AI OCR 
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
GST audit procedures require notice, defined scope, time-limited audits with extensions, and consequences for unpaid tax. GST audit permits the Commissioner or authorised officer to examine a registered person's records, books and documents to verify turnover, exemptions, tax rates, input tax credit and refunds; requires at least fifteen working days' notice in form GST ADT-01; applies to specified audit periods; commences when records are made available or audit is instituted; must normally be completed within three months with possible extension for reasons recorded by the Commissioner; findings are communicated within thirty days and reported in GST ADT-02; discrepancies are communicated and may lead to tax recovery proceedings. (AI Summary)