1. When an audit notice is issued by the jurisdictional officer check if empowered to give the notice.
2. Any other parallel Audit/ investigation already conducted then can ask for a waiver.
3. Seek adjournment if information/ documents are not ready.
4. Identity of the each and every member of the audit team must be verified.
5. Keeping the information in an organized manner ready prior to the visit by the audit party; These may include financial statements, GST returns, details of inward and outward supplies, ITC availed and RCM paid, invoices, debit note/credit note/Eway bills generated.
6. Get pre-audit done internally / externally by competent professional CAs.
7. During pre-audit if any valid tax liability is omitted/ unpaid found [such as RCM on import of services/ GTA services], discharge voluntarily with interest[to avoid penalty- if found in the course of dept audit].
8. Be clear in facts and documentation during the audit. The right person for handling audits who is thoroughly conversant with the business activities and understanding of GST compliances.
9. Professional can be involved as an authorized representative to handle the audit and represent the taxpayer;
10. Providing all the necessary information/documents called for by the audit team;
11. If the department asks for original documents – Make them available on a sample basis backed by a CA certificate;
12. Submit the relevant information called for with the acknowledged covering letter.
13. Replying to all the queries to the audit team in writing
14. Explain in brief & submit in writing – Mention view based on the advice of expert GST consultants
15. Never deposit any amount under pressure – if paid file a letter intimating such payment, mention specifically that “the payment is made under the directions of audit team under protest”
16. Unofficial demands by the aggressive officers in the course of audits – Payment must not be demanded under coercion/ harassment
17. Oral directions for payment/ reversals. It is suggested to keep everything in writing – Submit a letter stating the complete sequence of events with full facts &details;
18. The type of replies given during the audit would make the foundation strong for future litigation;
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19. Reply to the audit note citing legal provisions+ decisions in depth and within time
20. Pay Taxes voluntarily with interest – if audit observations are genuine