The Central Board of Indirect Taxes and Customs (CBIC) on May 16, 2023, issued the Model All India GST Audit Manual 2023
The guidelines provided in this manual are intended to enable audit officers to carry out effective audits in a uniform, efficient, and comprehensive manner adopting the best practices of the States and the Centre and international practices.
This Manual aims to be an extensive and comprehensive document with a holistic approach towards GST audit which will not only facilitate the Audit Officers of the Centre and the States/UTs but will also create an impact in facilitating the auditees during the exercise of audit
The objective of this manual is to provide insights into the principles and procedures of audit and to give a holistic view of the entire process to the users of this Manual.
The following has been stated namely: -
• Chapter 1 lays down the Definition of Audit and Legal Provisions.
• Chapter 2 states the Purpose and Principles of Audit.
• Chapter 3 provides the Audit Flow Chart and Steps of the Audit.
• Chapter 4 incorporates the criteria for Audit Planning and Preparation, Desk Review, and Audit Plan
• Chapter 5 mentions the Conduct of the audit, its findings, and the finalization of the audit
• Chapter 6 lays down the Follow up of the audit
• Chapter 7 provides for the Audit in Certain Circumstances
• Chapter 8 states the Thematic and Multi-Locational Co-Audit
• Chapter 9 Capacity Building in specialized areas
The following Annexures have been attached namely: -
• Annexure 1: Notice for conducting an audit
• Annexure 2: Letter seeking mutual assistance
• Annexure 3: Questionnaire for auditee
• Annexure 4: List of documents/ statements and books of accounts to be produced for the purpose of the audit
• Annexure 5: Format of a sample Audit Plan
• Annexure 6: Final Audit Report (FAR)- FORM GST ADT 02 108 Annexure 7: Format of status report to MCM
• Annexure 8: Checklist for key points for supply and supply of Goods or Services or both
• Annexure 9: Levy of tax on Reverse Charge Mechanism (RCM)
• Annexure 10: Checklist for key points for the value of supply and value of supply
• Annexure 11: Input Tax Credit
• Annexure 12: Important Changes in GST Laws and Rates during 2017-18 & 2018- 2019
• Annexure 13: Due dates and extension of due dates of submission of various returns
• Annexure 14: Ratio Analysis & Trend Analysis
• Annexure 15 Study of Profit and Loss Account and Balance Sheet
• Annexure 16: Indian Accounting Standards in the Perspective of GST
• Annexure 17: Recommendations for Model GST Audit Best Practices and Procedure as per the report of the sub-committee on ToR No. 1
• Annexure 18: Composition and purpose of the Committee of Officers on GST Audit along with modified ToR
