GST Audit- Audit by tax authorities section 65 of GST Act

Audit by tax authorities -GST audit section 65 of GST Act

GST Audit – Audit by tax authorities, section 65 of CGST ACT

This section Covers

  • Audit By Tax Authorities under CGST ACT, section 65
  • Audit IGST ACT, section 20(XIV)
  • Audit under UTGST/SGST ACT, section 21(XV) or state acts accordingly

Audit Chapter (XIII) – Section 65 and Section 66

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             SEC 66 of GST Act- Special Audit

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Types of Audit under GST

The following three types of audits are envisaged under the GST :

(i) The first type of audit is to be done by a chartered accountant or a cost accountant  section 35(5)  where turnover exceeds certain threshold specified in Rule 80(3) i.e. 2 crores;

(ii) Second type of audit is to be done by the commissioner or any officer authorised by him in terms of Section 65 of the CGST Act, 2017 read with Section 20(xiv) of the IGST Act, 2017 and Section 21(xv) of UTGST Act, 2017, read with Rule 101 of CGST Rules, 2017

(iii) The third type of audit is called the Special Audit and is to be conducted under the mandate of Section 66 of CGST Act, 2017 read with Rule 102 of CGST Rules, 2017.

KEY POINTS

Who can undertake the Audit under section 65 of CGST Act

Only commissioner or officer authorised by him

Period of Audit: A financial year or multiple therof

Important Time Limits: 

  • Notice must be server to registered person atleast 15 days prior to conduct audit in form FORM GST ADT01
  • Audit must complete within 3 months from the date of commencement
  • The period may be extended further by 6 months by quoting reasons in writing
  • Audit findings must, its reasons and rights & obligation of the registered persons must be communicate to registered persons within 30 days from the date of conclusion of  in Audit FORM GST ADT-02

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Recent Ammendments/Updates

 

Notifications Related to Audit by Tax Authorities you will find below:

 

 

Section 65 as CGST Act i.d Audit By Tax Authorities under gst – as it is from act(bare act)

Audit By tax authorities under GST act

65. (1) The Commissioner or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.

(2) The officers referred to in sub-Section (1) may conduct audit at the place of business of the registered person or in their office.

(3) The registered person shall be informed by way of a notice not less than fifteen working days prior to the conduct of audit in such manner as may be prescribed.

(4) The audit under sub-Section (1) shall be completed within a period of three months from the date of commencement of audit:

Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months.

Explanation. – For the purposes of this sub-Section, the expression ‘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.

(5) During the course of audit, the authorised officer may require the registered person,

(i) to afford him the necessary facility to verify the books of account or other documents as he may require;
(ii) to furnish such information as he may require and render assistance for timely completion of audit.

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

(7) Where the audit conducted under sub-Section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under Section 73 or 74.

 

Important Forms    FORM GST ADT – 01

Form GST ADT-01, Notice of Audit under GST by Tax Authorities

 

                                                                                                                                     FORM GST ADT – 01

                                                                                                                                         [See rule 101(2)]

Reference No.:

Date:

To,

————————–

GSTIN …………………………………….

Name ………………………………………

Address ……………………………………

Period – F.Y.(s) – ……………………………..

Notice for conducting audit

Whereas it has been decided to undertake audit of your books of account and records for the financial year(s)……….. to ……….. in accordance with the provisions of section 65. I propose to conduct the said audit at my office/at your place of business on ——-.

And whereas you are required to:-

afford the undersigned the necessary facility to verify the books of account and records or other documents as may be required in this context, and furnish such information as may be required and render assistance for timely completionof the audit.

You are hereby directed to attend in person or through an authorised representative on ………………….. (date) at……………………………(place) before the undersigned and to

produce your books of account and records for the aforesaid financial year(s) as required for audit.

In case of failure to comply with this notice, it would be presumed that you are not in possession of such books of account and proceedings as deemed fit may be initiated as per the provisions of the Act and the rules made thereunder against you without making any further correspondence in this regard.

Signature …

Name

Designation ……………………….

 

Form GST ADT-02, Audit Report by Tax Authorities under GST

FORM GST ADT – 02

[See rule 101(5)]
Reference No.: Date:

To,

————————–

GSTIN ………………………………..

Name ……………………………………

Address ………………………………….

Audit Report No. ……….. dated ……..

Audit Report under section 65(6)

Your books of account and records for the F.Y.…………… has been examined and this

Audit Report is prepared on the basis of information available / documents furnished by you and the findings are as under:

Short payment Integrated tax Central tax State /UT tax Cess
of

Tax

Interest

Any other
amount

[Upload pdf file containing audit observation]

You are directed to discharge your statutory liabilities in this regard as per the provisions of the Act and the rules made thereunder, failing which proceedings as deemed fit may be initiated against you under the provisions of the Act.

Signature ………………………….

Name ……………………………..

Designation ……………………….