Verification of Purchases for ITC

1.		Turnover of purchases		Methodology followed for classification of purchases under various categories
	a-	Imports into India		Purchase invoices and other supporting documents
	b-	Inter-State purchases		(a)  Purchase invoices and other supporting documents (b) Class of goods purchased is included in the relevant list appended to the registration certificate issued under the CST Act and the goods are utilized for the intended purpose. Details of contraventions, if any, to be given in the report.
	c-	Branch transfers		a)   Verification of the amount with the books of accounts. (b) Entries in stock records
	d-	Local purchases from registered dealers		tax invoices and other supporting documents whether maintained or not
	e-	Local purchases from person other than registered dealers		Identification of purchases from all class of person other than  registered dealer including works contracts

2.            Computation of ITC/RITC
1-	a-	Tax paid or payable  on purchases from registered dealers		Adequacy ITC register maintained by the dealer for computation of admissible ITC
	b-	Tax paid on purchases not eligible for ITC		System followed for identification of purchases not eligible for ITC
	c-	Tax paid on purchases eligible for ITC		Whether purchases eligible for ITC supported by tax invoice which is in conformity with the requirements in this regard
	d-	Reversal of ITC at  prescribed rate of the purchase price on account of
	(d)i.	Inputs used in manufacture of tax free goods		Methods followed for computation of RITC and reasonableness of the ratios adopted for RITC
	(d) ii.	Packing materials used in packing of tax free goods		Method followed for computation of RITC and reasonableness of the ratios adopted for RITC
	(d) iii.	Purchased goods  transferred outside the State otherwise than by way of sale		Method followed for identification of such purchases
	(d) iv.	Inputs used in manufacture of goods which is  transferred outside the State otherwise than by way of sale		Method followed for computation of RITC and reasonableness of the ratios adopted for RITC
	e-	RITC on goods used in execution of works contract for which the contractor has opted for composition in lieu of tax payable		Method followed for identification of gross RITC admissible on purchases relating to such category of deemed sales and the method followed for working out RITC
	f-	RITC on the goods claimed  as capital goods but such goods are not eligible for ITC		Identification of goods  mentioned in the exclusion clause of section 2(f) of UPGST Act
	g-	RITC on the goods used in repairing and maintenance but claimed as capital goods.		Method followed for identification gross RITC admissible on purchases relating to such category of goods and the method followed for working out RITC
	h-	RITC on the purchase of goods for the dealer does not possess the tax invoice or purchased the without taking actual delivery of goods.		Method followed for identification of such purchases relating to such category of goods and the method followed for working out RITC
	i-	RITC on the purchase for which the dealer has lost  tax invoice		Method followed for identification of such purchases relating to such category of goods and the method followed for working out RITC
	j-	RITC on the purchase of capital goods which have been used in works contract		Methodology  adopted to identify such goods and computation of RITC
	k-	RITC on the opening stock on the date of commencement of compounding scheme under section 6		"
	l-	RITC on the stock on the date of closure of business		"
	m-	RITC on goods used or consumed in manufacturing/processing /packing of goods belonging to other persons		"
	n-	RITC  in respect of goods  gifted or otherwise distributed free of cost or lost or stolen or destroyed		"
	o-	RITC in respect of goods used in manufacturing /processing/packing of non GST goods		'
	p-	RITC in respect of credit note received  from seller		"
	q-	RITC in circumstances in which ITC is not admissible		"
2-		Balance ITC
		Add ITC on trading goods held in stock as on 1.1.08 claimed in return after 30.6.08		a)  Verification of stock declaration with closing stock as per books of accounts b) Verification of corresponding purchase invoices, eligibility for ITC and the amount of ITC claimed
3-		ITC adjusted against tax payable
4-		ITC adjusted against CST payable
5-		Refund of ITC claimed in the returns
6-		Balance, if any		Reasons, if any, for balance of ITC

Section K: Verification of returns under the Central Sales Tax Act, 1956
S.N.		Particulars	Amount	Verification	ObserGSTion	Remarks
1.		Gross turnover of sales including branch transfers		GTO of sales as per returns
2.		Turnover of sales under the UPGST Act, 2008		Turnover of sales as per returns under the UPGST Act, 2008
3.		Turnover of sales under the CST Act, 1956 including branch transfers		Turnover of sales and branch transfers under the UPGST
4.		Branch transfers		a) Method followed for valuation of branch transfers b) Verification of the amount with the books of accounts
5.		Turnover of sales under the CST Act, 1956 including taxes payable		Reconciliation of turnover of sales and sales tax payable with the books of accounts
6.		Deductions claimed
	I	Tax amount, whether shown separately or computed as per provisions of section 8A of the CST Act, 1956		Should be equal to total sales tax payable
	Ii	Non taxable charges		(a) Description of charges claimed as non taxable (b) Admissibility of deductions in the light of definition of 'sale price' read with the terms of sale
	iii	Sales outside the State u/s 4		Sales concluded outside the State
	Iv	Sales in the course of export u/s 5(1)-High seas sales		Documentation and operating procedure in terms of the provisions of the Act and legal position in this regard
	V	Sales in the course of export u/s 5(1) -Sales occasioning import		Documentation and operating procedure in terms of the provisions of the Act and legal position in this regard
	vi	Sales in the course of export u/s 5(2)-Direct export by the dealer		Documentation and operating procedure in terms of the provisions of the Act and legal position in this regard
	vii	Sales in the course of export u/s 5(3)-Sales against form H		Documentation and operating procedure in terms of the provisions of the Act and legal position in this regard
	viii	Sales in transit u/s 6(2)		Documentation and operating procedure in terms of the provisions of the Act and legal position in this regard
	Ix	Sales by Industrial unit availing the benefit of exemption from tax or reduction in the rate of tax under erstwhile Act		Exemption from tax only in respect of class of goods eligible for exemption as mentioned in the eligibility certificate and only if such sales are supported by Form C
	X	Sale under section 5(5) ,6(3),8(6) of CST Act 1956		whether correctly shown? and satisfies the condition for relevant provisions?
7.		Computation of central sales tax payable
	I	Sales against Form C
	Ii	Sales taxable at 4%
	iii	Sales taxable at.........		Description of goods sold and schedule entry number under the UPGST Act, 2008
	Iv	Sales taxable at.........		Description of goods sold and schedule entry number under the UPGST Act, 2008
	V	Sales without Form C
	vi	Sales taxable at.........		Description of goods sold and schedule entry number under the UPGST Act, 2008
	vii	Sales taxable at.........		Description of goods sold and schedule entry number under the UPGST Act, 2008
	viii	Sales taxable at.........		Description of goods sold and schedule entry number under the UPGST Act, 2008
		Total CST payable

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