Steps to Conduct GST Review / Health Check

1. Step 1 : Gather Necessary Documents
Collect all GST returns (GSTR-1, GSTR-3B, GSTR-9, GSTR-2A/2B, etc.), books of accounts, purchase and sales invoices, payment receipts, and other relevant documents..
2. Step 2 : Reconcile Sales and Purchases
Compare sales invoices reported in GSTR-1 with GSTR-3B and books of accounts.
Ensure all purchases and input tax credits (ITC) in GSTR-2A/2B align with purchase invoices and are correctly reflected in GSTR-3B.
3. Step 3 : Review ITC Claims
Cross-check the ITC claims in GSTR-3B with GSTR-2A/2B.
Validate that all eligible ITC is claimed, and ineligible credits are not claimed.
4. Step 4 : Identify and Resolve Discrepancies
Investigate any discrepancies between GSTR-1, GSTR-3B, and the books of accounts (e.g., missing sales, incorrect tax rates).
Correct any errors and file revised returns if necessary.
5. Step 5 : Ensure Timeliness of Filings and Payments
Verify that all returns have been filed on time, and GST payments are made before the due date to avoid interest and penalties.
6. Step 6 : Documentation and Record Keeping
Ensure proper documentation and filing of all relevant GST-related records. Maintain these for at least 6 years, as required by law.