Bank Audit Special : GST Points during Bank Audit

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Bank Audit Special : GST Points during Bank Audit

Following are the points related to GST need to check while performing bank audit:-
1. Display of Registration Certificate and GSTIN on the Name Board of branch at entrance of Branch. (Rule 18 of CGST Rules, 2017).
2. Blocked credit should not be availed i.e. credit on Insurance, Motors vehicle and conveyance, Food beverages etc. (Section 17(5) of CGST Act)
3. Tax invoice raised by branch should be serially number.
4. If any revenue booked through MOC at year end then GST should charges with interest @ 18% also.
5. Interest income including additional interest of bank branch is exempt from GST but penal interest, bank charges, commission etc are labile for GST.
6- Input taken by HO/ Zonal office should distribute to branch via ISD registration.
7.  GST should charge on scrap sale or sale of fixed asset.
8- Section 35 of CGST Maintenance of GST record. Need to check whether proper GST record maintain by bank branch or not.
9. Need to check  Profit and loss income for non charging of GST point of view.
10. Check GST RCM liability on
      – Security Services
      – GTA
      – Advocate / Legal fee
      – Sponsorship fee
       – Import of Services etc
11. Check input availed by bank branch are eligible to take with Tax invoices and if any input not taken same should report in LFAR at-least.
12. Banks are eligible to take 50% of Input credit, check whether such input are correctly taken.

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