Powers of the GST Officer during conduct of Audit u/s 65 of the CGST Act

[Kailash Bang]

Can a tax officer during the course of audit ask the taxpayer for their GST Login credentials?

If yes, where is it written/ prescribed?

Further, are their any instructions/ circulars on what information and documents can an officer during the course of audit demand from the taxpayer?

[KASTURI SETHI]

Answer to first query is NO.

[KASTURI SETHI]

For reply to second query, you need to peruse the definition of 'audit' under Section 2(13) of CGST Act

2(13) “audit” means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder;

For more details you can see Audit Manual of the department which is available on google.

[Amit Agrawal]

While I agree with Shri Kasturi Sethi Ji in toto, w.r.t. question No. 1, I wish to add the following from point of view of practicality:

There are certain reports which can be downloaded from GST portal from tax-paper side only and not from Dept's side. But, these reports helps officer during his audit and makes his job a bit easier.

I see no reason why an assesses should make dept. officer sweat for something which is directly available from portal. Hence, you can always ask officer which of those reports they want, download them at your end and share those reports with the officer.

Non-sharing login credentials and non-sharing of desired reports available on GST portal are two different things. While former is your right, later may not be taken kindly.

And suffice to say, law has given Dept. officers enough power/s - in so many different ways - to effectively deal with such assessee if he refuses to share even those reports (which will be seen by Dept. as creating needless obstacles - based on technicalities - for Dept's officer to carry out effective audit in a time-bound manner).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

Audit powers: officers cannot demand taxpayer GST login credentials, but may request portal reports be shared. Officers conducting audit may examine records, returns and other documents to verify turnover, taxes, refunds and input tax credit and to assess compliance; the Audit Manual supplies procedural detail. A tax officer may not demand a taxpayer's private GST login credentials, though taxpayers may be asked to download and provide specific portal reports, and refusal to supply requested documents or reports can prompt use of other departmental powers to complete the audit.