Gst Payers To Get ‘risk Scores’
Jun 28, 2019 By Admin
In the first ever audit exercise under the Goods and Services Tax (GST) system, taxpayers will be divided into three categories based on turnover and subsequent ‘Risk Scores’ will be assigned to them to decide the level of audit scrutiny they will face.
GST payers, along with their risk scores, have been divided into three categories — large, medium, and small. Such guidelines have been issued for GST audits for the first time. Assigning risk scores to various dealers for selection of audit are needed for authorities to focus on cases where a possibility of tax leak is more.
Businesses should be very careful in submission of the GST audit data and ensure that it is reconciled before submission as this data will also be used for live audits in future in addition to being used to determine the taxpayers who would be subjected to the audit.
Since this will be the first onsite GST audit, special care should be taken by officers since the GST is a new law and taxpayers are not too familiar with the GST audit. Officers should take a liberal approach during first GST audit and educate taxpayers about it.
Published by : RAKESH KANWAR & CO.
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