GST Audit Preparation: Checklist for Small Business Owners

A GST audit doesn't have to be stressful. Use this checklist to keep records, reconcile data, and walk into the audit prepared.

Documents to keep ready

Tax invoices and credit/debit notes for the audit period. Purchase invoices. Bank statements. GSTR filings (1, 3B, 9). E-way bills if applicable. Stock register. ITC ledger.

Reconciliations to complete

GSTR-1 vs books of accounts. GSTR-3B vs GSTR-1. GSTR-2B vs purchase register. Bank statement vs invoice payments. Stock register vs physical count.

Common audit issues

ITC claimed on bills not in GSTR-2B. Wrong place of supply on inter-state invoices. Missing HSN/SAC. Composition dealers issuing tax invoices. Non-disclosure of advances received.

How to prepare ongoing

Reconcile monthly, not yearly. Use a billing app that tags ITC eligibility and flags missing GSTRs automatically.

During the audit

Be cooperative, ask for time to retrieve old records, and never reply on the spot to ambiguous queries. A registered CA on call helps.

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