Whether centre has power to Audit if company falls under State

[POLYPLEX CORPORATIONLTD]

Dear Sir

Our Company falls under State Jurisdiction, We had received letter from Assistant Commissioner CGST Audit for Auditing our records for F.Y. 2017-18 & 2018-19.

Our Question is that,

1. As our company Jurisdictional Office falls under State (SGST), Is CGST is eligible for Audit ?

2. Whether SGST Office also perform Audit after CGST Audit.

[KASTURI SETHI]

Internal audit is to be conducted jurisdiction wise. CGST office cannot conduct audit of a unit which falls in the jurisdiction of SGST office. CGST office appoints its own 'proper officer' for conducting internal audit of the unit and SGST office appoints its own proper officer for this purpose. The said letter mentioned by you may be by mistake.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

AI Summary

Jurisdictional audit limits: central GST cannot audit units under state GST; audits remain jurisdiction-wise unless jurisdiction is transferred. Internal audit is jurisdiction-wise: a CGST office cannot conduct an internal audit of a unit within SGST territorial jurisdiction; each authority appoints its own proper officer to audit units in its territory, and a CGST audit letter directed to an SGST-unit is likely a mistake.