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

Time limit for GST audit: no fixed initiation date; audit completion and subsequent demand follow prescribed limitation periods. There is no fixed due date to initiate a GST audit under section 65; the commissioner may order a suo moto audit with 15 day notice. The audit must be completed within three months, extendable by six months, after which the department issues a show cause notice under the demand provisions and completes demand proceedings within the limitation period measured from the annual return's due date.