Audit under Goods and Services Act

Types of Audit

• Audit by Tax Authorities
• Special Audit

Audit by Tax Authorities

• Under What circumstances: Not Specific, means order can be given under any circumstances.
• Who can order: Commissioner or any officer authorised by him.
• What kind of order: General or Special  in GST ADT-01.
• Period of audit: Such period as prescribed in order. It shall be a financial year or multiple thereof.
• Frequency of audit: as given in order.
• Manner of audit: as prescribed. (Rules)
• Place of Audit: Registered office of the taxable person or office of the proper officer.
• Notice period: not less than 15 days .
• Time Limit of Completed Audit: three months from the date of commencement.
• Extension of Time Limit of completed Audit: extend to further period of 6 months
• Who can extend: Commissioner
• How can extend: The Commissioner should record the reason in writing.
• What is the date of commencement of Audit: Date when the documents or other information is made available or Actual institution of Audit at the place of business whichever is later.

Information for Audit: A.O. may require the registered person

1. Afford the facility for the audit
2. To furnish such information and render assistance for timely completion of audit.

• Time Limit of giving findings: within 30 days of completing the audit.
• What will be included in findings: Findings, Right, obligation and the reason of the findings. (GST ADT-02).
• Results of Audit: In case of tax not paid, short paid , erroneously refund or wrong tax credit availed or utilised, action under section 73 or section 74.

​​​​​​​Special Audit:

• Who can direct for special audit: Officer not below the rank of assistant commissioner with prior approval of commissioner to the registered person to  get his account audited . (GST ADT-03).
• When such direction shall be made: At the stage any  scrutiny, inspection, inquiry or any  proceedings before him, having regard to the nature and complexity of the case and the interest of revenue.
• Value has not been correctly declared.
• Credit availed is not within the normal limit.
• Who will conduct the special audit: Chartered Accountant, Cost Accountant or person nominated by the commissioner.
• Time Limit of Completion of special Audit and submit the report: within 90 days
• Extension of special audit: further period of 90 days.
• Who can apply for extension: Registered person or Auditor
• Opportunity of being heard: The registered person shall be given the opportunity of being heard before the final audit report being submitted.
• Who will pay the cost of special audit: Expenses including remuneration shall be determined and paid by commissioner and such determination shall be final.
• Results of Special Audit: In case of tax not paid, short paid , erroneously refund or wrong tax credit availed or utilised, action under section 73 or section 74. (GST ADT-04).