Using Ratio & Trend Analysis in GST Audits to Spot Errors & Non-Compliance: Annexure 14, GST Audit Manual 2023

Annexure 14 of the Model All India GST Audit Manual 2023 focuses on using ratio and trend analysis to identify potential errors or non-compliance in GST filings. It highlights how comparing data fields can detect issues such as incorrect Input Tax Credit (ITC) claims, undervaluation of goods, and suppression of sales. The annexure provides examples of ratios that audit officers can apply, such as the proportion of exempted supplies to total supplies, to uncover irregularities. It also suggests analyzing trends over multiple years to identify patterns in tax liabilities and ITC claims, aiding in comprehensive audits.

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