When we onboard a new client, we conduct a GST health check to identify risks. The health check covers historical compliance, ITC claims, RCM, exports, and documentation. We look for specific red flags that indicate compliance risk.
This article explains the red flags.
Red Flag 1: ITC Claims Exceeding GSTR-2B
If ITC claimed exceeds GSTR-2B consistently, the client is at risk of ITC reversal and penalty.
Red Flag 2: GSTR-1 and GSTR-3B Mismatch
If outward supplies in GSTR-1 do not match GSTR-3B, the client is at risk of a scrutiny notice.
Red Flag 3: RCM Non-Compliance
If RCM liability has not been paid on legal fees, trustee fees, or imported services, the client is at risk of a demand.
Red Flag 4: Export Documentation Gaps
If FIRC/FIRMS are missing or LUT is expired, the client's export refund is at risk.
Red Flag 5: Pending Notices
If notices have not been responded to, the client is at risk of ex-parte orders.
Red Flag 6: No Reconciliation
If there is no evidence of monthly reconciliation, the client is at risk of undetected mismatches.
Conclusion
A GST health check identifies risks before they become demands. Our health check covers ITC, RCM, exports, notices, and documentation.
At Anuj Desai & Associates, we conduct GST health checks for new clients to identify compliance risks. Our team provides a detailed report and remediation plan.
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.