Utilizing ITC for the fulfillment of Tax liability:
IGST: After the IGST input tax credit is used for payment of IGST then the remaining ITC can be used to pay tax liability under CGST and SGST.
CGST: The CGST input tax credit cannot be used to pay the SGST liability but can be used to pay the liability under CGST.
SGST: The SGST input tax credit cannot be used to pay the CGST liability but can be used to pay the liability under CGST.
Check points by the Auditor:
* Whether all the payments were made within due date
* In case of delayed payment whether the interest has be paid
* Is there any payment made under wrong account head
* Refund claim filed if any for payment under wrong account head
* Reversal of Input tax credit shown in the Electronic Credit Ledger
* Reconciliation of cash ledger, credit ledger and liability ledger with their books of accounts.
* Whether all the reconciliation entries should be passed before the year end.
* Effect of debit note, credit note, rate difference, discount, etc also to be reconciled.