Ratio Analysis of Database (Procedure/Formats Separate for Goods and Services)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....entify claiming of input tax credit on inputs used in exempted products. Annual or Monthly GST returns (As applicable) 2. Total inward supply cost: Total outward supply value i) This ratio shows the part of outward supply value represented by inward supply cost. The balance outward supply value represents the value addition on account of non-taxable elements like wages, overheads, depreciation, interest. ii) Theoretically, this ratio should have a bearing on the ratio of Input tax credit: Total tax payment (Sl.No.1). iii) If this ratio is lower than ratio at Sl.No.1 or more than previous year's ratio, it may be on account of the following: a) Wrong availment of credit like cases of availing value of goods as credit or availment of c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rd supply of Scrap: Total outward supplies made If ratio in the current year is lower, it may be on account of the following: i) outward supply of scrap made without payment of duty ii) Non receipt of scrap from job worker. Profit & Loss Account/Trial Balance. 6 Value of exempted outward supply: value of total outward supplies made i) To identify outward supplies made in the guise of exempted supplies. ii)To identify supply of essential parts of outward supply as exempted supplies. iii) To identify under valuation of outward supplies by overvaluing exempted outward supply Profit & Loss Account. 7 Input tax credit availed on inputs: Purchase price of inward supplies i) Non reversal of credit/payment of duty on inputs rejected/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....st of inputs received (both Goods & Services) : Value of Taxable outward supply (say A) Credit availed: Total GST payable (say B) 1. Profit & Loss Account; 2. Income & Expenditure Account (in case of non-profit organisations like clubs); and 3. GST return Compare the ratio over a period of 3-4 years or with the Taxable person rendering the same services. If the ratio is increasing over a period of time or it is more when compared to other suppliers, then there is a possibility of under valuation by showing outward supply income as non-taxable / exempted income. Other incomes not charged to GST : Value of taxable outward supply Balance Sheet A comparison of this ratio with the rate of growth of the value of taxable outward supply du....