GST Audit Resolution – ₹10 Lakh Demand Reduced to ₹52,793

A GST audit was initiated for a business covering multiple financial years, with initial audit observations indicating a potential liability of approximately ₹10 lakh.

Key Challenge

The audit involved a detailed review of GST records across several financial years, requiring reconciliation of the department’s observations with the business’s books, GST returns and supporting records.

Our Approach

Our Tax Department conducted a comprehensive review of the audit observations and represented the business before the GST authorities. We prepared detailed reconciliations and submissions addressing the issues raised during the audit.

Through continuous discussions and effective representation with the audit officer, we clarified the discrepancies and supported the position with appropriate documentation and explanations.

Outcome

Following the detailed submissions, reconciliations and discussions, the GST audit proceedings were successfully concluded with a final liability of only ₹52,793, against the initial observations of approximately ₹10 lakh.

The potential GST liability was reduced by approximately ₹9.47 lakh.

Key Takeaway

Strong GST reconciliation, detailed documentation and effective representation can significantly reduce tax exposure during departmental audits and help businesses achieve a favourable resolution.