Analysis Under GST Audit

The GST auditor will rely on more than just the information you provide but will also conduct a number of analyses that will help them get to the root of any transaction. Under the process of GST audit, there are normally there are 3 types of analysis that an Auditor might conduct:

1. Registration/Migration Analysis

The GST Auditor will ensure that previous registration details (if any) under previous Acts are collected and verified. Updated information about the following areas which might be reviewed:

a. Business promoters,

b. Additional places of business,

c. Bank accounts,

d. Authorized signatories

e. Other information

Furthermore, if pre-GST registration data is available, the Audit Officer would analyze trends and patterns in turnover, tax payment, business nature, and so on.

2. Return Analysis

A GST auditor will gather a lot of information before beginning the audit to create a foundation for the audit. Before beginning the Audit program, the most important analysis is return analysis. A lot of the groundwork can be done by analyzing the available return figures and gaining a first-hand understanding of the auditee's business trend.

3. Trend Analysis

This analysis concentrates on any anomalies that may have occurred in a given fiscal year compared to previous fiscal years. For audit purposes, a comparison of absolute values or specific ratios over time is required to see the trend and the extent of deviation from average values during any given period. Trend analysis may reveal areas where taxes are not being paid or are being evaded.