M&A transactions fail when undisclosed GST liabilities surface after closing. A GST health check identifies contingent liabilities, compliance gaps, and ITC risks before the deal is signed. This service has become essential for any acquisition or investment transaction.
This article explains what a GST health check covers.
Historical Compliance Review
- Return filing consistency across all GSTINs (GSTR-1, GSTR-3B, GSTR-9).
- GSTR-1 vs GSTR-3B vs books reconciliation.
- GSTR-2B vs purchase register reconciliation.
- Turnover reconciliation with income tax returns.
Contingent Liability Assessment
- Pending notices and demands.
- Litigation exposure.
- RCM non-payment.
- ITC reversals under Rules 42 and 43.
ITC Review
- Eligible ITC claimed and missed.
- Blocked credits.
- Ineligible ITC claims.
- Refund claims.
Deal Structuring
- Pre-deal restructuring.
- Post-deal integration.
- Asset vs share purchase.
- GST implications of the transaction structure.
Conclusion
GST due diligence is not a compliance formality — it is a critical risk assessment for M&A transactions. A health check identifies liabilities before they become post-closing surprises.
At Anuj Desai & Associates, we provide GST health check and due diligence services for M&A and investment transactions. Our team reviews historical compliance, identifies contingent liabilities, and supports deal structuring.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.