GST Audit for 6 Financial Years

[VAISHACH Vaishach]

Hi Experts

I have two questions

I have been issued GST Audit notice for my concern from FY 2018-2019 to FY 2023-24 with GST ADT-01 dated 25.03.2025

1.How many years can the GST Department raise these notices/ audits as the notice itself dates back to FY 2018-19. Is there a time limit on the same?

2. If in the course of Audit, i am supposed to pay some amount with interest /penalty, now that the Amnesty Scheme is over, what are the remedies available with respect to Interest and Penalty portion?

Thank you for your replies in Advance

[Sadanand Bulbule]

Is this notice issued under Section 74 of the CGST Act ?

[VAISHACH Vaishach]

The Audit notice is issued as per the provisions of Section 65 of the Act.

In my understanding after the audit, the officer will then issue the demand notice under the relevant provisions in the Audit report 

[KASTURI SETHI]

(1) Audit can be conducted at any time. There is no such restriction. Time limit is only for issuance of SCN and that limitation has been prescribed under Sections 73 and 74.

(2)  It is not necessary that every audit results in issuance of the SCN. I have seen so many Final Audit Reports where no audit objection was raised. 

Remedy is sought for only when any problem arises. No need to worry about what has not happened. 

[Padmanathan KV]

1. There is no time limit fixed for initiating audit. 

2. Your liability will depend on the nature of demand. There are time limits specified for demand under section 73 and 74. However, in case of self assessed tax and/or interest, the Department can initiate recovery under 79 rws 75. In case of such self assessed tax and/or interest, the amnesty scheme benefit is also debatable. Similarly, section 76 also has to be considered, where Department can recover any amount collected by a person as tax but not remitted the same. There is no time limit prescribed for this provision also. 

[Sadanand Bulbule]

There is significant sense in the experts' reply.

[VAISHACH Vaishach]

Thank you for your responses experts. Highly appreciate it

[Birendra Yadav]

Hi Experts

I have two questions

I have been issued GST Audit notice provision of section 65 of the CGST Act 2017 from FY 2018-2019 to FY 2023-24 with GST ADT-01 dated 22.05.2025

1.How many years can the GST Department raise these notices/ audits as the notice itself dates back to FY 2018-19. Is there a time limit on the same?

2. If in the course of Audit, i am supposed to pay some amount with interest /penalty, now that the Amnesty Scheme is over, what are the remedies available with respect to Interest and Penalty portion?

3. What is the time bar for GST audit is am I liable to pay GST/Interest/Penalty if any arises for FY 2018-19 to 2019-20.

Thank you for your replies in Advance

[Sadanand Bulbule]

• Section 65 of CGST Act, 2017 empowers the department to conduct audit of records of any registered person.
• The law does not prescribe a fixed “look-back period” for audit initiation.
• However, any demand flowing from the audit must be raised by way of a Show Cause Notice (SCN) under Section 73 or Section 74 of the Act.
• Limitation for raising SCN/demands:
  • Section 73(10)? 3 years from the due date of annual return for the relevant FY (for cases not involving fraud, willful misstatement, suppression).
  • Section 74(10)? 5 years from the due date of annual return (for fraud, willful misstatement, suppression).
  • So while audit itself can cover earlier years, recovery/demand is time-barred beyond these limits.

AI Summary

GST audit timeframe: audits may cover earlier years, but demands must meet statutory limitation periods affecting recovery options.
Section 65 allows audits without a fixed retrospective look back period; however, any demand flowing from an audit must be issued by way of a Show Cause Notice and is subject to statutory limitation rules distinguishing ordinary cases from those involving fraud, willful misstatement or suppression. Recovery routes for self assessed tax, interest or amounts collected but not remitted follow separate provisions and may have different temporal and remedial consequences, and the applicability of expired amnesty schemes to interest and penalties arising from audit findings is fact specific.