AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
🚨 1 GST audit and ₹1.04 crore at stake.
Audits today don’t look at last year.
They dig 3 to 5 years deep.
And they assume intent to evade …unless you prove otherwise.
That’s what happened to a funded D2C brand we worked with.
The Show Cause Notice wasn’t because of tax evasion.
It was because their house wasn’t in order.
→ GSTR-9C and financials didn’t match
→ Cross-charge was missing
→ Refunds had shaky documentation
→ ITC wasn’t reversed under Rule 42/43
→ Vendors weren’t compliant …and nobody was tracking it
So, what’s the fix?
You need to run your audit before the officer does.
And for that, we built…
The 10-Point Checklist CFOs are using to stay audit-ready:
1. Match GSTR-2B, 3B & Books
2. Fix inter-GSTIN transactions
3. Audit export & refund docs
4. Ensure ISD compliance (April 2025 onwards)
5. Match GSTR-9C & financials
6. Track vendor compliance & 180-day rule
7. Respond to DRC-01As
8. Value branch/related-party supplies accurately
9. Justify Section 17(5) credits
10. Maintain a single audit file
This checklist isn’t a theory.
It’s what we use with high-growth clients.
Because when the audit hits…
You don’t get time to explain.
You only get time to defend.
Want a copy of this checklist?
Comment “Audit Ready” and I’ll send it over.
1 GST audit and ₹1.04 crore at stake.
Pradeep Reddy Unnathi Partners
GST audit readiness demands proactive reconciliation and a ten-point checklist to substantiate ITC and refund claims. A funded D2C taxpayer triggered a GST audit after discrepancies between GSTR 9C and financials, missing cross charges, shaky refund documentation, unreversed ITC under Rule 42/43, and vendor non compliance. The author recommends a ten point pre audit checklist for CFOs focused on reconciling GSTR 2B/3B with books, correcting inter GSTIN transactions, auditing export/refund documents, ensuring ISD compliance, reconciling GSTR 9C and financials, tracking vendor compliance and the 180 day rule, responding to DRC 01As, valuing branch/related party supplies, justifying Section 17(5) credits, and maintaining a single audit file. (AI Summary)