A GST Health Check is a structured, diagnostic review of a taxpayer's end-to-end GST position — designed to proactively identify errors, leakages, exposures, and grey-area risks before they are surfaced by the tax department through a Section 61 scrutiny notice, Section 65 departmental audit, DRC-01A / 01B / 01C intimation, or a full-scale Section 73 / 74 proceeding. Unlike statutory GSTR-9C reconciliation, which is limited in scope and annual in cadence, a Health Check is an independent, advisory-led exercise spanning multiple financial years that goes deeper into classification, rate, ITC, RCM, cross-charge, export, refund, e-invoice, e-way bill, and documentation hygiene — covering every GSTIN of the group across states, entities, and business lines.
A well-designed GST Health Check tests substance and documentation on the provisions that matter most in real-world assessments — Section 16 and Rule 36(4) for ITC eligibility, Section 17(5) for blocked credits, Rule 42 / 43 for exempt / common credit reversals, Section 9(3) / 9(4) for RCM, Section 15 and Rules 27–35 for valuation, Sections 10 / 12 / 13 for place and time of supply, Section 34 and the November 30 cut-off for credit notes, Section 29(5) and Rule 44 for stock-on-cancellation, Rule 48(4) for e-invoicing, Section 16 IGST with Rule 96 / 96A for exports and refunds, and Rule 21A / Rule 138E for suspension and E-Way Bill blocking. Every theme is tested not as a tick-box but as a genuine audit-grade enquiry — sample-based, evidence-driven, and risk-rated.
Our GST Health Check Services deliver a comprehensive, issue-wise report covering every material GST position of the group — each issue graded as High / Medium / Low risk, with recommended corrective actions (file amendments, reverse ITC via DRC-03, strengthen documentation, re-classify, issue credit notes, amend contracts, redesign ERP logic, or take an Advance Ruling) — so that the client can close gaps, recover leakage, and walk into any future departmental audit, scrutiny, or M&A due diligence with clean, defensible, well-documented GST records.
Classification, rate, valuation, place / time of supply, exemptions, and revenue reconciliation.
Deep review of ITC eligibility, Section 17(5) blocked credits, and Rule 42 / 43 reversals.
Review of reverse charge, cross-charge between distinct persons, and ISD credit distribution.
Review of LUT, Rule 96A timelines, IGST refunds, and ITC refund under Rule 89.
Testing of invoice series, Rule 46 particulars, e-invoice coverage, and credit / debit notes.
E-Way Bill coverage, Rule 138E blocking risk, MOV exposure, and suspension risk under Rule 21A.
Incorrect HSN / SAC leading to short payment of output tax or denial of concessional rate.
ITC claimed without matching GSTR-2B, Section 16(2)(aa) / (ba) non-compliance.
Ineligible ITC on motor vehicles, food, construction, and other blocked categories.
Missed RCM on GTA, advocates, security services, and notified URD procurements.
Missed cross-charge between branches of the same PAN across states — Schedule I supplies.
Credit notes not reported by Sec 34(2) cut-off, resulting in permanent loss of GST adjustment.
Exports not completed in 3 months or realisation beyond 1 year — IGST + interest exposure.
Invoices without IRN where applicable — buyer-side ITC risk and Section 122 penalty.
Engagement scoping, period selection, GSTIN / entity mapping, and data room setup.
Execution of the check-point matrix across outward, ITC, RCM, exports, and documentation.
Risk-rated report with recommended actions, quantum, and remediation roadmap.
Complete 50+ check-point review across every pillar — outward, ITC, RCM, exports, and documentation.
Focused review of ITC eligibility, 2B reconciliation, 17(5) blocked credits, and 42 / 43 reversals.
Rehearsal of a Section 65 audit before ADT-01 — data room, sampling, and narrative defence.
Buy-side or sell-side GST due diligence in slump sale, demerger, and share / asset transactions.
Coordinated review across GSTINs, branches, and entities of a group with consolidated MIS.
Targeted review for real estate, hospitality, BFSI, healthcare, e-commerce, and works contract.
Focused review of export / SEZ / inverted-duty refund pipeline, LUT coverage, and leakage recovery.
Assisted remediation with DRC-03 voluntary payments, credit notes, and process redesign.
Advance intelligence or sector trend suggests an ADT-01 audit in the near term.
Planned transaction — buy-side, sell-side, PE / VC round, or IPO — needs a clean GST position.
Earlier ASMT-10, DRC-01B / 01C, or DRC-01 exposure calling for a pre-emptive clean-up.
Group with several GSTINs across states needing consistent positions and no hidden surprises.
New finance leadership wanting an independent, written view on the GST position inherited.
Large export / SEZ / inverted-duty refunds pending — leakage-free claim strategy required.
Recently crossed threshold — data hygiene from the pre-IRN period needs to be reconciled.
Board or audit committee wants an independent GST risk opinion for governance purposes.
Scoping workshop to define GSTINs, periods, entities, and review depth.
Data room setup, process walkthroughs, and master data review.
Issue-wise testing across 50+ check points with sampling and evidence documentation.
Risk-rated report with quantum, root cause, and recommended remediation.
Assisted remediation — DRC-03, amendments, credit notes, process redesign, ERP change.
Partner with our specialists for an end-to-end GST Health Check — 50+ check points, multi-year scope, risk-rated findings, and remediation support — delivered under one roof.
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