The Gujarat State Tax Department, the central body for the administration and collection of different taxes in the state of Gujarat, has produced the Model Goods and Services Tax (GST) Audit Manual 2022 for State tax officials and officers.
The model GST Audit Manual is designed to be a complete resource that would aid Gujarat State audit officers in selecting taxpayers for audit, conducting the audit, and concluding the audit in an efficient and effective way.
The experience of the audit each year plays a critical role in updating the selection criteria in the dynamic process of audit selection. However, in GST, choosing the right audit depends on determining the risk profile of the Auditees using a scientific manner. The guidebook also covers the elements of such risk profile evaluation.
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The 2022 Model GST Audit Manual discusses (i) how to investigate the details that require careful consideration, (ii) how to set up a successful desk review before the audit actually begins, and (iii) how to conduct a quality audit under GST that would not only demonstrate the effectiveness of an audit officer but would also successfully accomplish the objectives of monitoring compliance management and revenue augmentation.
The manual has also concentrated on building a vertical hierarchical structure so that audit officers may present their findings to the appropriate higher authority. This would undoubtedly assist the audit officer in developing a good audit strategy.
The purpose of a GST audit is to analyze the credibility of a taxpayer’s self-assessed tax burden based on the twin tests of the correctness of the taxpayer’s statements and the accounts kept by the taxpayer, with two effects: deterrent and preventative.
The Manual’s contents include identifying areas of concern, becoming aware of procedural elements, law provisions, legal amendments, notices, circulars, rates, and so on, as well as the final computation of tax dues.
