TaxTMI 
TaxTMI 
What is GST AUDIT ? DO AUTHORITY CHECK ALL TRACTION MANUALLY?
23 Sep 2025 
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GST audit procedures: data-driven selection and statutory audits can trigger detailed book scrutiny and tax demands.
GST Audit examines records, returns and documents to verify turnover, tax, refund claims and ITC. Two modes exist: Departmental Audit under Section 65 and Special Audit under Section 66 by a nominated CA/CMA. Selection is largely data driven using return mismatches, ITC vs auto populated records and e way bill reconciliation; only high risk or discrepant cases undergo detailed book and invoice scrutiny. The earlier turnover threshold for mandatory audit reconciliation (GSTR 9C) was removed from FY 2020 21, but audits can still be initiated for any taxpayer. (AI Summary)
GST Audit examines records, returns and documents to verify turnover, tax, refund claims and ITC. Two modes exist: Departmental Audit under Section 65 and Special Audit under Section 66 by a nominated CA/CMA. Selection is largely data driven using return mismatches, ITC vs auto populated records and e way bill reconciliation; only high risk or discrepant cases undergo detailed book and invoice scrutiny. The earlier turnover threshold for mandatory audit reconciliation (GSTR 9C) was removed from FY 2020 21, but audits can still be initiated for any taxpayer. (AI Summary)