TaxTMI 
TaxTMI 
Annexure I - Methodology for Verification and Awarding scores for Part-B & Part -C of QAR
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.... were taken into account. 1 One mark shall be awarded if the respective files/records indicate that the groups' formation is done as per GSTAM provisions. Otherwise, no mark shall be awarded. 3 2[Training of officers posted to the Audit Commissionerate for the first time in GST audit process]. GSTAM Ref: Para 3.7.3 This aspect is to be verified by scrutinizing the file in which the officers were nominated to the GST Audit trainings. In the first year of GST audit all the officers shall be trained. In subsequent years this aspect may be checked only in respect of officers newly posted. 2 Two marks shall be awarded if 100% of the officers posted for first time are trained in GST audit. Otherwise, no marks shall be awarded. 4 Organizing training programmes/refresher courses on latest techniques for the benefit of officers posted after the annual transfers (other than officers posted for the first time) GSTAM Ref: Para 3.7.3 This aspect is to be verified by scrutinizing the relevant file in which correspondence on conduct of in house trainings was dealt with. 2 Two marks shall be awarded if such training programmes/refresher courses are conducted. Otherwise, no marks sha....
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....anagement & Quality Assurance section. Examine whether 20% of the taxpayers are selected for audit based on local risk parameters and uploaded/ forwarded before 15th March. 1 One mark shall be awarded if 20% of the taxpayers were selected based on local risk parameters and uploaded/forwarded before 15th March. Otherwise, no mark shall be awarded. 10 Obtaining the approval of the Chief Commissioner in respect of 20% taxpayers selected based on local risk parameters. GSTAM Ref: Para 3.4.1 (i) This aspect is to be verified from the concerned file of Risk Management & Quality Assurance section. Examine whether Chief Commissioner's approval was obtained for the 20% taxpayers selected based on local risk parameters. 1 One mark shall be awarded if the approval of Chief Commissioner was obtained. Otherwise, no mark shall be awarded. 11 Selection of 10% of the remaining taxpayers randomly and uploaded in Audit Module/forwarded to Circles before 15th March. GSTAM Ref: Para 4.2.3 & 4.3.1 This aspect is to be verified from the concerned file of the Audit Commissionerate. Examine whether 10% of the taxpayers were selected randomly and uploaded/ forwarded before 15th March. 1 ....
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....s during the Audit Year, this parameter shall become 'not applicable'. 17 Communication of DARs to the Executive Commissioners seven days in advance of MCM. GSTAM Ref: Para 3.3 This aspect is to be verified by scrutinising the concerned file in the Planning & Coordination section containing the correspondence relating to conduct of MCMs during the period under review. 1 One mark shall be awarded if such communication was made seven days in advance in respect of all MCMs conducted during the Audit Year. Otherwise, no mark shall be awarded. 18 Conduct of MCMs at monthly intervals. GSTAM Ref: Para 6.2.4 This aspect is to be verified by scrutinising the MCM file in the Planning & Coordination section. 2 Two marks shall be awarded if MCMs of all Circles were conducted every month. Otherwise, no mark shall be awarded. 19 Communication of the minutes of MCM to the Executive Commissionerates immediately for conveying their agreement/ disagreement within 15 days from the date of receipt of MCM minutes. GSTAM Ref: Para 6.2.2 This aspect is to be verified by scrutinising the MCM file in the Planning & Coordination section. 1 One mark shall be awarded if the minutes of MCM we....
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....ll be awarded. 25 Completion of audit of all the taxpayers allocated by 31st March. GSTAM Ref: Para 4.3.1 (i) of GSTAM 2019 This aspect is to be verified by scrutinising the annual plan and the details of audits conducted by the Audit Commissionerate before 31st March. 1 One mark shall be awarded on observing that all the taxpayers scheduled were audited. Otherwise, no mark shall be awarded. 26 Preparation of monthly returns based on the records/registers maintained in MIS section/Circles. GSTAM Ref: Para 6.2.5 & 3.3 (i) of GSTAM 2019 This aspect is to be verified by comparing/correla ting sample data contained in one of the monthly reports uploaded with the records/registers maintained in the Audit Commissionerate and one of the Circles. For this QAR team has to take up sample check of at least 5 fields furnished in one of the monthly returns. 1 One mark shall be awarded on observing that the data furnished in returns tally with records maintained in Audit Commissionerate/Circle. Otherwise, no mark shall be awarded. 2. STANDARDS FOR INDIVIDUAL AUDIT FILE - PRELIMINARY DESK REVIEW 1 Maintenance and updating of Registered Person's Master File (RPMF) (in format Ann....
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....person, a non- resident taxable person, and taxpayers under composition scheme 4 6[Revenue Risk Analysis and summarization of results] GSTAM Ref: 5.5.8 and Sl. No. III (7)-Part A of WPs for goods and Sl. No. XII- Part B for services Verify whether the results of Revenue risk analysis were summarized under Sl. No. III (7) of Part-A of Working papers for goods and Sl. No. XII of Part-B for services indicating possible problem areas to be included in the Audit Plan 2 Two marks shall be awarded on observing that the revenue risk analysis was conducted and conclusions were arrived at after analysing the data and same is recorded in Sl. No. III (7) of Part-A of Working papers for goods and Sl. No. XII of Part-B for services. Otherwise, no mark shall be awarded. 5 7[Trend Analysis and summarization of results]. GSTAM Ref: 5.5.9; Sl. No. III (8)-Part-A of Working Papers for Goods, Sl. No. III Part- B for services Verify whether the results of Trend Analysis were summarized under Sl. No. III (8)- Part-A of Working papers for goods and Sl. No. III Part-B for services indicating possible problem areas to be included in the Audit Plan 2 Two marks shall be awarded on observing that ....
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....a field is not applicable to the taxpayer, the same shall be mentioned in the relevant Sl. No. of Working Papers. 9 ITC availment (including ISD, if any) considered during desk review GSTAM Ref: Sl. No. III (6) Part-A of Working papers (GSTAM-VIII) for goods and Sl. No IV of Part-B for services Verify whether the areas are analysed in Sl. No. III (6) Part-A of Working papers for goods and Sl. No IV of Part-B for services 2 Two marks shall be awarded if ITC availment is considered during desk review and corresponding Sl. No. of Working Papers (GSTAM-VIII) (i.e., Sl. No. III (6) in Part-A for Goods and Sl. No. IV of Part-B for Services) are filled: otherwise, no marks shall be awarded. The standard is 'not applicable' in case the taxpayer has not availed any ITC. However, the same shall be mentioned in the corresponding Sl. No. of the Working Papers. 10 Reconciliation of ITC availed in GSTR 3B and GSTR 2A to identify gaps in the ITC availment. GSTAM Ref: 5.5.4 Verify whether the results of such reconciliation were recorded in the file. 1 One mark shall be awarded if reconciliation is done and the details recorded in file/ Working papers; otherwise, no mark shall be awar....
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....udit plan by appropriate authority. GSTAM Ref:5.6.5 This aspect will be checked on perusing the note sheet portion of the audit file as well as the audit plan. 1 One mark shall be awarded if the audit plan is approved by the proper officer. Otherwise, no mark shall be awarded. 15 11[Modifications/ additions by senior officers in the draft audit plan either at the time of approval or during review of audit plan]. GSTAM Ref: 3.4.1(ii) or 3.4.2 (iii), 5.6.6 This aspect will be checked on perusing the note sheet portion of the audit file. 2 Two marks shall be awarded if audit plan is considered for any modification or addition by any of the senior officers. Otherwise, no mark shall be awarded. 4. STANDARDS FOR INDIVIDUAL AUDIT FILE - AUDIT VERIFICATION 16 Conduct of tour of the premises for Large/Medium taxpayers. GSTAM Ref: Para 5.7.5. This aspect will be verified by the QAR team on going through the relevant entries made in Working papers (Annexure -GSTAM-VIII). 1 In case of Large and Medium taxpayers, one mark shall be awarded if the tour of the premises was carried out. Otherwise, no mark shall be awarded. In case the audit file selected relates to small taxpaye....
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....d where walkthrough has been carried out as per procedure laid out in Annexure GSTAM-VI and documented. Otherwise, no mark shall be awarded. 23 Price determination (Transaction Value) This aspect will be verified by the QAR team on examining whether relevant portion of Annexure GSTAM-VI was properly followed and documented. 1 One mark shall be awarded where walkthrough has been carried out as per procedure laid out in Annexure GSTAM-VI and documented. Otherwise, no mark shall be awarded. 24 Process of compiling GST returns This aspect will be verified by the QAR team on examining whether relevant portion of Annexures GSTAM-VI and GSTAM-VIII was properly filled. 1 One mark shall be awarded for each area where walkthrough has been carried out as per entries made in Annexure GSTAM-VI and Annexure GSTAM-VIII. Otherwise, no mark shall be awarded. 25 ITC This aspect will be verified by the QAR team on examining whether relevant portion of Annexures GSTAM-VI and GSTAM-VIII was properly filled. 1 One mark shall be awarded where walkthrough has been carried out as per entries made in Annexure GSTAM-VI and Annexure GSTAM-VIII. Otherwise, no mark shall be awarded. 'Not appl....
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....;s observations/ findings in all the verification reports are properly and clearly filled. 2 Two marks shall be awarded if all the verification reports are properly filled. Otherwise, no mark shall be awarded. 31 Taking on the record of the explanation furnished by the registered person (if party furnished reply) GSTAM Ref: Para 5.14 The QAR team will examine whether the file contains the taxpayer's reply (replies), if any, in response to the spot memos issued. 1 One mark shall be awarded if such taxpayer's reply (replies) is taken on record and considered while finalising the audit para. Otherwise, no mark shall be awarded. If no reply is received from the taxpayer it is treated as accepted and one mark shall be given. 'Not applicable' in case of Nil detection. 32 Verification of Sales information as prescribed at Point IV of GSTAM VIII GSTAM Ref: Point IV of GSTAM VIII The file will be checked to see whether the auditor mentioned his observations in the proformas A, B and C of Point IV-GSTAM Annexure-VIII of GSTAM. 1 One mark shall be awarded if A, B and C proformas of Point IV-GSTAM Annexure VIII are properly filled. Otherwise, no mark shall be awarded. 33 In....
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....e awarded. 38 Carrying out of follow up action for the audit objections wherever applicable GSTAM Ref: Para 6.4 The file will be verified whether any follow-up action for recovery/issue of SCN was initiated in respect of all paras. 1 One mark shall be awarded if follow up action was taken by way of recovery or issue of notice. Otherwise, no mark shall be awarded. In case of NIL reports this parameter will be 'not applicable'. 39 Indexing & Cross- referencing of Working papers with relevant entries in audit plan. GSTAM Ref: Para 5.9 & 5.10 It will be verified as to whether working papers are indexed & cross- referenced with each point of audit plan and whether any objections are identified during verification. 1 One mark shall be awarded if such cross- referencing and indexing done. Otherwise, no mark shall be awarded. 6. STANDARDS FOR INDIVIDUAL AUDIT FILE - PROFESSIONAL CONDUCT 40 Information to taxpayer about the audit process. GSTAM Ref: 6.1.1, 6.1.2, 5.13, 5.14, 5.16.1 This parameter can be verified on scrutiny of the following in the relevant audit file: (I) ADT -01 (intimation letter to the taxpayer). (II) Spot memos explaining about the short levies id....
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....One mark shall be awarded if DAR is finalised within stipulated time; otherwise, no mark shall be awarded. 45 Issuance of the final audit report and sending a copy to registered person within 30 days from the date of MCM. Ref: Para 6.3 of GSTAM, 2019 read with Sec 65(6) of CGST Act and Rule 101(5) of CGST Rules Verify the date of MCM and the date on which FAR was sent to the registered person. 1 One mark shall be awarded if FAR sent to registered person within 30 days of MCM. Otherwise, no mark shall be awarded. 46 Uploading FAR using Audit Report Utility. GSTAM Ref: 6.3 This aspect is to be verified from the audit file. 1 One mark shall be awarded if the FAR was uploaded. Otherwise, no mark shall be awarded. 47 Completion of audit within 3 months from the date of commencement or within such period as extended by Commissioner. Ref: Sec 65 (4) of CGST Act, 2017 Audit team to examine the difference between commencement & completion dates (Audit report finalization in MCM) and whether it is within the stipulated time. 1 One mark shall be awarded if the audit is completed within stipulated time of three months or such extended period. Otherwise, no mark shall be awa....