Time Limit to Audit u/s 65

[NARENDER YARRAGORLA]

For the FY 2017-18, what is the due date to conduct audit u/s 65?

[SOWMYA CA]

For audit u/s. 65, there is no due date to conduct the audit. The commissioner may suo moto authorize audit with 15 days notice to the assessee. The audit needs to complete within 3 months + an extended period of 6 months. After completion of audit, the department proceeds with issue of SCN u/s. 73 /74 as the case may be. So essentially all proceedings will be completed by 3/5 years from the due date of annual return. In the instant case, the due date for 2017-18 was 7-Feb-2020 and all proceedings to be completed by 6-Feb-2023 under s.73 or 6-Feb-2025 under s.74

[KASTURI SETHI]

I agree with Madam SOWMYA CA. There is due date for issuance/service of demand SCN and not for audit. Accordingly, the department plans schedule for audit of the units much before the due date of service of Demand-SCN so that the demand does not get time barred, if short levy/non-levy is detected.

AI Summary

Clarification on Audit Time Limit Under GST Section 65 for FY 2017-18: No Specific Due Date for Audit Completion. A query was raised regarding the time limit for conducting an audit under section 65 of the Goods and Services Tax (GST) for the fiscal year 2017-18. It was clarified that there is no specific due date for conducting the audit itself. The commissioner can authorize the audit with a 15-day notice, which must be completed within three months, extendable by six months. Subsequent proceedings, including the issuance of a show cause notice (SCN) under sections 73 or 74, must be completed by February 6, 2023, or February 6, 2025, respectively. The department schedules audits before the SCN due date to avoid time-barred demands.