General procedure for GST Audit u/s 65 of the MGST Act 2017

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....lected RTPs. The present circular is being issued to clarify certain aspects related to GST Audit u/s 65 of MGST Act, 2017. A. Objects of GST Audit . The audit of a RTP would be conducted as per section 65 of MGST Act 2017 along with other relevant provisions of MGST Act 2017 and rules framed thereunder. The primary object of GST Audit is to ensure and promote, "the correctness of turnover declared, taxes paid, refund claimed & input tax credit availed, and to assess the compliance of Registered Taxpayers (RTP) with the provisions of GST Act and rules made there under" GST Audit is a tool with MGSTD to ascertain & ensure compliance of laws that are implemented by the MGSTD. At a practical level, the object of audit is to ascer....

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....orrectness of Returns, Annual Returns filed by the dealer under GST Act. Obviously the AO will verify the books of accounts maintained by the RTP (whether in hard format or soft format) along with stile invoices, purchase invoices i.e. Outward & Inward supplies, sales purchase journals ledger, cashbook, delivery chalans, e way bills, dispatch proofs, bank statements and every other document or piece of evidence to ascertain the correctness of turnover and the correctness of claims made through returns. The AO may also ask for agreements, purchase / work orders, tender documents, etc, if such documents are required for ascertaining the correctness of returns. The AO is also authorised to ask for the details or filing of returns and payments ....

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....e AO only in circumstances where use of such powers becomes necessary for achieving the purpose of audit, and wherever the information sought is not coming forward voluntarily. (v) The AO can verify stock of goods, and ask for clarification if there is any discrepancy. It is however, made clear that the AO on no account shall remove or cause to be removed from the place of business any books of accounts, other documents or any cash or stock. AO on no account can carry out search of premises of RTP. D. Rights and duties of the Registered Person: Rights of the dealer 1. To check the identity of each and every member of the audit team. 2. To get at least 15 days prescribed time limit for collection, compilation, preparation and arrange....

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....esentative at the place of business (POB) where audit is being conducted during audit activity so that he can explain the books and the business activity properly. 6 To extend necessary cooperation to the audit team during POB audit visit for timely completion of audit. 7 To follow the statutory timelines in case of making payment if audit results are accepted and/or to comply with notice under section 73/74 of GST Act in case audit findings are not accepted. E. Indicative List of documents to be submitted / to be kept ready for verification by dealer as per GST-ADT-01 1. Financial statements and reports- Balance Sheet, Tax Audit Report, Annual Financial Statement, Cost Audit Report, Trial Balance 2. Inward -Outward supply summa....