FROM THE DESK OF ‘ B S R’

ARTICLE ON
ASSESSMENT AND AUDIT
( COMPLIANCE U/S 73,74)
–
GST LAW AND
PROCEDURE
( PRACTICAL MANNER)

Sri B.S.Seethapathi Rao,( Tax Consultant)

Ph No: 9848099490

Email Id: sitapathirao@yahoo.co.in

Dear Colleagues I am preparing article on “ ASSESSMENTS” Under GST Law as I’m
getting many queries on the above subject. Now GSTN share of tax payers data from
01.07.2017 to 31.03.2019 to CGST, SGSTT officers . Based on that data GST officers will
be issue notices and informed over phone for submission of records and conduct
surprise visits under GST Scenario and ready to finalize the assessments. . As a
upcoming tax professionals you must know about the procedure of assessments under
GST Scenario and what are the procedures followed by the Assessing officers under
GST scenario as per section from 59 to 64 of the CGST Act, 2017

What is the meaning of Assessment under GST Law?

As per Section 2(11) of CGST Act,2017,”Assessments” means determining the tax

liability under This Act and includes self-assessment, re-assessment, provisional
assessment, summary assessment and best judgment assessment.
1. Self –Assessment:
As per Section 59 of the CGST Act,2017, every registered person shall self-assess the
taxes and payable under this Act and furnish a return for each tax period s specified
under section 39.
2. Provisional Assessment:
As per Section 60 of CGST Act,2017 subject to the provisions of sub-section (2) , where
the taxable person is unable to determine the value of goods or services or both or
determine the rate of tax applicable thereto, he may request the proper officer in writing
giving reasons for payment of tax on a provisional basis and the proper officer in
writing giving reasons for pass an order, within a period not later than 90 days from the
date of receipt of such request, allowing payment of tax on provisional basis at such rate
or on such value as may be specified by him.

FROM GST ASMT-01: As per Rule 98(1) of the CGST Rules,2017, states that every
registered person requesting for payment of tax on a provisional basis in accordance
with the provisions of sub-section (1) of section 60 shall furnish an application along
with the document in support of his request, electronically in FORM GST ASMT-01 on
the Common Portal, either directly or through GST Practitioner .

FORM GST ASMT-02: Notice to appear in person or furnish additional

information/documents, as per 98(2) of the CGST Aact,2017,states that the proper officer
may, on recipient of the application under sub-rule (1), issue a notice in FORM GST
ASMT-02 requiring the registered person to furnish additional information or
documents in support of his request and the applicant shall file a reply to the notice in
FOR GST ASMT-03 and may appear in person before the said officer if he so desires.
 What are the records and documents to be submit before GST Officer for completion
of Assessment under GST Law:
(a) Verification of records by GST Officer at the time of take up assessment for prepare
audit notes: The proper officer authorized to conduct of the records and books of
account of the registered person shall with the assistance of the team of officers and
officials accompanying him, verify the documents and statements furnished under the
Act and rules made thereunder , to check the correctness of following:-
i. The turnover,
ii. Exemptions and deductions claimed,
iii. The rate of tax applied in respect of supply of goods or services,
iv. The input tax availed and utilized ,
v. Refund claimed, proper officer and his team will examine other relevant issued
ad record the observations in is audit notes.
(b) To afford the necessary facility to verify the books of accounts or other documents he
may require,

II. The taxable person submit these following records to GST officer:
i) Cash book for the audit period mentioned by the audit officer in said notice,
ii) Ledger of inward supply of goods , services,
iii) Ledger of out ward supply of goods, services,
iv) Returns forms like GST Form 3B, GSTR-1, GSTR-2 and GSTR-3 and GSTR-4 etc.,
maintained by the taxable person as per GST Act, Maintenance of Records Rules,
v) Payments challans,
vi) Ledger of Bank account,
vii) Details of E way bill for the audit period for inward and out ward supply of
goods and services,
viii) GST registration certificate details like principle place of business, branch and
other place of details whether incorporate or not,
ix) Ledger of stock maintained at Where house by the taxable person,
x) Trial Balance for the audit period and Profit and Loss Account,
xi) Copy and details of Trans-1, Trans-2 and 2A and Trans-3 etc., for the year 2017-
18 along with stock register and copies of original invoice relating to ITC claimed
in Trans-1 for the period prior to July’2017 as per Sec.143 of CGST Act,2017.
Form and manner of issuance of order:
As per Rule 98(3) of CGST Act,2017 ,that the proper officer shall issue an order in FORM
GST ASMT-04 , allowing payment of tax on a provisional basis indicating the value or
the rate or both on the basis of which the assessment is to be allowed on a provisional
basis and the amount for which the bond is to be executed and security to be furnished
not exceeding twenty five percent, of the amount covered under the bond.
Bond with security:
As per secc.60(2) of the CGST Act,2017, the payment of tax on provisional basis may be
allowed, if the taxable person executes a bond in such form as may be prescribed and
with such surety or security as the proper officer may deem fir, binding the taxable
person for payment of the difference between the amount of tax as may be finally
assessed and the amount of tax provisionally assessed.
Rule 98(4) of the CGST Act,2017, the registered person shall execute a bond in
accordance with the provisions of sub-section (2) of section 60 in FORM GST ASMT-05
along with a security in the form of a bank guarantee for an amount as determined
under sub-rule (3).
Provided that a bond furnished to the proper officer under the CGST
SGST//UTGST/IGST Acts shall be deemed to be a bond furnished under the provisions
of this Act and the rules made thereunder.
Explanation:- For the purpose of this rule, the term ”amount” shall include the amount
of integrated tax, central tax, State tax, or Union territory tax and cess payable in respect
of the transaction.
Time Limit for passing final order:
As per section 60(3) of the CGST Act,2017 the proper officer shall, within a period not
exceeding six months from the date of the communication of the order issued under sub-
section (1), pass the final assessment order after taking into account such information as
may be required for finalizing the assessment.
Provided that the period specified in this sub-section may, on sufficient cause being
shown and for reasons to be recorded in writing, be extended by the Joint Commissioner
or Additional Commissioner for a further period not exceeding six months and by the
Commissioner for such further period not exceeding four years.
As per Rule 98)5) of the CGST Act,2017, the proper officer shall issue a notice in FORM
GST ASMT-06, calling for information and records required for finalization of
assessment under sub-section (3) of section 60 and shall issue a final assessment order,
specifying the amount payable by the registered person or the amount refundable, if any
in FORM GST ASMT-07.
As per rule 98(6) of the CGST Act,2017, the applicant may file an application in FORM
GST ASMT-08 for release of security furnished under sub-rule (4) after issue of order
under sub-rule (5).
As per rule 98(7) of CGST Act,2017, the proper officer shall release the security furnished
under sub-rule (4), after ensuring that the applicant has paid the amount specified in
sub-rule (5) and issue an order in FORM GST SMT-09 within a period of seven working
days from the date of receipt of the application under sub-rule(6).
Payment of Interest:
As per section 60(4) of the CGST Act,2017, the registered person shall be liable to pay
interest on any tax payable to pay interest on any tax payable on the supply of goods or
services or both under provisional assessment but not paid on the due date specified
under subsection (7) of section 39 or the rules made thereunder, at the rate specified
under sub-section (1) of section 50 , from the first day after the due date of payment of
tax in respect of the said supply of goods or services or both till the date of actual
payment, whether such amount is paid before or after the issuance of order for final
assessment.
Refund:
As per section 60(5) of the CGST Act,2017, where the registered person is entitled to a
refund consequent to the order of final assessment under sub-section (3) , subject to the
provisions of sub-section (8) of section 54 , interest shall be paid on such refund as
provided in section 56.
Scrutiny of Returns:
As per sec.61 of the CGST Act, 2017, provides:-
(1) The proper officer may scrutinize the return and related particulars furnished by the
registered person to verify the correctness of the return and inform him of the
discrepancies noticed if any, in such manner as may be prescribed ad seek his
explanation thereto.
(2) In case the explanation is found acceptable , the registered person shall be informed
accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of
being informed by the proper officer or such further period as may be permitted by
him or where the registered person, after accepting the discrepancies , fails to take
the corrective measure in his return for the month in which the discrepancy is
accepted, the proper officer may initiate appropriate action including those under
sec.65 or sec.66 or sec.67, or proceed to determine the tax and other dues under
sec.73 or sec.74.

Manner of Scrutiny of Returns:

As per rule 99 of the CGST Rules, 2017 provides for the manner of scrutiny of returns:-
(1) Where any return furnished by a registered person is selected for scrutiny , the
proper officer shall scrutinize the same in accordance with the provisions of section
61 with reference to the information available with him, and in case of any
discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10 ,
informing him of such discrepancy and seeking his explanation thereto within such
time , not exceeding thirty days from the date of service of the notice or such further
period as may be permitted by him and also , where possible , quantifying the
 amount of tax, interest and any other amount payable in relation to such
discrepancy.
(2) The registered person may accept the discrepancy mentioned in the notice issued
under sub-rule (1) , and pay the tax, interest and any other amount arising from such
discrepancy and inform the same or furnish an explanation for the discrepancy in
FORM GST ASMT-11 to the proper officer.
(3) Where the explanation furnished by the registered person or the information
submitted under sub-rule (2) is found to be acceptable, the proper officer shall
inform him accordingly in FORM GST ASMT-12.

Assessment of Non-Fillers of Return:

As per Section 62 of the CGST Act,2017 provides :-

(1) Notwithstanding anything to the contrary contained in sec.73 or sec.74, where a

registered person fails to furnished the return under sec.39 or sec.45, ever after the
service of a notice under sec.46, the proper officer may proceed to assess the tax
liability of the said person to the best of his judgment taking into account all the
relevant material which is available or which he has gathered and issue an
assessment order within a period of five years from the date specified under sec.44
or furnishing of the annual return for the financial year to which the tax not paid
relates.
(2) Where the registered person furnishes a valid return within thirty days of the service
of the assessment order under sub-section (1), the said assessment order shall be
deemed to have been withdrawn but the liability for payment of interest under sub-
section () of section 50 or for the payment of late fee under sec.47 shall continue.
(3) As per rule 100(1) of CGST Act,2017, The order of assessment made under sub-
section (1) of section 62 shall be issued in FORM GST ASMT-12.

Assessment of Unregistered Person:

As per section 63 of the CGST Act,2017, provides:-

Notwithstanding anything to the contrary contained in section 73 or sec.74, where a
taxable person fails to obtain registration even though liable to do so or whose
registration has been cancelled under sun-section (2) of section 29 but who was liable to
pay tax, the proper officer may proceed to assess the tax liability of such taxable person
to the best of his judgment for the relevant tax periods and issue an assessment order
within a period of five years from the date specified under section 44 for furnishing of
the annual return for the financial year to which the tax not paid relates:
Provided that no such assessment order shall passed without giving the person an
opportunity of being heard .
As per Rule 100(2) of CGST Act,2017,the proper officer shall issue a notice to a taxable
person in accordance with the provisions of sec.63 in FORM GST ASMT-14 containing
the grounds on which the assessment is proposed to be made on best judgment basis
and after allowing a time of fifteen days o such person to furnish his reply if any, pass an
order in FOR GST ASMT-15.

Summary of Assessment in Certain Cases:

As per sec.64(1) of CGST Act,2017, the proper officer may, on any evidence showing a
tax liability of a person coming to his notice , with the previous permission of Additional
Commissioner or Joint Commissioner, proceed to assess the tax liability of such person
to protect the interest of revenue and issue an assessment order, if he has sufficient
grounds to believe that any delay in doing so may adversely affect the interest of
revenue.
Provided that where the taxable person to whom the liability pertains is not
ascertainable and such liability pertains to supply of goods, the person in charge of such
goods shall be deemed to be the taxable person liable to be assessed and liable to pay tax
and any other amount due under this section.
As per Rule 100(3) of CGST Act,2017, The order of summary assessment under sub-
section (1) of section 64 shall be issued in FROM GST ASMT-16.
As per sec.64(2) of the CGST Act,2017, provides that on application made by the taxable
person within thirty days from the date of receipt of order passed under sub-section (1)
or on his own motion , if the Additional Commissioner or Joint Commissioner considers
that such order is erroneous , he may withdraw such order and follow the procedure
laid down in section 73 or section 74.
As per rule 100(5) of CGST Act,2017,The person referred to in sub-section (2) of section
64 may file an application for withdrawal of the summary or, as the case may be,
rejection of the application under sub-section (2) of section 64 shall be issued in FORM
GST ASMT-18.
Dear Professional colleagues, I have completed my notes on “ ASSESSMENTS “ under
various sections under GST Law,2017.
Notes on DEMAND AND RECOVERY “ UNDER Sec.73 and 74 of CGST Act,2017.

Q.1. What are the applicable sections for the purpose of recovery of tax short paid or not
paid or amount erroneously refunded or input tax wrongly availed or utilized?

Ans. Section 73 deals with the cases where there is no invocation of fraud/ suppression /
mis-statement etc. Section 74 deals with cases where the provisions related to
fraud/suppression/mis-statement etc., are invoked.

Q.2. What if person chargeable with tax , pays the amount along with interest before
issue of show cause notice under Sec.73?

Ans. In such cases notice shall not be issued by the proper officer as per Sec73(3) of
CGST Act.

Q.3. If show cause notice is issued under Section 73 and thereafter the noticee makes
payment along with applicable interest , is there any need to adjudicate the case?

Ans. If the person pays the tax along with interest within 30 days of issue of notice, no
penalty shall be payable and all proceedings in respect of such notice shall be deemed
to be concluded as per Sec.73(8) of CGST Act,2017.

Q.4. What is the relevant date for issue of show cause notice?

Ans.( I). In case of section 73 ( cases other than fraud/suppression of facts/ willful mis-
statement), the relevant date shall be counted from the due date for filing of annual
return for the financial year to which demand relates to the Show Cause Notice has to
be adjudicated within at a period of three years from the due date of filing of annual
return. The Show Cause Notice is required to be issued at least three months prior to
the time limit set for adjudication as per Sec. 73(2&10).

(ii). In case of Section 74 ( cases involving fraud/suppression of facts/willful mis-

statement), the relevant date shall be counted from the due date for filing of annual
return for the financial year to which demand relates to. The Show Cause Notice has to
be adjudicated within at period of five years from the due date of filling of annual
return. The Show Cause Notice is required to be issued at least ix months prior to the
time limit set for adjudication as per Sec.74(2 & 10) of CGST Act,2017.

Q.5. Is there any time limit for adjudication the case?

Ans. (1). In case of Sec.73 ( cases involving fraud/suppression of facts/willful mis-

statement), the time limit for adjudication of cases is 3 years from the due date for filing
of annual return for the financial year to which demand relates to or the date of
erroneous refund/ITC wrongly availed as per Sec.73(10) of CGST Act,2017.

(2). In case of Sec.74 ( cases involving fraud/suppression of facts/willful mis-statement),

the time limit for adjudication of cases is 5 years from the due date for filing of annual
return for the financial year to which demand relates to or the date of erroneous
refund/ITC wrongly availed as per Sec.74(10) of CGST Act,2017.

Q.6. Is there any immunity to a person chargeable with tax in case of fraud/suppression
of facts/ willful mis- statement, who pays the amount of demand along-with interest
before issue of notice?

Ans. Yes. Person chargeable with tax, shall have an option to pay the tax amount of tax
along with interest and penalty equal to 15% percent of the tax involved, as ascertained
either on his own or ascertained by the proper officer, and on such payment, no notice
shall be issued with respect to the tax paid as per Sec.74(6) of the CGST Act,2017.

Q.7. If notice is issued under Section.74 and thereafter the noticee makes payment is
there any need to adjudicate the case?

Ans. Where the person to whom a notice has been issued under sub-section 7(1) of
Section 74 , pays the tax along with interest with penalty equal to 25% of such tax
within 30 days of issue of notice, all proceedings in respect of such notice shall be
deemed to be concluded as per Sec.74(8) of CGST Act,2017.
Q.8. In case a notice is adjudicated under 74 and order issued confirming tax demand
and penalty, does the notice have any option to pay reduced penalty?

Ans. Yes, If any person pays the tax determined by the order along with interest and
penalty equivalent to 50% of such tax within thirty days of the communication of order,
all proceedings in respect of the said tax shall be deemed to be concluded as per
Sec.74(11) of CGST Act,2017.

Q.9. What will happen in cases where notice is issued but order has not been passed
under Sec.73 & 74 within time specified for adjudication under these sections?

Ans. Section 75(10) provides for deemed conclusion of the adjudication proceedings if
the order is not passed within time limit prescribed under these sections.

Q.10. What happens if a person collects tax from another person but does not deposit
the same with Government?

Ans. It is mandatory to pay amount, collected from other person representing tax under
this act, to the government. For any such amount not so paid , proper officer may issue
Show Cause Notice for recovery of such amount and penalty equivalent to such amount
as per Sec.77(1&2) of CGST Act,2017.

Q.11. In case the person does not deposit tax collected in contravention of Section 76(1),
what is the proper course of action to be taken?

Ans. Show Cause Notice may be issued and if so, an order shall be passed following
Principles of natural justice within one year of date of issue of such notice as per
Sec.76(2 to6) of the CGST Act,2017.
Q.12. What is the time limit to issue notice in case under Section 76 i.e. taxes collected
but not paid to Government?

Ans. There is n time limit. Notice can be issued on detection of such cases without any
time limit.

Q..13. What are the modes of recovery of tax available to the proper officer?

Ans. The Proper officer may recover the dues in following manner:-

(i) Deduction of dues form the amount owned by the tax authorities payable to
such person,
(ii) Recovery by way of detaining and selling any goods belonging to such
person,
(iii) Recovery from other person, from whom money is due or ay become due to
such person or who holds or may subsequently hold money for or on account
of such person, to pay to the credit of the Central or a State Government.
(iv) Distrain any movable property belonging to such person , until the amount
payable is paid. If the dues not paid within 30 days, the said property is to be
sold and with the proceeds of such sale the amount payable and cost of sale
shall be recovered.
(v) Through the Collector of the district in which such person owns any property
or resides or carries on his business , as if it was an arrear of land recovery,
(vi) By way of an application to the appropriate Magistrate who in turn shall
proceed to recover the amount as if it were a fine imposed by him.
(vii) Through enforcing the bond/ instrument executed under this Act or any rules
or regulations made thereunder,
(viii) CGST arrears can be recovered as an arrear of SGST and vice versa as per
Sec.79(1,2,3,and 4) of CGST Act.
Q.14. Whether the payment of tax dues can be made in installments?

Ans. On receipt of any such request, Commissioner/Chief Commissioner may extend

the time for payment or allow payment of any amount due under the Act, other than
the amount due as per the liability self-assessed in any return, by such person in
monthly installments not exceeding twenty-four, subject to payment of interest under
section 50 with such limitations and conditions as may be prescribed . However, where
there is default in payment of any one installment on its due date , the whole
outstanding balance payable on such date shall become payable and recovered without
any further notice as per Sec.80 of CGST Act.

Q.15. What is the course f recovery in cases where the tax demand confirmed is
enhanced in appeal/revision proceedings?

Ans. The notice of demand is required to be observed only in respect of the enhanced
dues. In so far as the amount already confirmed prior to disposal of appeal/revision, the
recovery proceedings may be continued from the stage at which such proceedings
stood immediately before such disposal of appeal / revision as per Sec84(a) of CGST
Act.

Q.16. If a taxable person with pending tax dues, transfers his business to another erson,
what would happen to the tax dues?

Ans. The person, to whom the business is transferred , shall jointly and severally be
liable to pay the tax, interest or penalty due form the taxable person up to the time of
such transfer, whether such dues has been determined before such transfer, but has
remained unpaid or is determined thereafter as per Sec.85(1) of CGST Act,2017.
Q.17. What happens to tax dues where the Company (taxable person) goes into
liquidation?

Ans. When any company is wound up, every appointed receiver of

assets(“Liquidator”) shall give intimation of his appointment to Commissioner within
30 days . On receipt of such intimation Commissioner may notify amount sufficient to
recover tax liabilities/dues to the liquidator within 3 months as per Sec88(1,2) as per
CGST Act,2017.

Q.18. What is the liability of director of the Company ( taxable person) under
liquidation?

Ans. When ay private company is wound u and any tax or other dues determined
whether before or after liquidation that remains unrecovered, every person who was a
director of the company during the period for which the tax was due, shall jointly and
severally be liable for payment of dues unless he proves to the satisfaction of the
Commissioner that such non-recovery is not attributed to any gross neglect,
misfeasance or breach of duties on his part in relation to the affairs of the Company as
per Sec.88(3),89 of CGST Act,2017.

Q.19. What is the liability of partners of a partnership firm(Taxable person) to pay

outstanding tax?

Ans. Partners of any firm shall jointly and severally be liable for payment of any tax,
interest or penalty. Firm/partner shall intimate the retirement of any partner to the
Commissioner by a notice in writing. Liability to pay tax, interest or penalty up to the
date of such retirement, whether determined on that date or subsequently, shall be on
such partner.

If no intimation is given within one month from the date of retirement, the liability of
such partner shall, continue until the date on which such intimation is received by the
Commissioner as per Section 90 of CGST Act,2017.
Q.20. What happens to the tax liability of a taxable person, whose business is carried on
by any guardian/trustee or agent of a minor?

Ans. Where the business in respect of which any tax is payable is carried on by any
guardian/ trustee/agent of a minor or other incapacitated person on behalf of and for
the benefit of such minor / incapacitated person, the tax, interest or penalty shall be
levied upon and recoverable from such guardian /trustee/agent as Sec.91 of CGST
Act,2017.

Q.21. What happens when the estate of a taxable person is under the control of Court of
Wards?

Ans. Where the estate of a taxable person owning a business in respect of which any tax,
interest or penalty is payable is under the control of the Court of Wards/ Administrator
General/ Official Trustee/ Receiver or Manager appointed under any order of a Court,
the tax, interest or penalty shall be levied and recoverable from such Court of
Wards/Administrator General/ Official Trustee/ Receiver or Manager to the same text as
it would be determined and recoverable from a taxable person as per Sec92 of CGST
Act,2017.

Here with I am providing my notes on what is the procedure you have to follow to file
reply in Form GST DRC-06 in practical manner under Sec.73 &74 under GST Law,2017,
to know by our tax professionals in their day to day profession.

Filing Form GST DRC-06 against Proceedings initiated by tax officer U/s.73 and 74
related to determination of Tax.

A).How Can I file Form GST DRC-06 against proceedings initiated against me, by tax
officer, U/s.73 and 74 related to determination of tax?

To file Form GST DRC-06 against proceedings initiated against you, by Tax Officer, u/s 73 and 74 related
to determination of tax, perform following steps:
i). Navigate to view additional Notices/Orders page to view Notices and orders issued against you by
Adjudicating or Assessing Authority (A/A) .
ii). Take action using Notices tax of Case Details screen: View issued Notices.
iii). Take action using Replies tax of Case Details screen: View/Add your reply (Form GST DRC-06) to the
issued Notice.
iv). Take action using Orders tab of Case Details screen: View issued Order.
Click each hyperlink above to know more.

 Take action using Notices tab of Case Details screen: View Issued Notices.
To view issued Notices, perform following steps:
 On the Case Details page of that particular Case ID, select the NOTICES tab, if it is not selected
by default. This tab displays all the notices (SCN/Statement/Reminder/Adjournment) issued by
A/A to you.

Click the document name(s) in the Attachments section of the table to download into your machine and
view them.

Go back to the Main Menu:

 Take action using Replies tax of Case Details screen: View/Add your reply (Form GST DRC-06) to
the issued Notice.

To view or add your reply (Form GST DRC-06) to the issued Notice, perform following steps:

Note: Once the Tax Officer has issued SCN against your case and you are unable to make
payment within 30 days of SCN, you must file your Reply in Form GST DRC-06.

B.On the Case Details page of that particular taxpayer, select the REPLIES tab. This tab will display
the replies you will file against the Notices issued by A/A. To add a reply, click ADD REPLY and
select REPLY.
Note: Current Status as displayed is "Pending for reply by taxpayer". It will change once you add
your reply.

C.REPLY page is displayed. Type, Date of SCN, SCN Ref No, Financial Year fields are auto-
populated. Enter details in the other fields as mentioned in the following steps. To go to the previous
page, click BACK.

 In the Personal Hearing Required? field, select Yes or No.

Note: This button is visible to only those taxpayers where the A/A has not called for a personal
hearing in the issued notice.
 In Reply field, enter details of your reply to the issued notice.
 Click Choose File to upload the document(s) related to your reply, if any. This is not a
mandatory field.
 Enter Verification details. Select the declaration check-box and select the name of the authorized
signatory. Based on your selection, the fields Designation/Status and Date (current date) gets
auto-populated. Enter the name of the place where you are filing this reply.

Click PREVIEW to download and review your reply. Once you are satisfied, click FILE.
 Submit Application page is displayed. Click ISSUE WITH DSC or ISSUE WITH EVC.

> Notices and Orders page is displayed with the generated Reference number. To download the
filed reply, click the Click here hyperlink. Then, click OK.

 The updated REPLIES tab is displayed, with the record of the filed reply in a table and with
the Status updated to "Reply furnished, Pending for order by tax officer". You can also click the
documents in the Attachments section of the table to download them.
 Note: Once you file your reply successfully, following actions take place on the GST Portal:
You will receive acknowledgement intimation via your registered email and SMS, along with the
generated RFN.

Your Reply will be available on A/A's dash board.

Go back to the Main Menu:

 Take action using Orders tab of Case Details screen. View Order Issued against your case.
 To download order issued against your case, perform following steps:

 On the Case Details page of that particular Case ID, click the ORDERS tab. This tab provides
you an option to view the issued order, with all its attached documents, in PDF mode.

 Click the document(s) in the Attachments section of the table to download and view them.

Go back to the Main Menu:

What are the records to be verified by the GST Audit Team of CGST or SGST
Department.

Dear Colleagues, if you have received notice from the authorized person of CGST or
SGST authority for conduct audit under Sec.73 & 74 under GST Law,2017, you have to
submit these following documents to the authorized person for complete audit under
GST Law,2017.

1. Cash Book/ or Day Book (from 1’st July,2017 to date of notice received from the
audit officer),
2. General Ledger (from 1’st July,2017 to date of notice received from the audit
officer),
3. Purchase Ledger (from 1’st July,2017 to date of notice received from the audit
officer),
4. Sale Ledger (from 1’st July,2017 to date of notice received from the audit officer),
5. Details of Capital goods purchased and claim of ITC details and sale of any
capital goods and output tax paid challan etc., from 1’st July,2017 to date of
notice received from the audit officer,
6. Bank Statement for the period from 1’st July,2017 to date of notice received from
the audit officer,
7. If works contractor, copies of agreements for the tax period from 1’st July,2017 to
date of notice received from the audit officer,
8. Details of R.A. Bills (M.Book copies)and Tax Invoices for the tax period from
1’st July,2017 to date of notice received from the audit officer),
9. Copies of GST GSTR-3B returns for the tax period from 1’st July,2017 to date of
notice received from the audit officer,

10.Copies of GSTR-1 returns for the tax period from 1’st July,2017 to date of
notice received from the audit officer.
11.Copies of GSTR-2A returns for the tax period from 1’st July,2017 to date
of notice received from the audit officer,
12.Details with documentary evidence of RCM payments for the tax period
from 1’st July,2017 to date of notice received from the audit officer)
13.Copies of Income Tax Returns for the financial year 2017-18 &2018-19.

14.Copies of TDS returns for the tax period from 1’st July,2017 to date of
notice received from the audit officer ( In case of works contractors),
 15. Copy of the GST registration certificate along with additional place of
business , Branch, Godown etc.,with the State and Out of State,
16. Copies of E –Way bills along with statement for the tax period from 1’st
July,2017 to date of notice received from the audit officer,
17. Copies of Delivery Challans and Tax Invoices for the tax period from
1’st July,2017 to date of notice received from the audit officer),
18. Copies of export documents along with Bill of Lading, Bill of Entries for
the tax period from 1’st July,2017 to date of notice received from
the audit officer,
19. Copies of Tran-I & Tran II returns along with details of workings filed
for the audit period.
20. Details of vacant site or godown and commercial complex has given on
lease bases/rental basis for commercial purposes for the tax period
from 1’st July,2017 to date of notice received from the audit officer,
21. Details of land given for lease for cultivation of commercial crop for the
tax period from 1’st July,2017 to date of notice received from the audit
officer),
22. Details of any amendments in registration or authorized person or
natural of business in registration certificate for the tax period from
1’st July,2017 to date of notice received from the audit officer),

How to verify the documents by the authorized person for completion of audit .
(1) Important Documents:
(i) Copy of the GST Registration Certificate: They have to refer about
incorporation of Business Addresses, Godown addresses, Branch
addresses within the State and Out of States which belongs to same PAN
number holder and cross check details of application form uploaded at the
time of migration or applied for fresh registration from GSTIN Site with
your clients user i. d. and password of regular taxable persons.
(ii) If your client is a composition dealer they have to verify GST registration
certificate and application for composition.
(iii) They have verified Copy of Income Tax Return for the financial year
2016-17 &2018-19 filed before I.T. Authority along with Annexures.
(iv) Copy of Bank account /Accounts and cross check with PAN Number
about to know how many bank accounts has been maintained through
Indian Bank site.
(v) They have verified Books of accounts either manual, computer etc., along
with other records like branch accounts with in the State and Out of
States, Godown registers etc.,
(vi) They have to verify copies of “TAX INVOICES” along with Purchase
Orders ( In case of Companies, Partnership firms). If it is a company
obtain copy of the Memorandum and Articles of Association, If it is a
partnership firm obtain copy of the Partnership Deed.
(vii) They have verified copies of other State GSTIN certificates and verify such
certificate details with GSTIN about whether he has incorporated all the
branches or not within the State and out of State.
(viii) They to verify Copies of VAT Returns, CST Returns, Services Tax Returns
and Central Excise Returns for the tax periods April,2017 to June’2017 of
H.O and Branch offices etc.,
(ix) They have to verify Copies of GSTR-3B, GSTR-1, GSTR-2A, GSTR-4 and
GSTR-6, etc., for the tax periods from July’2017 to March’2019 or as on
date of notice issued..
(x) They have verified list of salaried employees for the above mentioned
period along with Labour registration certificate, salary slips etc., ,if any
out source employees salaries is their,then verified whether they have
paid RCM or not.
(xi) They have verified copy of the “ Rental Agreement/s of Principal Place of
business premises, Godowns, Branches etc., verify with GSTIN
registration certificate whether they shown all the business addresses in
GSTIN Registration Certificate of places of business of your client.
(xii) They have verified details about immovable properties shown in balance
sheet for the financial year 2017-18 and 2018-19 or up to date of notice
issued and also ask them about if any assets omitted in Balance Sheet for
the above mentioned period.
(xiii) They have verified details about if he has any other part time business like
LIC agent, Real-estate commission business, Photo stat business, Sim card
agencies , collection agent business, or worked as an agent or Commission
agent to any taxable person or company etc.,
(xiv) They have verified details about vehicles like travel car business, Tour
operator business, Lorry transport business etc., for the above period and
also check with Aadhar Card/ PAN Card through Transport Department
site.
 (xv) They have verified import and export licenses and verify what are the
commodities that are incorporated in DGFT application and what are the
commodities that are imported or exported or check whether import or
export of goods or services.
(xvi) They have verified if your client is having manufacturing activity then
check with about Job work issues and such job worker is having GSTIN
registration or not. If job worker is not having registration under GST
Law, you have to check whether he has incorporated such Job work
addresses in your client GSTIN registration certificate.
(xvii) If your client is having import or export of goods or services or both , then
you have to obtain Import invoice, Bill of Entry, IGST paid or not and
obtain LUT copy . If he is having export activities of goods or services then
obtain Export Invoice, other documents like Bill of Lading, BRC copy etc.,
(xviii) If your client is having export activities of goods or services obtain the
details of refund claim details for the tax periods from July’2017 to
March’2018 and 2018-19 or up to date of notice issued along with copies of
RFD-01,2,3,4, etc., and work about total eligible refund out of which how
much refund he has received and how much refund is due form the
department for the above period. If any variations are identified during
the audit, note in audit report and discuss with your client.
(xix) If your client is having branches with in the State or out of State then
check whether he is having registration as Input Service Distributor under
GST Law. If he is having branches, then check about distribution of ITC
branch wise transaction and relevant ITC claim and expenses etc ., and
also check about passing the entries in the respective branch books of
accounts and GSTR 3B and GSTR-1 etc., for the above period.

(2) Verification Part from the records:

(a) TAX INVOICES/ Bill of Supply :

(i) Place of Supply: You have to verify “ PLACE OF SUPPLY” on the Tax
Invoices. Because most of the taxpayers are not following to fill up place
of supply coloum in the TAX INVOICE. As per GST Law,2017 Place of
supply is most important aspect to fix appropriate tax rate under
appropriate Act (IGST,CGST,SGST/UTGST/CESS Laws).
(ii) Time of Supply: You have to verify “ Time of Supply” on the
TaxInvoice” Because most of the tax payers are not followed to fill up
“TIME OF SUPPLY” coloum in the TAX INVOICE. As per GST Law,2017
Time of Supply also important aspect to claim of ITC as per Sec.16 ,17
and 18 of CGST Law,2017.
(iii) Classification of goods or services: You have to check about classification
aspect. Because it is also most important area for verification. Most of the
tax payers are not having knowledge about ‘Classification of goods or
services. Whatever transactions made by them whether such transaction
comes either supply of goods or supply of services under GST Law. Most
of the accountants are not verifying ‘tax Invoice”about what is the rate of
tax applied by his client on such supply and also not having knowledge
on theory of Classification and not verified before preparation of books of
accounts about what is the rate of tax attract on such supply of goods or
services under GST Law,2017. Classification of Goods or Services is most
important aspect because the rate of tax on such transaction is depending
upon the classification. Normally dealers and accountants both are not
having an experience in classification because GST Law is new act.
So, we have to verify each and every transaction of your client with Tax
Invoice and relevant documents like E way bill, Delivery Challan, Bill of
Lading etc., (Here with I am providing my notes on theory of classification
for better understanding as per law).
(iv) Advances received against supply of services: This is also an important
area for verification under GST Law, Because such advances are taxable
under section 9(4) of GST Law,2017. In my observation most of the tax
payers are not paying tax on advances received “against supply of
Services”. They are having an impression that section 9(4) of CGST Law
suspended from 13.10.2017. But Sec.9 (4) suspended on advances received
against supply of goods only not services. Especially works contractors
are not paying taxes on advances received against supply of services.
Especially Works Contract services, they are not paid GST Tax on the
above mentioned receipts under RCM under GST aw,2017.
(v) Tax payable under Reverse Charge Mechanism as per Sec.9(3) of CGST
Act,2017: This area is also an most important under GST Law. Because as
per Sec.9 (3) of CGST Law,2017. GST Tax is applicable on inward supply
of goods from unregistered persons by registered taxable person as per
 Notification No. 12/2017 Dated. 28.07.2017 like GTA, Legal charges paid
to an advocate, Sponsorship services, Director Services, Insurance Agent
Services, Recovery Agent Services, transfer or pertaining the use or
enjoyment of a copy right. Further Notification No.4/2017 dt.28th June
‘2017, these following inward supply of goods (Purchase from URD) made
from un-registered taxable persons are liable to tax under Sec.9(3) of GST
Law,2017. Like Cashew nuts(not shell or peeled), Tobacco leaves, Silk
Yarn, Raw Cotton, Supply of Lottery and nay used, Seized and confiscated
goods, vehicles , waste and scrap etc .,purchased form the Government
department.
(vi) Rental Income received on any commercial immovable property : This
chapter is most important because it is new concept under GST law. So,
you have to check your clients bank account, Postal Pass books etc,. about
any income received on commercial properties, vacant land , Any flats
were given to run Government offices, Private offices, Educational
Institutions from Degree and above, Agricultural land given for
commercial crop and received yearly income etc.,
(vii) Form Tran-1,Tran-II under GST Law: You have to verify the details
relating to closing stock as on date of 30.06.2017 as per books of accounts
and compare with TRAN-1 filed by your client. You have to verify
opening stock as on date of 01.04.2017 as per Income Tax Return filed
before I.T Authorities along with Books of accounts closed as on
31.03.2017. Prepare closing stock statement as per below formula:
Opening Stock of goods as on 01.04.2017 as per I.T. return :
XXXXX
Add: Purchases from 1’st April,2017 to 30th June’2017 as per books:
XXXXX

Total Stock as on 30.06.2017 :

XXXXXX
Less: Put to sale :
XXXXXX

Closing Stock Value as on 30.06.2017 :

XXXXXX
 Sales from 01.04.2017 to 30.06.2017 : XXXXXXXXXXXXXXX

Less: Latest G.P . as per Latest I.T. return: XXXXXXXXXXXXXXX

(Formula: Total Sales*Rate of G.P.
100+ Rate of G.P ________________
Put to Sale will be arrive based on the above formula:
XXXXXXXXXXXXXXX

So, Now they have to verify stock value as per books of accounts and compare
with TRAN-1 filed by your client.

Profit & Loss Account Items:

1. Opening Stock: They have to obtain previously filed Income Tax Return and
verify the closing stock value adopted in Profit and Loss Account and Balance
Sheet as on 31.3.2017 and compare with “ Physical Stock Register” and General
Ledger, observe if there is any difference and rectify in the books of accounts and
GSTR-1 and GSTR 3B on or before Sept’2018 and prepare in excel sheet such
omissions and additions for the period 01.07.2017 to 31.03.2018 but rectified in
subsequently tax period or Sept’2018 GSTR-1,GSTR-3B mention it in your notes
on accounts and discuss with management and report in appropriate coloum in
GSTR-9 and 9C .
2. Purchases (a): They have to obtain Original Tax Invoices and verify 100% Tax
Invoices for the tax periods from April’2017 to June’2017 for claim of ITC and
compare with VAT 200 returns and Ledger of the VAT department. (Available in
APVAT official Site) and confirm about ITC credit balance for the month of
June’2017 and compare with TRANS-1 filed by your client and also noted date of
filing of TRAN-1,TRAN-2 and whether passed entries in the books of accounts are
not, if passed kidney verify TRAN-1.

3. Inward Supply of goods (Purchases) (b) : They have to obtain 100% tax invoices
and verify Place of Supply, Time of Supply, Classification of HSN Code and
whether he can apply correct rate of tax or not and under concerned Acts based
on place of supply , like IGST,CGST,SGST and UTGST Acts or not for the tax
period from 1st July,2017 to 31st March,2018.
 If any mistake is observed mention in your notes on accounts and discuss with
the management and rectify and correct it before prepare Profit & Loss Account.
4. Inward supply of Goods Return (Purchase Returns): They have to verify books
of accounts and observe that your client’s return. Some of the goods to the
supplier and whether he received any Credit note or Tax Invoice with GST or not
and mention in your notes on accounts and discuss with management and rectify
such mistakes and pass necessary entries in the books of accounts and finalize
Profit and Loss Account. You have to verify whether your client is reversed ITC
claim on such goods returned or not and also verify whether he has received
TAX Invoice for such return goods because as per GST Law TAX invoice shall be
raised by supplier only , recipient has no right to raise any TAX invoice for such
return goods.
5. Claim of Input Tax on inward supply of Goods (Purchases): They have to obtain
and verify 100% Tax Invoices and whether he can claim ITC as per Law or not
and whether he can revert ITC as per Sec.17& 18 of the CGST Act,2017 with
GSTR-3B return for the tax periods from July’2017 to March’2018 and2018-19 or
up to notice issued and also with the books of accounts about passing of
respective entries or not.
6. Credit and Debit Notes: They have to obtain 100% original Credit and Debit
Notes from 01.07.2017 to 31.03.2018 and verify narration of the credit note and
debit notes and purpose of the raising of credit and debit notes by supplier and
obtain any written agreement or document regarding Discounts, Incentives etc.,
Because some of the discounts and incentives are taxable under GST and liable to
GST Tax if they are not paid .
7. Advance Received or Advance payments from 01.07.2017 to12.10.2017,against
supply of goods: They have to verify books of accounts with bank accounts and
Advance Voucher or P.O. copies and whether any advance is received against
supply of goods or services from 01.07.2017 to 12.10.2017 because your client is
liable to pay GST Tax on advances received against supply of goods or services
under GST Law and verify whether he applied correct rate of Tax or not on
advances received as per appropriate Acts, like IGST,CGST,SGST and UTGST . If
they are not paid, mention the same in your notes and inform to management
and try to make payment along with Interest.
8. Advance Received by Works Contractor : They have to verify books of accounts
with bank accounts about any advances received towards mobilization advance
or advance for payment against R A R Bill from 01.07.2017 to 31.03.2018 because
your client is liable to pay GST tax on advances received against RA Bill or
mobilization advance etc., and verify whether he applied correct rate of tax r not
on such advances received as per appropriate Acts, like IGST,CGST,SGST and
UTGST Acts. If he is not paid, mention the same in your notes and inform to
management and try to make payment along with interest.
9. Loading and Unloading Charges: They have to verify 100% vouchers with
GSTR-3B and GSTR-1 returns in this regard because RCM is applicable under
Sec.9(4) of the CGST Act,2017 from 01.07.2017 to 12.10.2017. If he is not paid you
have to mentioned in your notes on accounts and inform to the management and
make payment along with Interest and mention it in
“ Annual Return”.
10. Fright Charges paid on inward supply of goods : They have to obtain LR’s ,RR
and Consignment notes and verify 100% voucher with GSTR-3B and GSTR-1
returns in this regard because RCM is applicable under Sec.9(3) of the CGST
Act,2017 verify from 01.07.2017 to 31.03.2018 . If he is not paid you have to
mention in your notes on accounts and inform to the management and make
payment along with Interest and mentioned in “ Annual Return”.
11. Out ward Supply of goods (Sales) : They have to obtain 100% “ Tax Invoices” in
respect of Place of Supply, Time of Supply, Whether he has mentioned
appropriate classification HSN Code for goods or services or both and he has to
apply correct rate of Tax as per concerned Acts based on place of supply as per
GST Law,2017 or not. If any mistake is observed mention in your notes and
discuss with the management and pay the tax to the government under
concerned Acts, like IGST,CGST,SGST and UTGST Acts . Verify if your client has
received any interest from his recipients for late payment of amounts against
supply of goods or services. Because as per GST Law, Such Interest amount will
be considered as part of consideration ( part of Value of supply) and liable to GST
Tax. Regarding rate of tax , Your client on which invoice he has received interest
and what is the rate of tax applied in that TAX INVOICE, such rate is applicable
on interest component and also supplier has to raise invoice along with Interest
and mentioned full details. So, you have to note such issues in your report.
12. Handling Charges paid on inward supply of goods : They have to verify books
of accounts and 100% vouchers regarding payment of handling charges for the
 period 01.07.2017 to 12.10.2017 because RCM is applicable on such expenses
under Sec.9(4) of the CGST Act,2017 , If he is not paid tax for the above mentioned
period you have to mentioned in your notes on accounts and inform to the
management and try to make payment along with Interest .
13. Supply of good on credit basis: They have to verify 100% tax invoices with books
of accounts and bank accounts and find whether your client has received
consideration on his supplies from the recipient with 180 days from the date of
invoices. If not received whether he has to inform to recipient to reversal of ITC
on particular Tax Invoice and also he can reverse of Tax payment made under
appropriate GST Acts after 181 days in GSTR-3B and GSTR-1 and whether he has
uploaded or not. If he is not reversed you have to mention in your notes and
inform to the management and try to pass reversal entries and if any interest is
liable try to remit to the government authorities along with Interest.
14. Rent paid on business premises or godown : They have to verify from the books
of account about payment of rent on business premises or godown to the owner
(Supplier ) whether he has raised invoice for rent on business premises or
godown with GST tax or not . If supplier has not raised invoice with GST Tax,
recipient has to prepare tax invoice for rent paid and GST tax under RCM from
01.07.2017 to 12.10.2017 as per Sec.9(4) of the CGST Act,2017. You have to mention
it in notes on accounts and inform to the management and try to make payment
for that period along with Interest.
15. Advertisement Charges: They have to verify from the books of accounts about
payment of any advertisement charges , if he is having advertisement charges
invoice without GST ,under that circumstances he has to pay GST Tax on RCM
under Sec.9(4) of CGST Act ,2017 from 01.07.2017 to 12.10.2017 and raise tax
invoice for that expenses and make payment along with Interest to the
government in appropriate Acts like IGST, CGST, SGST and UTGST Acts.
16. Salaries to out sourcing employees: They have to verify from the books of
accounts about this expense , if he paid any salaries to out sourcing employees
with out labour rolls then he has to pay GST Tax on that payments under RCM
as per Sec.9(4) of CGST Act,2017 from 01.07.2017 to 12.102017. Under that
circumstances you have to mention in your notes on accounts and inform to the
management and raise tax invoice for that payments and pay tax along with
Interest to the Government under appropriate Acts like IGST,CGST,SGST and
UTGST Acts.
17. ITC claim on capital goods: They have to verify books of accounts about
depreciation charged with or without tax component. If he has claimed ITC on
that capital goods then verify depreciation account in the Balance Sheet whether
depreciation calculated on tax component or not. If he has to calculate
depreciation on tax component then you have to advice to revert ITC claim and
pay ITC claim amount along with Interest to the government under appropriate
acts like IGST,CGST,SGST and UTGST Acts.

18. Inputs purchased and used in manufactured of exempted goods , On Free

Supplies and taxable goods: They have to verify in the books of accounts along
with manufacturing accounts or production accounts and verify ITC claim and
observe that ITC relating to exempted goods reversed or not.
If he has claimed total ITC on purchase of Inputs then you have to instruct to
reversal of ITC to the extent of exempted goods and mention in your notes on
accounts and inform to the management and try to make payment along with
Interest to the government under appropriate acts like IGST,CGST,SGST and
UTGST Acts.
19. Vehicles, Computers, Laptops etc., purchased and booked in business accounts
but used for personal: They have to verify in the books of accounts and ITC
account and if observed any ITC claim in the books of accounts then you have to
instruct him for reversal of ITC to the extent of personal use and pass accounting
entries in the books of accounts and make the payment to the government along
with Interest under appropriate Acts like IGST,CGST, SGST and UTGST Acts.
20. Convenience charges paid: They have to verify about this payments in the books
of accounts and observed if any expenses incurred under this head of account
then verify whether he has paid GST on RCM or not for the period 01.07.2017 to
12.10.2017. If he is not paid then mention in your notes on accounts and inform to
the management and try to make payment along with Interest to the government
under appropriate Acts like IGST,CGST, SGST and UTGST Acts.
21. Job Work and Labour charges: : They have to verify about this payments in the
books of accounts and observe if any expenses incurred under this head of
account then verify whether he has paid GST on RCM or not for the period
01.07.2017 to 12.10.2017under GST Law.. If he is not paid then mention in your
notes on accounts and inform to the management and try to make payment along
 with Interest to the government under appropriate Acts like IGST,CGST, SGST
and UTGST Acts.
22. Sales promotion and business promotion expenses: They have to verify about
this payments in the books of accounts and observe if any expenses incurred
under this head of account then verify whether he has paid GST are not under
RCM as per Sec.9(4) of the CGST Act,2017 for the period 01.07.2017 to 12.10.2017..
If he is not paid then mention it in your notes on accounts and inform to the
management and try to make payment along with Interest to the government
under appropriate Acts like IGST,CGST, SGST and UTGST Acts.
23. Bank charges and Service charges recovered by the bank: They have to verify
about this payments in the books of accounts and observe if any expenses
incurred under this head of account then verify whether he has paid GST under
RCM or not for the period 01.07.2017 to 12.10.2017 under Sec9(4) of the GST Law..
If he is not paid then mention in your notes on accounts and inform to the
management and try to make payment along with Interest to the government
under appropriate Acts like IGST,CGST, SGST and UTGST Acts.
24. Payment to advocate fee: They have to verify about this payments in the books
of accounts and observe if any expenses incurred under this head of account then
verify whether he has paid GST TAX on Payment to advocate under RCM or not
under Sec.9(3) of the GST Law. If he is not paid then mention in your notes on
accounts and inform to the management and try to make payment along with
Interest to the government under appropriate Acts like IGST,CGST, SGST and
UTGST Acts.
25. Commission paid : They have to verify about this payments in the books of
accounts and observe if any expenses incurred under this head of account then
verify whether he has paid GST on RCM or not for the period 01.07.2017 to
12.10.2017 under Sec.9(4). If he is not paid then mention in your notes on
accounts and inform to the management and try to make payment along with
Interest to the government under appropriate Acts like IGST,CGST, SGST and
UTGST Acts.
26. Payment to sponsorship fee: They have to verify about this payments in the
books of accounts and observe if any expenses incurred under this head of
account then verify whether he has paid GST on RCM under Sec.9(3) of the GST
Law or not for the period 01.07.2017 to 31.03.2018.If he is not paid then mention in
your notes on accounts and inform to the management and try to make payment
 along with Interest to the government under appropriate Acts like IGST,CGST,
SGST and UTGST Acts.
27. Free Gifts to employees or partners etc., They have to verify about this payments
in the books of accounts and observed if any expenses incurred under this head of
account then verify whether he has paid GST under Sec.9(4) of the GST Law as
RCM or not for the period 01.07.2017 to 12.10.2017. If he is not paid then mention
in your notes on accounts and inform to the management and try to make
payment along with Interest to the government under appropriate Acts like
IGST,CGST, SGST and UTGST Acts.
28. Penalties or Interest on delayed payment of taxes: They have to verify about this
expenditure in the books of accounts and deny as an expenditure as per Income
tax Act,1962 because any penalty or interest paid on violation of act is not
permitted as business expenditure.
29. Obtain creditors and debtors ledger accounts relating business or profession
taxable person : They have to obtain ledger copies of creditors and debtors
relating to business and compare with books of accounts and observe if there is
any difference then mention in your notes on accounts and inform to the
management and rectify such omissions and finalize profit & loss account.
30. Verification of E way Bills for movement of goods: They have to verify E way
Bills generation for movement of goods for Intra-State and Inter-State Movement
of goods with quantity details, taxable value and tax component , GSTIN
numbers of Supplier and Recipient etc., with inward and out ward details etc.,
with ledger accounts of the client. Verify during the period of July’2017 to
March’2018 whether your client has paid any penalties against violation of Act on
the above subject ,such penalties are reported in your GSTR- 9 and 9C.
31. If the client is a service provider like Contractor for Civil works, Repair and
maintains etc.,: They have to verify the terms and conditions of the agreement,
P.O copies and verify RA bills raised by your client and supply of goods or
services and verify classification of SC codes and applicable rate of taxes and
eligibility of ITC claim on Capital Goods like machinery, earth moving equipment
etc., and inputs purchased etc. Verify if invoices rose in the month as per terms
and conditions of the contract and whether he has received any mobilization
advances from the recipient for the period from 01.07.2017 to 31.03.2018 and
charged GST tax on such advances and paid to the appropriate department as per
GST Law. Verify invoices details for place of supply, time of supply and
classification SAC code and applicable rate of tax etc., properly as per GST Law.
 32. Method of calculation of Closing Stock:

Consider opening Stock as per Books of Account and Rs.

Income Tax Return for the financial Year 2016-17 :
XXXXXXXXXXXXXXXXXXXXXX
Add. Purchases from April’2017 to June’2017 :
XXXXXXXXXXXXXXXXXXXXXX
( Verify figures with Original Tax Invoices ) ----------------------------------------
Less : Any discounts received relating to stocks only) :
XXXXXXXXXXXXXXXXXXXXX
__________________________
Total Stocks as per Books of Accounts :
XXXXXXXXXXXXXXXXXXXXXX
Less: Put Sale ( Purchase Cost of goods sold for the
above period) :
XXXXXXXXXXXXXXXXXXXXXX
____________________________
Closing Stock for the tax period April’17 to June’17 :
XXXXXXXXXXXXXXXXXXXXXX
As per Books.
( verify with physical Stocks ).
Rs.
Considered Sales from April’2017 to June’2017 : XXXXXXXXXXXXXXXXX
Less .G.P as per Profit & Loss Account for the financial
Year 16-17 , : XXXXXXXXXXXXXXXXX
( Formula Sales * Rate of G.P/100+ Rate of G.P )
_________________________________
Purchase of Value of goods sold for the period
April’2017 to June “2017 (considered as PUT TO SALE) :
XXXXXXXXXXXXXXXXXX