- 1 What are Parameter for selection of GST taxpayers for Audit
What are Parameter for selection of GST taxpayers for Audit
Following parameters can be adopted for selection of GST taxpayers for audit:
Parameter No 1 :-
Taxpayers maintaining excess IPT continuously during the year.
Parameter No 2 :-
Taxpayers showing fall in taxable turnover in spite of increase in purchase continuously for two return periods.
Parameter No 3 :-
Taxpayers showing low gross profit which is not in tune with the line of business.
Parameter No 4 :-
Taxpayers whose Sale/Purchase ratio is less than 1.0 over last 12 months.
Parameter No 5 :-
Taxpayers conceding substantial quantities of closing stock as compared to purchase and sales.
Parameter No 6 :-
Parameter No 7 :-
Manufacturing units showing G.P less than 10%
Parameter No 8 :-
Taxpayers showing substantial changes in trade practices – eg:-
- excessive stock transfer,
- material decline in interstate purchases,
- material increase in exports/sales to exporters.
Parameter No 9 :-
Taxpayers having Complex transactions such as :-
- Consignment sales,
- Branch transfers,
- Transit sales etc.
Parameter No 10 :-
Based on Third party information like, Banks, Income Tax, Service Tax, Central GST, Manufactures, other Government departments etc.
Parameter No 11 :-
Based on local intelligence or serious complaints from public
Parameter No 12 :-
Taxpayers dealing in evasion prone commodities showing less growth by 10% from average growth rate in that area of circle jurisdiction.
Parameter No 13 :-
Return defaulters and cancelled taxpayers having active transactions as per GSTN data.