Which of the following are indicators that might trigger an inspection for GST compliance?

• A. Large variances
• B. Unusual refunds
• C. Mismatches between purchases and credits
• D. All of the above

Answer: (D)

GST inspectors look for red flags that something in the filing or records isn’t lining up. Large variances in GST amounts reported can point to errors, omissions, or even fraudulent activity, signaling that a closer review is warranted. Unusual refunds raise concern because they can indicate improper GST treatment on refunds, potential fraud, or misprocessing. Mismatches between purchases and claimed credits show gaps in documentation or incorrect input tax credits, undermining the integrity of the GST reconciliation.

Each of these scenarios is a credible warning sign on its own, and together they cover key risk areas: calculation accuracy, refund integrity, and claim validation. So, all of these are indicators that might trigger an inspection for GST compliance.