It is now the 6th month since GST is rolled out. Many of the auditing firms are extremely busy in helping the clients to file their GST returns. Many of the audit firms are not in a position to concentrate on their main activity of auditing.

Many Auditors and accountants in India are used to a simple accounting software, which is either handled solely by the Accounts team or the Auditors use to enter the data on behalf of the clients. Since the present practice allows the auditors to take 6 months after the completion of the years transactions things were all okay.

After the GST is roll-out, they way auditing is done is completely changed. Lets look at the Sales & Purchase data has to be handled with various combinations like:

Type of vendor registration

  • Regular
  • Un Registered
  • Composite
  • e-commerce operators
  • Consumer

Purchase & Sales Transactions

  • Item wise Rate of Tax
  • Supplier and Customer location (state) identification.
  • Service Items rate of tax
  • Enquiry, Purchase order, Sales order to auto calculate tax based on location of supply.
  • Rate tax for the service items in a transaction to take the highest of the physical item.
  • Exports/EOU/SEZ – Duty with Pay/ without Pay.
  • Reverse charge with Un-registered vendors purchase.
  • Job order (to track the materials sent & received)

Purchase and Sales returns 

  • Purchase returns – GRN linked Invoice and Debt note
  • Sales Returns – Invoice Linked – Credit note

GST on Advance

  • GST off-set if the bill is raised with in the same month
  • Full bill adjusted and partial advance adjusted
  • Advance payment to be calculated on the highest rate of tax

There are about 11 types of reports to be generated for the GSTR filing. There are various rules for generating these reports.

Crux of the issue

The crux of the issue, unlike in the Pre GST regime, where the transactions are taken place and recording of the transactions happens later. This was possible since the accounting was done for the transactions irrespective of number of items in the transaction.

But after the GST, the regulation expects that each item (item and services) of the transaction has to be tracked and  the combination of rules are to be applied at the time of transaction with zero scope for interpretation. The GST returns are to be filed for every month for all transactions, since it is on-line for both customers and vendors, the accuracy and the timely compliance of the data is extremely important.

The only solution is a proper ERP system, where all the rules are well defined and the users are not allowed to deviate from the GST frame work while creating the transaction. Also the auditors has work in the same software as an extended user, only then the compliance can be met easily. 

If this is not done it will end-up in huge amount of mess and non-compliance. It is not worth to struggle with an accounting software anymore. Hence it is on the best interest of the enterprise and for ease of audit a good ERP system is non-negotiable.

Solution from Syscon:

1. We are offering an on-line and low cost ERP solution with all features well incorporated.

2. The solution is available on both cloud and on-premise models. Also available on Digital MSME Scheme. (

3. Auditors can get free license of the ERP software. (limited period offer)

4. Auditors can access multiple clients data, with single software instance, but with different login credentials.

5. 100% on-line installation, implementation and support.

6. Masters and opening balance can be migrated from the Accounting software to standard XL sheets to Syscon’s ERP system.

7. Clients can go-live in our ERP system with in 2-3 weeks of time.


Author Vijay

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Join the discussion One Comment

  • excellent view point. auditors role become highly sensitive, assume professional role in true sense not mere certifying agent. ownership transferred to Proprietor or partner .auditor assumes the role professional scanner of entire transactions and suggest innovative alter route.

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