Audit of builders

[Rajesh Kumar]

Sir/ Madam

Please share the links of detailed points to be kept in mind while auditing a builder and developer. Calculation of reversalable ITC, Identification of advances and other payments on which GST payble, Expenses on which GST payble, Calculation of GST on sale of developed plots, verification of Trans 1.

What are the GST evasion prone areas for builder and developer and how adjust them.

New task, please guide.

thanks in advance.

AI Summary

GST audit of builders highlights compliance risks in Input Tax Credit transition, advances treatment, and reverse charge liabilities.
Primary audit concerns for builders under GST include correct claim and reversal of Input Tax Credit via Tran-1, treatment of semi finished inventory, invoicing and tax point issues when GST is declared before receipt, identification and adjustment of advances, reversal of ITC for completed pre GST projects, transition reconciliations, treatment of developed plots, and application of reverse charge for supplies from unregistered persons; auditors should verify TRAN 1 and related contractual allocations between landowners and developers.