VAT Annual Audit Services — state VAT, finished and defended.
VAT annual audit for businesses dealing in petroleum, alcoholic liquor, and other VAT-applicable goods — Maharashtra Form 704, state VAT returns, legacy assessment support, refund claims, and representation before state VAT departments.
VAT did not disappear with GST. For petroleum products, alcoholic liquor for human consumption, and certain other goods kept outside the GST framework, state VAT continues to apply — administered by each state under its own VAT Act and Rules. Petrol pumps, gas stations, oil marketing companies, distilleries, and liquor businesses across India still file VAT returns, claim input credit within state boundaries, and undergo VAT audit where they cross the prescribed turnover threshold.
Beyond current applicability, legacy VAT obligations from the pre-GST regime continue to keep finance teams busy. State VAT departments are still issuing assessment orders, demand notices, refund decisions, and appellate orders for periods up to 30 June 2017. The transition forms, C-form reconciliations, branch transfer disputes, and input tax credit denials of that period still come up for hearing, and businesses need representation that understands both the law of that era and the documentation it produced.
Our VAT team handles both current and legacy work. Current VAT audit for petroleum and liquor businesses — including Maharashtra Form 704 audit and the equivalents in other states. Legacy VAT representation across assessment, audit, appeal, and refund proceedings. And reconciliation between VAT and GST for businesses that operate across both regimes. The objective is to close VAT obligations cleanly — and recover what is rightfully due back to the business.
VAT Audit Services We Offer
VAT Annual Audit
Audit of sales, purchases, ITC, tax payments, and statutory forms under the applicable State VAT Act — Form 704 for Maharashtra and equivalents in other states.
Petroleum Sector VAT Audit
VAT audit for petrol pumps, gas stations, fuel distributors, and oil marketing companies — sales reconciliation, ITC, and statutory filings.
Liquor & Alcohol VAT Audit
VAT audit for distilleries, breweries, IMFL distributors, country liquor businesses, and liquor retail — across applicable state Acts.
Legacy VAT Assessment Support
Representation and documentation support during legacy VAT assessment proceedings — pre-GST period scrutiny and demand orders.
VAT Refund & Reconciliation
Refund claims for legacy periods, excess ITC recovery, export-related refunds, and reconciliation with VAT department records.
VAT Department Audit Support
End-to-end support during department audits — records compilation, written submissions, representation, and post-audit closure.
VAT Returns & Filings
Periodic VAT return preparation and filing for businesses with continuing VAT registrations under applicable state laws.
VAT to GST Transition Audit
Review of CENVAT and VAT credits carried forward into GST, TRAN-1 and TRAN-2 positions, and pending transition disputes.
Our VAT Audit Process
Applicability & Turnover Check
Confirming VAT applicability, turnover threshold for audit, registrations in scope, and applicable state VAT Act provisions.
Books & Returns Reconciliation
Reconciliation between VAT returns, financial statements, and books — outward supplies, inward supplies, ITC, and tax payments.
Input Credit Verification
Testing input tax credit eligibility, capital goods credit, set-off provisions, and statutory forms (C, F, declarations).
Audit Report Preparation
Form 704 (Maharashtra) or equivalent state audit report drafted, internal review, and certification by the engagement partner.
Submission & Liaison
Electronic filing of the audit report, submission of supporting documents, and ongoing liaison with the VAT department where required.
Why VAT Audit Matters
Frequently Asked Questions
Yes, VAT continues to apply to specified goods that are outside the GST framework — primarily petroleum products (petrol, diesel, crude oil, natural gas, aviation turbine fuel) and alcoholic liquor for human consumption. Each state administers VAT on these products through its own State VAT Act and Rules. Businesses dealing in these products are required to register, file returns, and undergo VAT audit where applicable.
Although GST replaced VAT on most goods and services from 1 July 2017, legacy VAT periods continue to generate audit, assessment, appeal, and refund work. State VAT departments are still completing assessments for pre-GST periods, issuing demand notices, and processing pending refund claims. Businesses with significant pre-GST operations often face VAT proceedings even years after GST was introduced — requiring representation, documentation, and reconciliation support.
Form 704 is the prescribed VAT audit report under the Maharashtra Value Added Tax Act, 2002 and Rules. Dealers crossing the prescribed turnover threshold in a financial year are required to get their accounts audited by a Chartered Accountant in practice and file Form 704 within the prescribed due date. The audit covers verification of sales, purchases, input tax credit, tax payment, set-off claims, and compliance with the MVAT Act and Rules. Form 704 remains relevant for legacy MVAT periods and for current VAT applicability on excluded goods.
The VAT auditor verifies sales and purchase registers, tax invoices, statutory forms (C forms, F forms, declaration forms where applicable), reconciliation of returns filed with books of accounts, input tax credit availed and reversed, branch transfers, capital goods credit, refund claims, and adherence to provisions of the relevant State VAT Act. Reconciliation between VAT returns, financial statements, and tax payments is a core part of the audit.
Currently, VAT audit applicability arises in two situations. First, for businesses dealing in petroleum products, alcoholic liquor, or other VAT-applicable goods that cross the prescribed turnover threshold in the relevant State VAT Act — common examples include petrol pumps, gas stations, distilleries, liquor distributors, and oil companies. Second, for businesses with legacy VAT periods still under assessment, audit, or appeal proceedings before state VAT departments.
VAT is a state-level tax with separate Acts in each state — applicable today only to specified goods (mainly petroleum and alcohol) that are excluded from GST. GST is a unified central + state tax framework covering most goods and services since 1 July 2017. VAT audit is governed by the relevant State VAT Act and Rules (such as MVAT Act for Maharashtra), while GST audit operates under the CGST Act and SGST Acts. Many businesses with mixed product portfolios still need both VAT compliance for excluded products and full GST compliance for everything else.
Yes. Refund claims for legacy VAT periods continue to be processed by state VAT departments, particularly for excess input tax credit, export-related refunds, and refunds arising from assessment orders. The process typically involves filing refund applications, providing reconciliation statements, responding to department queries, and following up through the assessment officer. Our team supports clients through legacy VAT refund claims with documentation and representation.
A Chartered Accountant represents the taxpayer in VAT departmental audit, assessment, and appellate proceedings — preparing written submissions, organising documents, attending hearings, addressing departmental queries, and assisting in appeal filings before the Joint Commissioner, Deputy Commissioner (Appeals), and VAT Tribunal as applicable. Effective representation often determines whether a demand stands or is significantly reduced through legal and factual arguments.
Close Your VAT Obligations Cleanly
Talk to our team about your VAT annual audit, legacy VAT assessment support, refund claims, or representation before the state VAT department — handled end-to-end.
Talk to a VAT Auditor or call +91 9819 000 511