Union government has accepted the recommendation to set up an online audit mechanism under the Goods and Services Tax (GST) to streamline the process. The current audit process was seen as cumbersome and time-consuming, with a large number of documents being sought from taxpayers for conducting audits. Additionally, taxpayers were being called to physical GST offices, causing inconvenience to both assessees and officials.
To address these concerns, the government has decided to implement an online audit system. The Central Board of Indirect Taxes and Customs has already published the GST Audit Manual, which outlines the necessary documents required for conducting audits, as well as the timelines and standard formats. Under the online audit mechanism, copies of documents and records can be submitted through email, and any clarification sought from taxpayers can also be provided through email.
The corporate affairs ministry has confirmed that the current audit functionality allows for the feasibility of conducting audits online. Taxpayers can upload the required documents for examination, and tax officers can use the same platform for further review.
In addition to the online audit mechanism, the parliamentary panel has also recommended measures to prevent harassment of honest taxpayers during searches and seizures. As part of this, the committee has suggested installing CCTV cameras in the interrogation rooms to ensure transparency and accountability during the process.
Moreover, the committee has requested the government to prepare a white list of documents required for conducting an online audit. This list would serve as a guidance note for both officers and assesses, providing clarity on the necessary documentation for the audit process.
Overall, the aim of these recommendations and the proposed online audit mechanism is to make the GST audit process more efficient, less intrusive, and to provide better protection for honest taxpayers.
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