Difference Between Audits under Section 65 and Section 66 of CGST Act

Audit distinction: Special audit and departmental audit impose different notice, timing, reporting and hearing safeguards.

Audits under Section 65 are departmental reviews by authorised officers with a prior notice requirement, a three month completion period (with extension), and lead to audit reports that may result in show cause proceedings. Special Audits under Section 66 are conducted by a commissioner nominated chartered or cost accountant without a notice requirement, have a prescribed shorter completion term (with extension), require that an auditee be heard if audit material may be used against them, and likewise produce reports that can trigger show cause proceedings.