Principles of audit

GST audit should follow risk based targeting, systematic planning, record scrutiny, fair hearing, professional conduct and feedback.

GST audit measures compliance by applying an approved risk based targeting strategy and professional methodology. It begins with pre audit desk review, advances under a sanctioned audit plan led by an Audit Officer, and focuses scrutiny on declared turnover, taxes paid, refunds and input tax credit claims. Audits must document proceedings and findings, provide auditees a fair opportunity to be heard, adhere to high professional standards, and implement feedback to validate targeting and assess taxpayer experience.