TaxTMI 
TaxTMI 
Audit u/s.65 completed for 2017-2023 period. Scrutiny Notice received u/s.61
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....udit u/s.65 completed for 2017-2023 period. Scrutiny Notice received u/s.61<br> Query (Issue) Started By: - Raam Srinivasan Swaminathan Kalpathi Dated:- 8-11-2025 Last Reply Date:- 22-11-2025 Goods and Services Tax - GST<br>Got 15 Replies<br>GST<br>Our company was subjected to GST department audit for the years 2017-2020 and also from 2020-2023 tax years u/s. 65. Now department has again intimated discrepancy upon scrutiny of Returns u/s. 61 for 2019-20 and 2021-22. Request the distinguished experts their view and the way forward. Profuse thanks Reply By Sadanand Bulbule: The Reply: Since your company has already been audited under Section 65 in depth for those years, doing another check on the same issues for the same period ....
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....amounts to repeating the same work. Its unnecessary and unfair, unless there is a new issue which is not covered by the audit already conducted. You may represent the factual postion to the concerned authority. If not convinced, bring it to the knowledge of the jursdictional higher authorities in writing for suitable intervention. Reply By KASTURI SETHI: The Reply: It is not feasible to examine ALL the records thoroughly during the allotted days for conducting audit. Reply By Sadanand Bulbule: The Reply: Sagacious response Sirji. Reply By CSSANJAY MALHOTRA: The Reply: 2025 (3) TMI 170 - ORISSA HIGH COURT In cases, where audit has already been conducted, the same cases cannot be selected for scrutiny ....
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....of returns. Scrutiny leads to audit and not vice-versa. Instructions No. 02/2022 dated 22.03.2022 and Instruction No. 02/2023 dated 26.05.2023 issued by CBIC clarifies that if the scrutiny undertaken requires detailed verification the same should be referred to Audit Commissionerate. Where audit u/s 65 has already been conducted by GST authorities, there can not also a further scrutiny u/s 61 – Various Higher Court have held this as the legislature intended there should not be overlap in making probe. Hence the scrutiny notice received post Audit is against the GST statutory provisions. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Profuse thanks to the learned experts for their views and case law references. Lon....
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....g live TMI Reply By KASTURI SETHI: The Reply: It would be the longest battle for the assessee/noticee. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: In this case, the audit was conducted by the CGST department. The timeline taken was around 6 weeks. Further, the scrutiny notice has been received by CGST department. Experts to give their valuable opinion. Thanks Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Sorry, Sec.61 scrutiny notice was also received from the same CGST department. Reply By Padmanathan KV: The Reply: I do not see any legal or procedural bar in department initiating section 61 proceedings for the period for which audit under section 65 was carried out. Of course, this is subject to p....
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....rovisions of section 6(2)(b). Practically, if there is any overlapping of information, you can reply to the Department about the same. Reply By Padmanathan KV: The Reply: This is also subject to the limitation periods under section 73/ 74 etc... as the outcome of neither audit nor scrutiny has mentioned in the query. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, I agree with the views of Sri Sadanand Bulbule Sir. Once an audit is concluded and the findings communicated (in FORM GST ADT-02), the next appropriate step for any unresolved issues would be demand and recovery proceedings under Section 73 or 74, not a re-initiation of the formal scrutiny process for the same period for the same issue and even that o....
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....nce the returns are verified during the audit process, it is considered as all the issues are covered. It is unfair to prepare another audit report for the same period. However, in case it appears to be riskier of higher revenue implications, it may be possible with prior approval of the higher authorities and go for Sec. 73 or 74 without referring to audit. subject to the statutory limitation period. Reply By KASTURI SETHI: The Reply: Issuance of Final Audit Report (Form GST ADT-02) does not mean clean chit for the Audit Period. In case the short levy/non-levy/non-payment of tax (if detected subsequently) is NOT hit by statutory time limitations, Proper Officer can act under Section 61 of CGST ACT....
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..... Proper Officer may be Audit Officer, Range Officer, Preventive Officer etc. as defined under Section 2 (91) of CGST Act Reply By Shilpi Jain: The Reply: Do check whether the issues reported in the scrutiny match with issues clarified in the audit? If yes, you can mention that these were checked during audit and clarified and provide evidences for the same. Also, for the periods up to 19-20 no valid demand can be raised. So to that extent you can communicate and not provide the details. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: To update the panelists: I took the advise of respected Sri.Kathuriji and decided to once again submit the details called for. Submitted the audit report and the connected audit paras all....
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.... of which were accepted during audit and tax due remitted for FY 2020-21 including ITC availed, details of supply for the year, RCM paid etc. Also, provided details of the 10 issues raised u/s. 61 in ASMT-11 There were some minor amounts of late fees which was overlooked during audit and this was duly remitted. Suptt confirmed satisfaction in ASMT-12. Although I took the path of least resistance, I was happy that the client was not burdened with any tax demand. The entire exercise sapped 3 days of my time and was really stressful and exhausting to say the least. Thanks to all the panelists Reply By KASTURI SETHI: The Reply: Sh.Raam Srinivasan Swaminathan Kalpathi Ji, Sir, Thanks a lot for updating. Your tell-tale express....
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....ion/experience would guide others. <br> Discussion Forum - Knowledge Sharing ....