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Audit documentation is a written record, including electronic documents that are prepared during the course of the audit. The audit documentation forms the foundation for auditors to preserve the various scrutiny identified during the audit. These act as proof of performance of the audit and also safeguard the auditor at the time of the dispute. Besides, any type of document is vital to determine the path of any transaction; it plays an essential role in all the audits under the GST law and also in general. Furthermore, the audit documentation and its working papers are the vital records of the work done, conclusions made, and the opinion drawn. As per GST’s perspective, audit documentation or working papers are documents received as evidence during the conduct of the GST compliance audit.
Numbers cannot speak, but documents prepared properly can speak the numbers. This is how the properly documented working papers can show the numbers, which is how an auditor proves to others, including a court of law, that the audit was conducted effectively and methodically.
Read our article:Power of Tax Authorities to conduct Special Audit under GST Act
Table of Contents
Audit according to GST involves an examination of records or data, returns and other documents maintained by a GST registered person. It ensures the accuracy of the declared turnover, paid taxes, refund claimed, input tax credit availed and assess other compliances under the GST Act to be checked by an authorised expert.
GST is a taxation regime based on trust, wherein the taxpayer is required to self-assess his tax liability, pay the taxes and then file returns. Hence, to ensure whether the taxpayer has properly self -assessed his tax liability there must be a strong audit mechanism. Several measures are taken by the Government for implementing GST and audit is one amongst them.
The auditor must prepare GST audit documentation that is adequate to permit a skilled auditor, having no previous connection with the audit to be aware:
1. The nature, timing and the number of audit procedures performed to comply with the legal requirements.
2. The results of the audit process carried out and the audit evidence attained
3. Relevant matters arising during the audit and the conclusion reached thereon, and also significant professional judgments made on reaching these conclusions.
The following are the basic aspects and purposes of GST Audit Documentation:
The necessary documents for the GST audit documentation are enumerated below:
The list given above is not inclusive, and any other document or letters which are compulsory or seems to be necessary can also be documented.
The team performing audit must be aware of the significance and contents of GST audit documentation working papers. Having an essential source of information is the key for successful completion of an audit. Any observation made without documentary support can decrease the importance of it. The Important contents of GST audit documentation working papers are as follows:
Some various misunderstandings or myths prevent the auditors from adequately documenting the GST audit working papers and documents:
For all the recurring audits, the working papers must be split by the GST auditor between:
The permanent audit file is enumerated below:
The current audit file contains the following elements:
The GST audit documentation work is the asset of the auditor.
The GST audit can be performed only by a Chartered Accountant (CA) or a Cost Accountant. They can perform GST Audit as per Section 35 of the CGST Act.
The following individuals are appointed as an auditor:
The conduct GST Audit and issue its report the following procedures must be applied:
A partner, proprietor or Board of Directors in case of a Company must appoint a GST Auditor at the start of the financial year.
The essential accounts or records for review are as follows:
The final GSTR-9C can be certified by the same CA who had conducted the GST audit, or it can also be approved by any other CA who did not perform the GST Audit for that particular GSTIN.
The following points must be reported and also certified by the GST Auditor or the certifier:
The documents to be furnished by the taxpayer are as follows:
We at Enterslice, with the help of our professionals, will help you sail through this GST Audit documentation work. You will find experienced Chartered Accountants who will help you throughout this process.
Though it is not mentioned in the GST laws[1] that the GST audit documentation is mandatory for the GST audit, it is still suggested to adopt the audit documentation specified in the generally accepted auditing standards and the principals apply to any other statutory auditors. Further, the audit documentation and working papers are the essential record of the work done, conclusions made, and the opinions expressed. From the GST’s perspective, audit documentation or working papers are documents achieved as evidences during the conduct of the GST compliance audit.
Also, Read: What are the Provisions of Audit Under GST.
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