Comprehensive GST Transaction Reconciliation and Red Flag Identification
Problem
A registered taxpayer has executed a significant number of business transactions during the financial year involving outward supply invoices, inward supply purchases, ITC claims, cash ledger utilisation, credit ledger adjustments, inter-branch stock transfers, reverse charge mechanism payments, and multiple GST return filings. The management suspects irregularities in tax credit utilisation and possible misreporting in GST returns, requiring a systematic GST audit to verify compliance.
Prompt Input
Assume you are a GST Auditor. You are provided with the taxpayer’s GSTR-1, GSTR-3B, GSTR-2B, Electronic Credit Ledger, Electronic Cash Ledger, sales register, purchase register, e-way bills, and expense ledgers. By analysing the provided data, you are required to: Reconcile GST Returns GSTR-1 vs GSTR-3B (Output tax liability) GSTR-2B vs GSTR-3B (Input Tax Credit availed vs eligible credit) ITC Reversal under Rules 42 & 43 Group Data in Tables under heads such as: Tax collected but not deposited ITC claimed but not appearing in GSTR-2B Credit not utilised or wrongly utilised Transactions with same vendor/customer Related party/branch transfer transactions RCM obligations and compliance E-way bill mismatches Identify Red Flags such as: Excess ITC claimed or ineligible credits under Section 16(2) Tax collected but liability not reflected in GSTR-3B Supplies without e-way bills or mismatched invoice values Suspicious high-value transactions clustered on specific dates Repeated transactions with dormant or deregistered suppliers Artificial splitting of invoices to avoid e-invoicing limits You must organise the above findings in Excel sheet format and provide summary tables containing: GST Credit Utilisation ITC Mismatch Summary Output Tax Variance Report RCM Exposure Analysis High-Risk Vendors/Customers Requiring Investigation
Prompt Output
Grouped tabular analysis in Excel covering GST return variances, ITC mismatches, and tax liability reconciliation Separate table of suspicious and red-flag transactions requiring forensic examination, such as: ITC availed without underlying tax invoice Supply transactions without e-way bill Invoices raised to related parties at abnormal pricing Unusual cash ledger top-ups and reversals Tracking sheet of due dates vs actual filing dates to highlight delays and late-fee exposure Compliance Risk Indicators (Low / Medium / High) for each category Summary report recommending corrective actions, including ITC reversals, interest payment, and vendor verification