Audit by Tax Authorities under GST

Q1. Who is authorised to undertake the audit of a taxable person?

Ans. The Commissioner of CGST/Commissioner of SGST or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.

Q2. Whether any reason to believe or evidence is required for initiate audit under Section 65?

Ans. No, Section 65 does not specify any such requirements. Commissioner can initiate audit on any taxable person for such period, at such frequency and in such manner as may be prescribed.

Q3. Should the registered person be informed in advance, prior to conduct of audit?

Ans. The registered person shall be informed, by way of a notice, sufficiently in advance, not less than fifteen working days, prior to the conduct of audit in the manner prescribed.

Q4. What is the time limit for completion of the audit under Section 65(1) and whether the same can be extended?

Ans. The audit under Section 65(1) shall be completed within a period of three months from the date of commencement of audit. The period of completion of audit can be further extended by a period not exceeding six months by the Commissioner for reasons recorded to be in writing.

Q5. What are the powers of the authorised officer in the course of audit?

Ans. During the course of audit, the authorised officer may require the taxable person, (i) to afford him the necessary facility to verify the books of account or other documents as he may require and which may be available at such place, (ii) to furnish such information as he may require and render assistance for timely completion of the audit.

Q6. What will be the consequences if registered person does not provided required information during the audit?

Ans. If registered person does not co-operate during the audit, the authorities may initiate action under Section 67.

Q7. What action will be initiated when the audit conducted u/s 65(1) results in a demand?

Ans. Where the audit u/s 65(1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under Section 73 or Section 74. Recommended Articles

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