Be Audit-Ready, Always
GST Audits can be stressful. However, if you maintain your books correctly in Tally Prime throughout the year, an audit is just a formality. Here is the HCS expert checklist for accountants.
The 10-Point Checklist
1. GSTR-3B vs GSTR-1 vs Books: The Holy Trinity. Ensure turnover and tax liabilities match across all three.
2. ITC Reconciliation (2A/2B): Have you claimed ITC only for invoices appearing in GSTR-2B? Tally's auto-reconciliation feature makes this easy.
3. Reverse Charge (RCM): Check ledgers for GTA (Transport), Legal Fees, and Security Services. Have you paid RCM liability in cash?
4. 180-Day Rule: Have you paid your creditors within 180 days? If not, you must reverse the ITC claimed.
5. E-Way Bill Reconciliation: Does your sales turnover match the E-Way bill data? Deviations invite notices.
6. Hormonized System (HSN): Are you using 6-digit (turnover > 5Cr) or 4-digit HSN codes correctly?
7. Credit Notes: Ensure all sales returns are properly recorded with original invoice references.
8. Place of Supply: Check for IGST vs CGST/SGST errors. Billing an out-of-state party with local tax is a common error.
9. Stock Valuation: Does your closing stock value in Tally match your physical stock statement given to the bank?
10. Document Series: Are your invoice, receipt, and payment voucher numbers sequential without missing gaps?How Tally Helps
Tally Prime has a built-in
"Go To > GST Reports" section that highlights mismatches, HSN errors, and RCM liabilities automatically.
Need a pre-audit system check? HCS offers a "System Health Check" service to identify gaps before the tax officer does.