GST Audit Checklist for Businesses: Records that Officers Commonly Ask For

A GST audit is a verification process. The tax department examines records to confirm compliance. Officers rely on documents. Oral explanations carry no value without records.

Businesses face audit risk when records are incomplete. Missing documents lead to adverse findings. A business that prepares its records in advance controls the audit process and reduces litigation risk.

This article explains the records that GST officers commonly ask for during audit.

1. Registration and Master Data Records

Audit proceedings begin with verification of the taxpayer’s identity and registration details. Officers first confirm whether the business operates strictly within the registration details available on the GST portal.

Businesses must maintain the following records:

• GST registration certificate
• registration amendment orders
• proof of principal place of business
• proof of additional places of business
• authorisation for signatories handling GST matters

Any mismatch between actual operations and registration details raises audit concerns and invites further scrutiny.

2. GST Returns for the Audit Period

GST returns form the base of the audit because they reflect the tax positions declared by the business. Officers compare returns with books of accounts to identify discrepancies.

Businesses must keep the following returns for the entire audit period:

• GSTR-1
• GSTR-3B
• GSTR-9
• GSTR-9C, where applicable

Returns must match accounting records, and delayed filing increases exposure to interest and penalty.

3. Books of Accounts

Books of accounts establish the financial trail of transactions and support figures reported in GST returns. Officers rely on these records to verify turnover, expenses, and tax calculations.

Businesses must maintain complete and GSTIN-wise books including:

• trial balance
• general ledger
• sales ledger
• purchase ledger
• expense ledger

Partial or combined records weaken audit defence and invite adverse inference.

4. Outward Supply Records

Outward supply verification forms a major part of GST audits because it directly affects tax liability. Officers verify whether tax has been correctly charged and reported.

Businesses must maintain:

• tax invoices
• bills of supply
• export invoices
• debit notes
• credit notes

Invoice numbering must be continuous, and missing or cancelled numbers require proper explanation supported by records.

5. Turnover Reconciliation Statements

Turnover mismatch is one of the most common audit objections raised by officers. Reconciliation closes this gap and clarifies tax position.

Businesses must prepare reconciliation statements between:

• turnover as per books of accounts
• turnover as per GSTR-1
• turnover as per GSTR-3B
• turnover as per annual return

Each difference must be identified clearly and supported with documents.

6. Input Tax CreditDocuments

Input tax credit remains a sensitive audit area due to revenue impact. Officers verify whether credit has been availed strictly as per law.

Businesses must maintain:

• purchase invoices
• supplier master data
• ITC registers
• GSTR-2B data

Invoices must contain mandatory fields, and ITC without valid documents is liable for reversal.

7. Input Tax Credit Reconciliation Statements

Reconciliation of ITC is mandatory during audit because officers compare multiple data sources.

Businesses must reconcile:

• ITC as per books of accounts
• ITC as per GSTR-3B
• ITC as per GSTR-2B

Each mismatch must be explained with reasons such as timing differences or reversals.

8. Reverse Charge Mechanism Records

Reverse charge compliance receives focused audit attention because liability shifts to the recipient.

Businesses must maintain:

• list of expenses attracting reverse charge
• self-invoices
• payment vouchers
• proof of tax payment

Missing records in reverse charge cases lead to direct tax demand.

9. E-Way Bill and Goods Movement Records

E-way bills establish physical movement of goods and link supply with transportation.

Businesses must maintain:

• e-way bill register
• invoice and e-way bill linkage
• vehicle and transporter details

Missing linkage raises suspicion of unreported supply.

10. Stock and Inventory Records

Stock records help officers verify whether supplies reported match physical movement and consumption.

Businesses must maintain:

• item-wise stock register
• opening and closing stock records
• loss, write-off, and free sample details

Unexplained stock differences attract tax liability.

11. Job Work and Delivery Challan Records

Job work transactions create audit exposure because goods move without tax payment at the initial stage.

Businesses must maintain:

• job work challans
• delivery challans
• records of goods sent and received

Absence of proper challans leads to adverse audit findings.

12. Bank Statements and Payment Proofs

Bank statements provide an independent trail of receipts and payments.

Businesses must provide:

• bank statements
• payment receipts
• refund credit entries

Officers compare bank inflows with turnover declared in returns.

13. Agreements and Contracts

Agreements define the nature and terms of supply, which affect classification and valuation.

Businesses must maintain:

• customer agreements
• vendor contracts
• service agreements

Contracts must support the tax position adopted in returns.

14. Fixed Asset and Capital Goods Records

Capital goods ITC requires compliance with specific conditions.

Businesses must maintain:

• fixed asset register
• capital goods invoices
• ITC availed details

Improper credit on capital goods leads to recovery with interest.

15. Credit and Debit Note Registers

Credit and debit notes affect tax liability and turnover.

Businesses must maintain:

• credit note register
• debit note register

Notes must link to original invoices.

16. Refund and Export Records

Refunds and exports face strict audit checks because they involve revenue outflow.

Businesses must maintain:

• shipping bills
• LUT or bond
• refund applications
• sanction orders

Mismatch affects zero-rated supply benefits.

17. Financial Statements and Audit Reports

Officers rely on financial statements to understand business operations.

Businesses must maintain:

• balance sheet
• profit and loss account
• notes to accounts
• statutory audit report
• tax audit report, where applicable

These documents guide audit planning.

18. Previous Audit and Litigation Records

Past audit and assessment records influence the current audit approach.

Businesses must maintain:

• previous audit reports
• assessment orders
• appeal orders
• Past findings often shape audit focus areas.

19. Record Retention Requirement

GST law mandates retention of records for seventy-two months from the due date of the annual return. Failure to retain records violates statutory obligation.

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