The Department of Gujarat State Tax, the nodal agency for the administration and collection of various taxes in the State of Gujarat has released the Model Goods and Services Tax ( GST ) Audit Manual 2022 for the State tax officials and officers.
The model GST Audit Manual is intended to be developed as a comprehensive document which would be helpful for the audit officers of the Gujarat State throughout the entire process of selection of taxpayers for audit till the completion of audit in an efficient and effective manner.
Audit selection is a dynamic process where the experience of audit in each year plays a vital role in modifying the selection criteria. However, in GST, ascertaining a risk profile of the Auditees based on a scientific approach is vital for selection of audit. The aspects of such risk profile assessment are also discussed in the manual.
The Model GST Audit manual discusses the (i) methods of looking into the aspects that demand meticulous attention, (ii) methods of preparation for an effective desk review before Audit actually commences and (iii) methods for conducting a quality audit under GST that would not only reflect the efficiency of an audit officer but would also successfully achieve the goal of monitoring compliance management and revenue augmentation.
The manual has also focused on developing a structure for the vertical hierarchy so that audit officers can place their findings before the appropriate higher authority. This would definitely help the audit officer to prepare a proper audit plan.
Audit in GST intends to evaluate the credibility of self-assessed tax liability of a taxpayer based on the twin test of accuracy of taxpayer’s declarations and the accounts maintained by the taxpayer, having two effects – deterrent and preventive.
The contents of the Manual cover identification of areas of concern, awareness on procedural aspects, law provisions, legal changes, notifications, circulars, rates etc and final computation of tax dues.
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