Section 65 of the GST empowers the GST authorities to conduct an audit of the tax payers. The audit under GST shall be conducted at such frequency and in such manner as provided under GST law.

The audit shall be conducted at the place of business of the registered person or in their office. Prior to conducting the audit, the taxpayer shall be informed by way of notice not less than fifteen working days prior to the conduct of the audit.

The notice shall be issued in Form GST-ADT 01. The officer authorized to conduct the audit of the records and books of account of the registered person shall verify:

  1. The documents on the basis of which the books of account are maintained and the returns and statements furnished
  2. The correctness of the turnover
  3. Exemptions and deductions claimed
  4. The rate of tax applied in respect of the supply of goods or services or both
  5. The input tax credit availed and utilized
  6. Refund claimed
  7. Other relevant issues and record the observation in his audit notes.

The officer may inform the registered person of the discrepancies noticed, if any, as observations of the audit and the said person may file his reply and the officer shall finalize the findings of the audit after due consideration of the reply furnished.

The audit shall be completed within a period of three months from the date of commencement of the audit. On conclusion of the audit, the proper officer shall inform the findings of the audit to the registered person in FORM GST ADT-02.

The date of commencement of audit shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later.

Special Audit under GST Act

Where the GST authorities are of the opinion that the taxpayer has not correctly declared the value of the goods or the credit availed is not within normal limits, the GST authorities are empowered to direct the taxpayer to get his books audited by a chartered accountant or a cost accountant as may be nominated by the GST authorities. Such an order shall be issued to the taxpayer in GST ADT-03.

The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the GST authorities. On conclusion of the special audit, the taxpayer shall be informed of the findings of special audit in FORM GST ADT-04.

To know more about the audit under GST law, talk to our experts at Integra Books today.


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