How a GST implementation consultant helps prepare for the GST audit?

For any business, the assistance of a GST implementation consultant is essential for ensuring the efficient application of GST laws and rules. An audit of a registered business’s records, returns, and other documents is known as a GST audit. The Goods and Services Tax (GST) encourages effective tax collection, lowers corruption, and facilitates the movement of goods across states. In this blog, we’ll discuss how a GST Consultant from a premium services provider like CAC can assist you in ensuring your company’s financial footprint and obligations are compliant.

How does a GST consultant help prepare for the GST audit?

Form GSTR-9C is made up of two separate certificates that are part of the GST audit procedure. The first is where the statutory auditor prepares and certifies the reconciliation statement, while the second is prepared and certified by someone other than the statutory auditor. According to the ICAI’s most recent announcement, internal auditors are not permitted to be appointed as GST auditors.

Given the importance of the GST audit and the amount of data needed by the audit forms, businesses should hire a GST implementation consultant from a premium provider like CAC, who can assist with such when it comes to audit preparations.

Below, we go over what this preparation looks like.

  • File Annual Return

Regardless of a business’s turnover, all registered taxpayers must file an annual return under GST. It includes extensive reconciliation, whereas the audit is reconciliation between both the annual return and the audited financial statements. Even though both are due on the same day, the GST audit requires the yearly return to be filed first. As a result, businesses must file yearly returns before the deadline to guarantee that the GST audit runs smoothly. Additionally, taxpayers must verify that the yearly returns contain accurate statements that are free of errors.

  • Several Types of ITC Reconciliation

Businesses will be required to prepare numerous forms of input tax credit reconciliations while completing an annual return and the reconciliation portion of an audit. For example, according to the auto-generated Form GSTR-2A, the yearly return requires a reconciliation of the ITC available in monthly returns. Furthermore, claimed ITC must be split three ways: inputs, input services, and capital goods credits. These new regulations could be difficult for organizations to comply with, and they may necessitate careful preparation to ensure that sufficient data is delivered to auditors.

  • Breakdown of Financial Statements

At the GSTIN level, reconciliations of turnover or input tax credits are requested on Form GSTR-9C. This means that taxpayers must keep audited financial accounts on hand and branch them out at the GSTIN level. Companies that do not keep branch-by-branch financial statements may face difficulties.


Given the complexity of GST filings and the massive quantity of data that must be compiled and processed, it is strongly advised that businesses get outside help to ensure a smooth journey through the GST audit phase. A company should hire a GST implementation consultant as soon as possible, design a project strategy, begin gathering documents and information, and set up internal processes for filing annual reports. CAC’s professionals have assisted several businesses in filling out their GST forms in a timely and effective manner. To become one of them, contact our staff immediately.

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