GST Audit Resolution – ₹2.57 Crore Demand Reduced to ₹30.65 Lakh

A GST audit was conducted for a business covering the financial years 2023–24 to 2025–26, resulting in a proposed overall demand of ₹2,56,93,106.

Key Challenges

The case involved extensive verification of GST records, transaction-level reconciliation and examination of supporting documents. The complexity of the matter required detailed analysis of the audit observations and multiple rounds of representation before the GST authorities.

Our Approach

Our Tax Department conducted a comprehensive review of the observations raised during the audit. We prepared detailed reconciliations, supporting documentation and a comprehensive technical reply addressing the department’s queries.

Through continuous representation and detailed discussions with the GST authorities, we clarified the discrepancies and substantiated the business’s position with relevant records and documentary evidence.

Outcome

Following our submissions and sustained representation, the proposed GST demand was significantly reduced from ₹2,56,93,106 to a final liability of ₹30,64,978, with the remaining demand being dropped.

₹2,26,28,128 in proposed GST liability was successfully eliminated.

Key Takeaway

Strong technical analysis, accurate reconciliation and effective representation before tax authorities can help businesses significantly reduce disputed GST liabilities and achieve favourable audit outcomes.