GST Health Check | Savlana Init

GST Compliance · Health Check

GST Health Check — Reviewed Before the Department Does.

A CA-led GST health check reviews your returns, ITC records, invoicing, and compliance documentation — identifying errors to correct, ITC to recover, risks to mitigate, and gaps to close before a department notice or audit finds them first.

A GST health check is a proactive, structured review of a business's GST compliance — covering the accuracy of returns filed, ITC claimed and reversed, invoicing compliance, registration details, and supporting documentation — conducted by a Chartered Accountant before the department conducts an audit or issues a notice. The health check identifies errors made in prior periods, ITC that was missed or over-claimed, misclassified supplies, incorrect rates, unpaid RCM, and documentation gaps — allowing the business to correct them voluntarily before they are found by the department.

The GST compliance landscape has several common failure points that most businesses accumulate over time — GSTR-1 and GSTR-3B turnover differences that were never explained; ITC claimed beyond GSTR-2B in certain months; blocked ITC under Section 17(5) that was not reversed; RCM on GTA or advocate services that was missed; invoices without mandatory fields; e-way bills not generated for specific movements; and HSN summary errors in GSTR-1. Each of these is a potential source of a scrutiny notice, demand, or adverse audit finding. A health check identifies all of them and provides a roadmap for correction — before the department's automated systems do the same job and issue a notice.

We conduct GST health checks for businesses of all sizes — from small traders who want assurance that their return filing is correct, to large manufacturers who want a pre-audit health check before the department's audit team arrives. The health check report is a practical, actionable document — identifying each issue, the applicable legal provision, the financial impact, and the recommended corrective action — with a compliance roadmap that the business can execute in a planned and controlled way.

Our GST Health Check Services

GSTR-1 vs. GSTR-3B Turnover Reconciliation

Reconciliation of turnover reported in GSTR-1 against GSTR-3B for each month — identifying unexplained differences and assessing scrutiny risk.

ITC vs. GSTR-2B Reconciliation

Reconciliation of ITC claimed in GSTR-3B against GSTR-2B — identifying ITC claimed in excess of GSTR-2B, blocked ITC not reversed, and eligible ITC not claimed.

Section 17(5) Blocked ITC Review

Review of ITC claimed on purchases that are blocked under Section 17(5) — motor vehicles, food, outdoor catering, club memberships, works contracts — and computation of unreversed blocked ITC.

RCM Compliance Review

Identification of RCM-liable transactions — GTA, legal services, security, director remuneration, import of services — and verification that RCM has been paid and ITC claimed correctly.

Invoice Compliance Review

Review of tax invoice, bill of supply, credit note, and delivery challan formats — confirming all mandatory fields, correct HSN codes, and e-invoicing applicability.

E-Way Bill vs. GSTR-1 Reconciliation

Reconciliation of e-way bill value against GSTR-1 turnover — identifying unexplained gaps that are common targets for ASMT-10 scrutiny notices.

Annual Return Readiness Check

Review of the data quality and reconciliation status of returns and books — assessing readiness for GSTR-9 annual return and GSTR-9C reconciliation statement.

Health Check Report & Compliance Roadmap

Preparation of a written GST health check report — identifying every issue found, the applicable legal provision, the financial exposure, and the recommended corrective action with priority ranking.

Our Process

Data Collection

Returns (GSTR-1, GSTR-3B, GSTR-2B), books of accounts, ITC register, invoice samples, e-way bill data, and RCM records are collected for the review period.

Systematic Review

Each compliance area is reviewed systematically — turnover, ITC, invoicing, RCM, e-way bills, annual return readiness — using the applicable legal provisions as the benchmark.

Issue Identification & Impact Quantification

Every issue identified is documented — with the applicable provision, the financial impact (tax, interest, penalty exposure), and the recommended corrective action.

Health Check Report Preparation

A comprehensive written report is prepared — executive summary of key risks, detailed finding-by-finding analysis, and a priority-ranked compliance roadmap.

Corrective Action Support

For each finding where correction is required — voluntary payment, ITC reversal, return amendment, invoice rectification — we support the implementation of the corrective action.

Why It Matters

✓GSTR-1 vs GSTR-3B differences identified and explained before scrutiny

✓ITC excess claims and blocked ITC identified — corrective DRC-03 advised

✓RCM defaults identified — payment and ITC corrections made voluntarily

✓Invoice format gaps corrected — buyer ITC protection ensured

✓E-way bill vs GSTR-1 discrepancies reconciled — scrutiny risk mitigated

✓Annual return readiness assessed — no last-minute reconciliation scramble

✓Written health check report with priority-ranked corrective actions

✓Financial exposure quantified — voluntary payment planned to avoid penalty

Frequently Asked Questions

A comprehensive GST health check covers: GSTR-1 vs. GSTR-3B turnover reconciliation; ITC vs. GSTR-2B reconciliation; Section 17(5) blocked ITC review; RCM compliance check; invoice format and mandatory field review; e-way bill vs. GSTR-1 reconciliation; annual return readiness assessment; and a written report with issue-by-issue findings and a priority-ranked corrective action plan.

An annual health check — timed before the GSTR-9 annual return preparation in the September-November window — is the minimum recommended frequency. Businesses with high transaction volumes or complex supply chains benefit from semi-annual health checks. A health check should also be conducted when a GST department audit is anticipated, when the business changes its product/service mix, or when a new compliance notification is issued that affects the business's GST position.

For each error identified, we recommend the appropriate corrective action — voluntary payment through DRC-03 (for underpaid tax), ITC reversal in GSTR-3B (for over-claimed ITC), GSTR-1 amendment (for incorrect invoice data), or invoice rectification (for format issues). Voluntary correction before a notice is issued eliminates penalty under Section 73(5) and reduces the interest period — making early self-correction far more cost-effective than waiting for a notice.

No. A GST health check is a voluntary, proactive review conducted by a CA engaged by the taxpayer — focused on identifying and correcting errors before the department finds them. A GST audit under Section 65 or Section 66 is a mandatory examination conducted by or at the direction of the GST department, which may lead to demand proceedings. A health check can be thought of as pre-audit preparation — finding what a departmental audit would find, so corrections can be made voluntarily.

The documents needed are: all filed GSTR-1 and GSTR-3B returns for the period; GSTR-2B for each month; books of accounts (purchase and sales registers, ITC register); sample invoices (tax invoices, bills of supply, credit notes, delivery challans); e-way bill generation data; tax payment challans; and RCM payment records. The health check can be conducted remotely if the documents are shared digitally.

For a single GSTIN with moderate transaction volume and 12 months of data, a health check typically takes 5 to 10 working days from document receipt to report delivery. The timeline depends on the data quality, the complexity of the supply mix, and the number of issues identified. We provide a preliminary finding summary within the first 3 days so critical issues can be addressed immediately while the full review continues.

Want to know your GST risk before the department does?

We conduct a comprehensive GST health check — reviewing your returns, ITC, invoicing, RCM, and e-way bills — and deliver a written report with every risk identified, financially quantified, and assigned a corrective action plan.