Check Points for Certificate under Section 18(1)(b) of the CGST Act by CA

Check points for the Chartered Accountant

A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration

(i) Verify registration particulars with the Registration Certificate.

(ii) Do not take responsibility for filing the respective statutory form prescribed as the same is the responsibility of Management. Auditor’s responsibility is to issue the above certificate and attest the information in in Appendix A of the certificate.

(iii) Check the books and records and other relevant documents and registers relating to quantity and value of inputs lying in stock and inputs contained in semi-finished or finished goods on the date preceding the date of grant of registration for verifying quantity of goods held / lying in stock. Eligibility of such credits also needs to be checked under Section 16 and Section 17 of the CGST / SGST Acts, 2017.

(iv) Check the basis of ‘derived’ data of equivalent units of inputs contained in semi-finished and finished goods in stock.

(v) Check computation of input tax credit from tax invoices / bills of entry or other relevant documents.

vi) Statement of bills of entry / tax invoices attributed by Management to be the goods lying in stock and less than 1 year on the day on which registration is granted to the Applicant (Section 18(2) of the CGST / SGST Acts, 2017) may be collected from Management and subjected to audit verification tests. The tax invoice must be the one containing the prescribed particulars (Section 16(2) of the CGST / SGST Acts, 2017 to be read with Rule 46 of the CGST / SGST Rules, 2017).

(vii) The books of account and relevant documents / records of the Appellant should be thoroughly verified to understand if it is actually entitled to benefit of credit under Section 18(1)(b) of the CGST / SGST Act, 2017 and was not liable to obtain registration under Section 22 or Section 24 of the CGST / SGST Act, 2017

(viii) Ensure that the debit notes / credit notes, if any, are recorded / accounted against the vendor invoice which are forming part of the closing inventory.

(ix) This certificate is required to be issued only if the aggregate value of the claim on account of SGST / CGST / UTGST and IGST exceeds rupees two lakhs (Rule 40 (1)(d) of the CGST / SGST Rules, 2017)

(x) This certificate is to be suitably modified wherever applicable. The names of the registered persons, dates, addresses etc. are only illustrative and needs to be modified in each case. Any resemblance to any person / place is purely unintentional

(xi) This certificate is to be issued in respect of a person who seeks voluntary registration u/s 25(3) of the CGST / SGST Acts, 2017.

(xii) Ensure that the certificate issued is in accordance with the Guidance note on Reports and Certificates for special purpose issued by the ICAI.

(xiii) Ensure that a letter of representation is taken from the management for the details and information provided by them.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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