New Functionary March 2021 GST Audit

AUDIT BY TAX AUTHORITIES [SECTION 65]

Power to conduct the audit:-

The Commissioner; or
Any officer authorised by him, by way of a general or a specific order
Where to conduct the audit:-

undertake audit of any registered person at the place of business of the registered person or
in their office
Time period prior to conduct the audit:-

Where it is decided to undertake the audit of a registered person, the proper officer shall issue a notice not less than 15 working days prior to the conduct of
Time limit for completion of audit:-

The audit is required to be completed within 3 months from the date of commencement of audit. The period is extendable for a further period of a maximum of 6 months by the Commissioner.
How to conduct audit:-

Verify the documents on the basis of which the books of account are maintained and the returns and statements furnished under the Act and the rules made thereunder.
The correctness of the
The correctness of exemptions and deductions
The correctness of the rate of tax applied in respect of supply of goods or services or both.
The correctness of the input tax credit availed and utilized.
The correctness of refund claimed.
During the course of audit, the authorised officer may require the registered person:-

1. to facilitate the verification of accounts/records available or requisitioned by the authorities,

2. to provide such information as the authorities may require for the conduct of the audit, and

3. to render assistance for timely completion of the

Conclusion of Audit:-

1. The proper officer shall finalize the findings of the audit after due consideration of the reply furnished by registered person to audit observation brought to his notice during the course of

2. On conclusion of audit, the proper officer shall within 30 days inform the registered person whose records are audited, about the findings, his rights and obligations and the reasons for such findings.

3. Where the audit results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under section 73 or section