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GST audit and scrutiny

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CA NAMRATA KAYARWAR

316 Points Posted on 27 November 2024

taxpayer has been communicated regarding departmental audit for 5 yrs i.e. from 18-19 to 22-23.

Departmental audit for 18-19 and 19-20 already conducted.
ASMT-10 already issue and dropped for 20-21.

1. Can the department conduct an audit if the scrutiny for 20-21 has already been completed?

2. If the SCN u/s 73 for 20-21 lapses on 30/11/24, can the department raise a demand during the audit?

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 27 November 2024

If the scrutiny for 20-21 has already been completed, the department can still conduct an audit.

However, the scope of the audit might be limited to areas that were not covered during the scrutiny process.

Regarding your second question, if the SCN under Section 73 for 20-21 lapses on 30/11/24, the department cannot raise a demand during the audit.

Once the SCN lapses, the department cannot take any further action for demand or recovery.

However, the department can still conduct an audit to verify the correctness of the returns filed and ensure that the taxpayer has complied with all the provisions of the GST Act.