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GST Departmental Audit · Section 65

Know your GST audit exposure before the officer does.

Upload your Tally exports and GSTR-2B. TaxCorp quantifies every ITC and RCM exposure — with interest, a per-supplier breakdown, and a readiness note grounded in the official CBIC Model GST Audit Manual. The number you walk in with is one you can defend.

Built on the official CBIC Model GST Audit Manual 2023  ·  Every figure carries its statutory basis

The questions a GST auditor will ask

A Section 65 audit comes down to a handful of recurring demands. TaxCorp answers each one against your own books — before the notice lands.

"Did you reverse ITC on invoices unpaid beyond 180 days?"
180-Day ITC Reversal
"Is the ITC you claimed actually reflected in your GSTR-2B?"
2B vs 3B Reconciliation
"Did you claim credit that's blocked under Section 17(5)?"
Blocked Credits
"Did you pay reverse charge on freight, legal, director & security?"
RCM Completeness
"Did you reverse common credit attributable to your exempt supplies?"
Rule 42/43 Reversal

Five audit-grade checks

Each check runs on your own data, flags the exact exposure with the statutory basis, and excludes the items the rule doesn't apply to — so the number is one you can defend before an officer.

180-Day ITC Reversal
Section 16(2) / Rule 37

Upload your purchase register or Tally bills-outstanding (ageing) export. We flag invoices unpaid beyond 180 days where ITC was availed — reversing only the proportionate unpaid portion, computing interest u/s 50, and excluding RCM & Schedule-I supplies.

Open 180-Day Check →
GSTR-2B vs 3B Reconciliation
Section 16(2)(aa)

Upload your portal GSTR-2B JSON and purchase register. We match invoice-by-invoice (absorbing invoice-number format differences), and quantify ITC claimed but not backed by 2B — the top departmental demand — plus what's available but unclaimed. Upload several months' 2B together and credit appearing in a neighbouring month (late supplier filing) is netted as a timing difference, not counted as a demand.

Open 2B vs 3B →
Blocked Credits
Section 17(5)

We scan expense heads, narration and HSN/SAC to flag ITC on blocked supplies — motor vehicles, food & beverage, club, CSR, works contract, construction, gifts — with the specific clause. Statutory exceptions are surfaced for your confirmation.

Open 17(5) Check →
RCM Completeness
Section 9(3) / 9(4)

We scan expenses for reverse-charge supplies — GTA freight, advocate fees, director's services, sponsorship, security, renting of vehicle, import of service — quantify the RCM you were liable to self-assess, net it against what you booked and declared in GSTR-3B, and flag the lines where nothing was paid.

Open RCM Check →
NEW
Common-Credit Reversal
Rule 42 / 43

Used inputs and capital goods commonly for taxable and exempt supplies? We run the statutory Rule 42 (inputs) and Rule 43 (capital goods) worksheets on your turnover split and common ITC — computing D1, the deemed 5% D2 and the per-period capital reversal Te — then net it against what you reversed in GSTR-3B, with interest.

Open 42/43 Check →
New to GST audits? Start here

Not sure where to begin? Ask the audit assistant.

Get plain-language answers to any Section 65 question — what the officer will ask, which records to keep, how to defend an ITC or RCM position — grounded in the CBIC Model GST Audit Manual, the ICAI Handbook on Finalisation of Accounts and relevant case law. Switch to "experienced" mode for a precise, section-cited answer.

Then work the interactive audit-readiness checklist — 40+ points across notice, records, reconciliations, ITC, RCM, valuation and documentation, each with its statutory basis — and export it as your prep plan.

Open Audit Q&A & Checklist
Q&A + readiness checklist
Manual + ICAI handbook + case law
Official government source

Grounded in the playbook departmental officers actually use

The CBIC Model All India GST Audit Manual 2023 is the verification framework officers follow during a Section 65 audit. TaxCorp reads it directly and verbatim — not a paraphrase — so your readiness note mirrors how each issue is examined on the ground.

For reverse charge, your note is built around Annexure 9 — "Levy of tax on Reverse Charge Mechanism", the manual's own RCM checklist (Section 9(4) supplies, departmental Q&A and the leading RCM case law), so you address every point before it's raised.

  • Verbatim statutory text and notification references — nothing invented.
  • Relevant case law surfaced by TaxCorp AI alongside the manual.
  • A ready-to-file readiness note (PDF) and an exceptions workbook (Excel).
CBIC Model GST Audit Manual 2023
9 chapters · 18 annexures · read in full

Built for the audit, not just a flag

Every check shares the same audit-grade plumbing — the difference between a spreadsheet guess and a defensible number.

Interest u/s 50

Interest computed per line with the Rule 88B utilisation guard — not just a headline reversal.

Per-supplier exposure

See which vendors drive your risk — aggregated by GSTIN, ranked by exposure.

False-positives excluded

RCM, imports, Schedule-I, forward charge, 17(5) exceptions and cross-month timing differences are carved out so the figure holds up.

Readiness note + Excel

A case-backed note grounded in the CBIC manual, plus a line-by-line exceptions workbook.

Three steps. No setup.

Just the exports you already have.

Upload

Tally purchase register / ageing report (Excel) or your portal GSTR-2B JSON. Columns are auto-mapped, with a one-click review panel.

Review the exposure

Exposure cards, a clause / supplier / invoice breakdown, and exception toggles tuned to your business context.

Draft & export

Generate the readiness note and download the workbook to take into the audit.

Made for the people in the room

CAs & tax practitioners

Scope a client's exposure in minutes and walk in with a defensible note.

In-house tax & finance

Self-assess before the department does and close gaps via DRC-03.

Got an ADT-01 notice

Turn the audit questionnaire into a quantified, point-by-point response.

CFOs & promoters

See the rupee exposure and interest at risk on one screen.

Questions, answered

What do I need to upload?
Your Tally purchase register or bills-outstanding (ageing) export as Excel, and/or your GSTR-2B JSON downloaded from the GST portal — you can upload several months' 2B at once so cross-month timing differences are netted out. For RCM and blocked-credits, an expense ledger works too. Columns are auto-detected, with a review panel if anything needs correcting.
Will it raise false demands on items the rule doesn't cover?
No — that's the point of "audit-grade". Each check explicitly carves out the supplies the rule doesn't apply to (RCM, imports, Schedule-I, forward-charged invoices, Section 17(5) exceptions), gives you toggles for your business context, and flags every match with a confidence level so you confirm before relying on it.
Is the legal basis citable in front of an officer?
Yes. Every figure carries its section / rule / notification, and the readiness note is grounded verbatim in the CBIC Model GST Audit Manual 2023 (including its Annexure 9 RCM checklist), with relevant case law surfaced by TaxCorp AI.
Does this replace my professional judgement?
No. The checks are indicative and meant to focus your review — confirm each flagged line, especially medium-confidence ones, before acting. TaxCorp gives you a quantified starting point and a defensible draft; the final call stays with you.

Walk into your GST audit prepared.

Quantify your exposure, ground your position in the official manual, and export a readiness note — all from the exports you already have.

TaxCorp GST Audit Prep is a preparatory tool. Outputs are computed from the data you provide and are indicative — review each flagged line before relying on it. This is not legal advice and does not substitute for professional judgement or a statutory audit.


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