TaxTMI 
TaxTMI 
TaxTMI 
| Audit by Tax Authorities | |
| Particulars | Remarks |
| Governing Provisions | Section 65 of CGST Act 2017 and Rule 101 of CGST Rules 2017 |
| Who can conduct Audit | Commissioner or authorised officer |
| Who can be auditee | Registered person only |
| Where audit can be conducted | (1) At the place of business of assessee or (2) In the office of the authority |
| Pre information to conduct audit | Yes. Minimum 15 working days notice is required |
| Form for Information | GST ADT 01 |
| Audit Period | It can be (1) A financial year (2) Part of Financial year (3) Multiples of (1) or (2) |
| What is to be audited | (1) Records (2) Books of accounts (3) Documents used to prepare books of accounts, returns and statements furnished. (4) Correctness of Turnover (5) Exemptions and deductions claimed (6) Rate of tax applied / lassification (7) Input tax credit availed and utilised (8) Refund claimed (9) Other relevant issues |
| When audit shall be deemed to be commenced | Later of - (1) Date of which records are made availabel to tax authorities (2)Actual institution of audit at the place of business |
| Time period to complete Audit | 3 months which can be extended for further 6 months |
| Can there be blanket extension | Satisfaction of Commissioner and reasons to be recorded for such extension. |
| Responsibility of Registered Person | To extend full support for timely completion of audit. |
| Discrepancies in Audit | Shall be communicated to the Regsitered person and he shall file its reply to the auditing authorities. |
| Finalisation of Audit | The findings shallbe informed to registered person within the period of 30 days from thedate of conclusion of audit. |
| For reporting findings | GST ADT -02 |
| Consequences of Audit | If tax is not paid or short pid or erroneously refunded, proceedings may be initiated under Section 73 or Section 74 |
Audit by Tax Authorities - Snapshot
CA Akash Phophalia
Tax Authorities Audit Under CGST Act 2017 Requires 15-Day Notice, Must Conclude in 3 Months, Extendable by 6 Months. An audit by tax authorities under the CGST Act 2017 and CGST Rules 2017 can be conducted by the Commissioner or an authorized officer on registered individuals. The audit can occur at the business location or the authority's office, requiring a minimum of 15 working days' notice via Form GST ADT 01. It covers financial records, turnover accuracy, tax exemptions, input tax credits, and refunds. The audit must be completed within three months, extendable by six months with justification. Discrepancies are communicated to the auditee, who must respond, and findings are reported within 30 days post-audit using GST ADT-02. If discrepancies in tax payments are found, proceedings may be initiated under Sections 73 or 74. (AI Summary)