Mumbai: The Center has drawn a lengthy outline for GST audit checklist. It has been only 20 days that the levy had been passed out. The draft includes detailed information of risk involved, target industry and an introduction of potential auditees as well. The decision has been taken to examine the transition of India to a brand new regime.
To turn the decision into reality, the Government of India had met with the tax commissioners of the country. The discussion encompassed the subject of the GST audit process and the risk areas. At the beginning of the next week, therefore, the officials from tax commission would visit different corporate houses to analyze whether the transition which took place on July 1st has been included to the company rule book.
The process of inspection would differ from the traditional tax commission inspection process. An anonymous tax official has quoted that “They would focus on credit transfer or transition from the old tax regime to GST. The government already has the important sets of data in place for this.”
The government has expressed its concern that the companies would exploit the risk factors to avoid paying GST. According to the anonymous tax official mentioned above Big Data analytics has been used to categorize the GST audit process. Also, the same has been used to evaluate the risk factor.
To create the checklist of the audit, Government has used detailed statistics of the last couple of years.
This checklist is said to be detailed enough that it could be used to educate the taxpayers and also create “least inconvenience.”
Even though the drawn checklist comes with a high promise, the industry experts are concerned that the scrutiny could lead many companies to increase the tax related efforts, because a GST audit checklist would mean that the tax commission would take past tax paying details into account which analyzing the transition.