?
• Whether amount of tax in tax/sale invoice is separately charged or not?

How to verify Purchases from person other than registered dealer?

• Whether purchases from person other than the registered dealer are verifiable or not?
• Whether tax have been paid to the Treasury or not?
• Whether tax on the purchase on behalf of principal have been paid or not?
• Whether certificate VI have been issued for purchase on behalf of principal or not?
• Whether the amount and weight of purchase shown in form VI tallied with account?
• Whether taxable turnover of purchase have been determined in accordance with the provisions of the Act and rule made there under?
• Whether purchase invoices have been maintained in accordance with provisions of the UPGST Act or rules framed there under?

How to verify Purchase of goods against declaration or certificate?

• Whether goods purchased against declaration C are covered by the certificate of registration issued under subsection (2) of section 7 of the CST Act 1956?
• Whether goods purchased against declaration C under the CST Act 1956 or certificate D prescribed by the Commissioner authorized under notification issued under UPGST Act2008 have been used for the purpose those have been purchased?
• Whether purchases are covered by the form of declaration prescribed for import of taxable goods?
• Whether goods imported against form of declaration prescribed for import of are used in resale or for use in manufacture or processing or packing of goods?
• Whether goods imported against form of declaration for import are not used in the circumstances described as above what is quantity/measure/weight of goods disposed / dispossession otherwise than in serial no(iv)?
• Whether due tax have been paid on sale of imported goods or not? If not, mention the amount not paid?

How to verify Gross turnover of sales?

• Whether GTO of sales to include all transactions of sales concluded during the period of verification including sale of assets etc.?
• Whether any ex post facto grant of discounts or incentives or rebates or rewards and the like included or not?
• Whether the amount of money value of any additional consideration flowing directly or indirectly from the buyer to the seller included or not?
• Whether amount of duty payable and deferred have been included or not?
• Whether price of packing  material have been included or not?
• Whether in case of works contracts turnover of sale has been determined in accordance with the provisions of Rule 9 of the UPGST Rules 2008 or not?
• Whether in case of transfer of right to use goods the turnover of sale has been determined in accordance with the provisions of Rule10 of the UPGST Rules 2008 or not?
• Whether return of goods beyond the prescribed period has not been deducted?
• Whether amount received from sale of business as a whole is correct?
• Whether credit/debit notes are available with the assessee or not?

How to verify Branch transfers etc?

• What is method for valuation of goods which have been transferred to branches/depot/agent etc?
• How verification of the amount with the books of accounts is to be done?
• Whether accounts maintain by the dealer contains all information as provided under Rule 4 of the UPCST Rules or not?
• Whether form F duly filed and signed by appropriate authority, along with the proof of dispatch, have been submitted to assessing authority?
• What is method and mode of receipt of money regarding sale proceeds?
• If payment is not by way of cheque or draft or pay order mention the amount received in cash? Also state how money flows in cash?

          Other points in Audit Report.

The authority shall prepare the report as referred to in section 21(17) and shall mention names of books of account and nature of documents which are produced before him for audit and which were audited by him. He shall give a precise note about the manner in which the same have been maintained.

The specified authority shall, in its audit report, indicate whether or not the dealer has computed amount of reverse input tax credit in accordance with provisions of the Act and these rules and Inventories prepared are in accordance with provisions of these rules.

The specified authority, who has made audit, shall audit the accounts and documents with a view to ascertain the claim of input tax credit and reduction in the input tax credit on account of reverse input tax credit.

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