GST Audit and time limit

[VENU K]

I have given a reply to an audit observation in the following fashion. Please provide your opinions on the matter

"The Auditee is in receipt of preliminary audit observations issued on 12/11/2014.In this matter, since the Audit had commenced on 18/12/2023 as per your letter No XXXX. The continuation of Audit beyond a period of 9 months from the date of commencement of audit is a violation of express provisions of Sec 65 (4) time limits and as such the notice dated 12/11/2014 issued by you is without jurisdiction and we request you to please drop further proceedings in this matter.

Further the Auditee also requests you to provide a copy of the Specific sanction accorded by the Commissioner to continue the Audit beyond the period of three months as per Proviso to Sub Section 4 of Section 65.

Without Prejudice

The Auditee disputes all allegations in the notice made under serial numbers 1 to 15 as being contrary to law, existing jurisprudence as well as express provisions of the law and therefore rejects the entire demand."

AI Summary

Audit time limits can void audit objections unless statutory commencement and authorized extension are demonstrably complied with.
Section 65(4) prescribes a limited period for completion of GST audits, with extension available only on Commissioner recorded reasons; the statutory explanation of the date of commencement of audit-when records are made available or audit is instituted-affects whether time limits were observed and can be used by revenue to justify continued audit activity. Taxpayers alleging procedural lapse should demand reasoned treatment of such objections, seek documentary proof of any authorized extension, and concurrently contest substantive audit findings with detailed records.