Section 65

[NARENDER YARRAGORLA]

Is there any chance to get audit under section 65 after getting notice u/s 73/74 for any financial year?

[Shilpi Jain]

There is no bar for audit after SCN.

[KASTURI SETHI]

Answer is yes. The issuance of SCN whether under Section 73 or 74 in any financial year, is not the end of the road for the department. Issuance of SCN is not closure of the chapter for a particular period for tax-payer. The purpose of audit under Section 65 is to detect short levy/non-levy of tax. Sometimes issue may be different but the period of SCN may be same and sometimes issue may be same but period may be different.

AI Summary

GST Audit Possible After SCN Issuance; No Restriction Under Section 65 Despite Notices Under Sections 73 or 74. A query was raised regarding the possibility of a Goods and Services Tax (GST) audit under Section 65 after receiving a notice under Sections 73 or 74 for any financial year. Two responses clarified that there is no restriction on conducting an audit after the issuance of a Show Cause Notice (SCN). The issuance of an SCN does not conclude the matter for the taxpayer for that period, as the audit aims to identify any short levy or non-levy of tax. The issues or periods covered by the SCN and audit may vary.