CHAPTER VI REGISTRATION 22, Persons liable for registration.— (1) Every supplier shall be liable to be registered under this Actin the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if tumover in a financial year exceeds twenty lakh rupees: “© Substnated for “under entry £4” by The Ceatral Goods and Services Tax (Amendment) Act, 2018 (No. 31 0F2018) - Brought into force wee. O1* February, 2019. 48 CHAPTER VIREGISTRATION Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate tumover in a financial year exceeds ten lakhrupees: [Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate tumover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be s0 notified:|” [Provided also that the Govemment may, at the request of a State and on the recommendations of the Council, enhance the aggregate tumover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged ‘exclusively in the supply of goods, subject to such conditions and limitations, as may be notified: Explanation—For the purposes of this sub-section, a person shall be considered to bbe engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the ‘consideration is represented by way of interest or discount.]** 2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concem, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. (4) Notwithstanding anything contained in subsections (J) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the ‘case may be, demerger of two or more companics pursuant to an order of a High Court, Tribunal or otherwise, the transferce shal be lable tobe registered, with effect from the date ‘Inserted by The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) ~ Brought into force wef O1* February, 2019, Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) ~ Brought into force wes. O1* January, m0.(CHAPTER VIREGIsTRATION ‘on which the Registrar of Companies issues a cetfieate of incorporation giving effec to such orderof the High Court or sural © the expression ude all supplies made by the tasabe persoa, whether on his own account or made on behalf ofall his principals; the supply of goods, after completion ofjob work, by a registred job worker shall be treated as the supply of goods by the principal referred to in section 143, andthe value of such goods shall not be included inthe aggregate turnover of the registered job worker; Gi) the expression “special category Sates" shall mean the Stats a specified in subscause (@) of clause (4 of artte 279A of the Constitution [except the State of Jammu and Kashmis!" [and States of Arunachal Pradesh, Assam, Himachal Pradesh, ‘Meghalaya, Sikkim and Untarakhand.)® 23, Persons not Hable for regstation.— (1) The following persons shall not beliable to registration, namety:— (any person engaged exclusively in the business of supplying goods or services or both that are not lable to tax or wholly exempt ffom tax under this Act or ‘under the Integrated Goods and Services Tax Act: © anagricuturis, tothe exten of supply of produce out of cultvaton ofland. @ The Government may, on the recommendations of the Council, by notifieation, specify the category of persons who may be exempted from obtaining registration underthis Act 24, Compulsory registration in certain cases.— Notwithstanding anything contained in subsection (1) of section 22, the fellowing categories of persons shall be required tobe registered under this Act “Toad by The Cert Goods and Servs Tax (Estes to am And Kas) Act, 2017 (No. 26 (2017 (Cagzndun otis povsion cd vide Indian Inatesof Msagement Act, 2017 ted 31" Deserater, 2017 No. 33 of2017)- Bought into fre wie 8° Jy, 2017. nse by The Cental Gods and Service Tax (Amendment) Act, 2018 (No 31 of 208) ~ Brought Int fore wef O1* Petry, 2018. 0 (CHAPTER VIREGISTRATION © persons making any inter State taxable supply; @ casual table persons making taxable supply; i) persons who are required o pay tax under reverse charge; G9) person who are required to pay tax under sub-section (9 of section; () nonresident taxable persons making taxable supply; (operons who are required to deduct tax under section S1, whether or not separately registered under this Act; (i) persons who make taxable supply of goods or services or bth on behalf of ‘other taxable persons whether as an agent or otherwise; (ii) Input Service Disuibutor, whether or not separately registered under this Act; @)__persons who supply goods or services or both, other than supplies specified ‘euticussnatien: 08 dlenties % Cemented: dindendiceerenm: emnter sailsrequired to collet tax at source under section $2; () every electronic commerce operator [who is required to collect tax at source unde section 52) (4) every person supplying online information and database acess or retrieval services from a place ouside India toa person in India, other than a registered peso and (i) such other person or cass ofperzons as may be noid by the Government on the recommendations ofthe Council 25. Procedure for reistration.—(1) Every person who islible tobe registered under section 22 or section 24 shall apply fo registration in every such State or Union teritory in which he is so able within thirty days from the date on which he becomes liable to registration, in zuch manner and subject o such conditions as may be prescribe: Provided that a casual taxable person ora non-resident taxable person shall apply aed by The Coal Goo and Senics Tax (Amendment) Ac, 218 (No, 31 of 208) ~ Brought Into foce we 0 Febery, 2018 st (CHAPTER VInsensteATION for registration atleast five days prior to the commencement of busines: [Provided farther that person having a nit as defined inthe Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economie Zone developer shall have to apply for a separate registration, as distinct from his place of ‘business located outside the Special Eeonomic Zone in the same State or Union temitory.)* Explanation-—Every person who makes a supply fom the territorial waters of| India shall obtain registration in the coastal State or Union territory where the nearest point ofthe appropriate baseline is located @) A person secking registration under this Act shall be granted a single registration ina Stateor Union testy [Provided that a person having multiple places of business in a State ot Union teritory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed} @)_Aperson, though not lable to be registered under section 22 or section 24 may get himself registered voluntarily, ad all provisions ofthis Act, as ae aplicable toa registered person, shall apply to such person. @ A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State ot Union teritory shal, in respect ofeach such registration, be treated as distinct persons forthe purposes ofthis Act. (8) Where person who has obtained or is required to obtain registration ina State or Union teritory in respect ofan establishment, has an establishment in another Stae oF Union testy, then such establishments shall be teated as establishments of Ince by The Cental Goods and Sens Tox (Amedinen) Act, 2018 (Mo 31 of 218) Brought * Sutter “Provided hat apson having sine vera a Sat ox Unni ay te gre pt pian ech ane ti, a 0 ch cae amy ‘by The Cental Goods and Sevees Tax (Amendnen) Act, 2018 (80 31 of 218) ~ Brought eto free ‘wel Ol Febery. 2018 2CHAPTER VIREGISTRATION inct persons for the purposes ofthis Act. (© Every person shall have a Permanent Account Number issued under the Income: tax Act, 1961 in order tobe eligible for grant of registration: Provided that a person required to deduct tax under section 51 may have, in liew of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registra (6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed Provided that ifan Aadhaar number is not assigned to the registered person, such person shall be offered altemate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe: Provided further that in case of filure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions ofthis Act shall apply as ifsuch person does not have a registration. (6B) On and fiom the date of notification, every individual shall, in order to be cligible for grant of registration, undergo authentication, or furnish proof of possession of ‘Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify inthe said notification: Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered altemate and viable means of identifi the Government may, on the recommendations of the Council, specify in the said notification, (6C) On and fom the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustes, authorised representative, authorised signatory and such other class of 33 (CHAPTER VIREGISTRATION persons, in such manner, as the Government may, on the recommendations of the Council, specify in te said notification: Provided that where such person or class of persons have not been assigned the ‘Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Goverment may, on the recommendations of the Council, specify inthe said notification. (6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union teritory or part thereof, as the Government may, on the recommendations of the Council, specify by ‘eames.Explanation—For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.]* (2) Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (/) on the basis of such other documents as may be prescribed. (8) Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person in such manner as may be prescribed. (©) Notwithstanding anything contained in sub-section (),— @ any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and ©@ _ anyotherperson or class of persons, as may be notified by the Commissioner, shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by * Inserted by The Finance (No. 2) Act, 2019 (No. 23 of 2019) ~ Brought into force w.c.f. O1" January, 2020. 54 CHAPTER VIREGISTRATION them, as may be prescribed. (10) The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. (11) A certificate of registration shall be issued in such form and with effect from such date as may be prescribed. (12) A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under sub-section (0), if no deficiency has been communicated to the applicant within that period.‘29. Cancellation [or suspension}® of registration.— (1) The proper officer ray, ether on his ovn motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the czcamstances wher * tne hy The Conia Gone ant Sesion Tax (Amendmens) Ac, 208 (0,31 of 2018) ~Broght ino ere wet 1" Ferry, 218 56 CHAPTER VIeecasTRATION (@) thebusinesshas been discontinued, transferred fully forany reason including death of the proprictor, amalgamated with other legal entity, demerged or otherwise Aisposed of or (©) there is any change inthe constitution ofthe business; or (© (the taxable person is no longer lable tobe registered under section 22 or section 24 or intends to optout of the registration volunasly made under sub-section (3) of section 25;)* [Provided that during pendency of the proceedings relating to cancelation of registration filed by the registered person, the registration may be suspended for such period and in suck manner as may be prescribed)” @) The proper officer may cancel the registration of person from such date, Including any reospective dae, ashe may deem ft, where, — (@) a registered person has contravened such provisions ofthe Actor the rules made thereunder as may be prescribed; or (©) 2 person paying tax under section 10 has not furnished returns for three ‘consecutive tax periods; oF (© any registered person, other than a person specified in clause (0), has not fumished retums for a continuous period of six months; or (® any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or (©) registration has been obtained by means of fraud, wilful misstatement or suppression of fees ‘Provided thatthe proper ocr shall not cancel the registration without giving the person an opportunity of being heard * Sb for “ete table peso, ober than the Peon rested under subsection () of section 25, tea lone eto beeper secon 22 ssn 24" bythe Finan At, 2029 (Ne. 12 of 2020) = Bec nto fre we OT Snaay, 22. 57 Ise by The Cental Goods and Secs Tax (Amentines) Ac, 2018 (No, 3 of 201) - Srougt 7 CHAPTER VIacossTRATION [Provided further that during pendency of the proceedings riating to cancellation of registration, the proper lier may suspend the registration for such period and in such ‘esacislala tala ial aibaelalmiahcialatl(3) Thecancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. (4) ‘The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services ‘Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act. (5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi- finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher. (© The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.3.Audit under GST Threshold for Audit Every registered taxable person whose turnover during a financial year exceeds the prescribed limit [as per the latest GST Rules, the turnover limit is above Rs 2 crores shall get his accounts audited by a chartered accountant or a cost accountant. He shall electronically file: 4. an annual return using the Form GSTR 9 by 31st December of the next Financial Year* , 2. the audited copy of the annual accounts, 3. a certified reconciliation statement in the form GSTR-SC, reconciling the value of supplies declared in the return with the audited annual financial statement, 4, and other particulars as prescribed. Rectifications to Returns After GST Audit If any taxable person, after furnishing a retumn discovers any omission/incorrect details (from results of audit), he can rectify subject to payment of interest. However, no rectification will be allowed after the due date for filing of return for the month of September or second quarter, (as the case may be), following the end of the financial year, or the actual date of filing o the relevant annual return, whichever is earlier. Audit by Tax Authorities + The Commissioner of CGST/SGST (or any officer authorized by him) may conduct an audit of a taxpayer. The frequency and manner of an audit will be prescribed later. A notice will be sent to the auditee at least 15 days before. The audit will be completed within 3 months from the date of commencement of the audit. + The Commissioner can extend the audit period for a further six months with reasons recorded in writing. Obligations of the Auditee The taxable person will be required to: 1. provide the necessary facility to verify the books of accounvother documents as required 2. to give information and assistance for timely completion of theaidgli1. provide the necessary facility to verify the books of accounv/other documents as required 2. to give information and assistance for timely completion of the audit. Findings of Audit On conclusion of an audit, the officer will inform the taxable person within 30 days of: + the findings, + their reasons, and + the taxable person's rights and obligations If the audit results in detection of unpaid/short paid tax or wrong refund or wrong input tax credit availed, then demand and recovery actions will be initiated. Special Audit When can a special audit be initiated? The Assistant Commissioner may initiate the special audit, considering the nature and complexity of the case and interest of revenue. If he is of the opinion during any stage of scrutiny/ inquiry/investigation that the value has not been correctly declared or the wrong credit has been availed then special audit can be initiated. Aspecial audit can be conducted even if the taxpayer's books have already been audited before. Who will order and conduct a special audit? The Assistant Commissioner (with the prior approval of the Commissioner) can order for special audit (in writing). The special audit will be carried out by a chartered accountant or a cost accountant nominated by the Commissioner. Time limit for special audit The auditor will have to submit the report within 90 days. This may be further extended by the tax officer for 90 days on an application made by the taxable person or the auditor. Cost The expenses for examination and audit including the auditor's remuneration will be determined and paid by the Commissioner.Findings of special audit The taxable person will be given an opportunity of being heard in findings of the special audit. If the audit results in detection of unpaid/short paid tax or wrong refund or input tax credit wrongly availed then demand and recovery actions will be initiated. Thus, GST is a completely new tax regime already taking India by storm. Businesses will face challenges in transition and application of GSTSection 39 of CGST Act. Furnishing of returns. — (1) Every registered person, other than an Input Service Distributor or a non- resident taxable person or a person paying tax under the provisions of section 10 oF section 51 or section 52 shall, for every calendar month or part ‘thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof. (2) Aregistered person paying tax under the provisions of section 10 shall, for each quarter or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable and tax paid within eighteen days after the end of such quarter. (3) Every registered person required to deduct tax at source under the provisions of section 51 shall furnish, in such form and manner as may be prescribed, a return, electronically, for the month in which such deductions have been made within ten days after the end of such month. (4) _ Every taxable person registered as an Input Service Distributor shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, within thirteen days after the end of such month, (5) Every registered non-resident taxable person shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, @ return, electronically, within twenty days after the end of a calendar month or within seven days after the last day of the period of registration specified Under sub-section (1) of section 27, whichever is earlier. (6) The Commissioner may, for reasons to be recorded in writing, by Notification, extend the time limit for furnishing the returns under this section for such class of registered persons as may be specified therein: Provided that joner of State tax or Union any extension of time limit notified by the Com ified by the Commissioner. territory tax shall be deemed to be n¢ (7) Every registered person, who is required to furnish a return under sub- section (1) or sub-section (2} or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.(7) Every registered person, who is required to furnish a return under sub- section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return. (8) Every registered person who is required to furnish a return under sub- section (1) or sub-section (2) shall furnish a return for every tax period whether or not any supplies of goods or services or both have been made during such tax period. (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub- section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than asa result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier. (10) A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods has not been furnished by him.3, Issue of registration certificate (1) Subject to the provisions of sub-section (12) of section 25, where the application for grant of registration has been approved under rule 2, a certificate of registration in FORM GST REG-06 showing the principal place of business and additional place(s) of business shall be made available to the applicant on the Common Portal and a Goods and Services Tax Identification Number (hereinafter in these rules referred to as “GSTIN") shall be assigned in the following format: (a) two characters for the State code; (b) ten characters for the PAN or the Tax Deduction and Collection Account Number; (©) two characters for the entity code; and (d) one checksum character, (2) The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within thirty days from such date. (3) Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration under sub-rule (1) or sub-rule (3) or sub-rule (5) of rule 2. (4) Every certificate of registration made available on the Common Portal shall be digitally signed by the proper officer under the Act. (5) Where the registration has been granted under sub-rule (5) of rule 2, the applicant shall be communicated the registration number and the certificate of registration under sub-rule (1), duly signed, shall be made available to him on the common portal within three days after expiry of the period specified in sub-rule (5) of rule 2.8. Suo moto registration (1) Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the ‘Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG-11. (2) The registration granted under sub-rule (1) shall be effective from the date of order granting registration. (3) Every person to whom a temporary registration has been granted under sub-rule (1) shall, within ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 1 or rule 5 unless the said person has filed an appeal against the grant of temporary registration, in which case the application for registration shall be submitted within thirty days from the date of issuance of order upholding the liability to registration by the Appellate Authority. (4) The provisions of rule 2 and rule 3 relating to verification and issue of certificate of registration shall, mutatis mutandis, apply to an application submitted under sub-rule (3). (5) The GSTIN assigned pursuant to verification under sub-rule (4) shall be effective from the date of order granting registration under sub-rule (1).DGM (F&A). MEGPTCL ection 2(11) of the CGST Act 2017 defined the assessment as the determination of tax lability under this act and includes self-assessment, reassessment provisional assessment , summary assessment and best judgement assessment, On a broader sense, “assessment is all about the estimation of tax Inbility "of a registered person ie, amount of tax payable on value of goods oF services. of both supplied by him. 2017: Seetion of the 59 of the act every registered person shall selfassess the tax payable on supplied made during tax period and file the return of each tax period as per section 39 of the CGST Act nal_ Assessment under of the CGST. ‘Act_2017; Section G0 of the Act enumerates that the ‘provisional assessment is carried out in ease where a taxable person is unable to determine his value of supply o¢ rate of taxes applicable there to the Proper officer may within 90 days from the receipt of application along with requieed document issue an order specifying the rate and value which tax has Co pay on provisional basis. In tems of the section 0) a registered person are bound to execute the bond and furnish surety or security in the form of Bank Guarantee ‘which shall not exceeding 25% of the amount covered tunder the bond, ‘The proper officer shall determine the tax lability on provisional basis within six months fom the date of communication of the provisional assessment order after taking into consideration such information as may be required for finalising the assessment. Joint or additional commissioner may record in writing the reason to extend the date of final assessment onder to further six months ‘maximum. The commission may extend the date for further period of 4 years. Thus, a Provisional assessment can remain provisional fora period of masimum of 5 years. ‘The registered Person shall be liable to pay interest on so ouch of the smount of tax payable on provisional basis which remains unpaid on the date of payment of taxes under section 60(4) of the act. A registered person shall be entitled for refund if the amount of taxes paid on provisional basis exceeds the actual lability determined on finalisation of assessment. ‘Scrutiny of returns: Once the registered person furnishes the return the proper officer may scrutinize the returns and. related particulars to verity its correctness. If there is any discrepancy, between the returns and available information, the same discrepancies will be communicated to the ASSESSMENT AND AUDIT UNDER GST CMA Bibhudatta Sarangi registered person for giving explanation on it. In terms of the section 60(3)f the registered person_fals to fuenish any satisfactory explanation to the proper officer within 30 days fom the date of communication of discrepancies, then the against the registered person as per Section 65, 66, 67 and determine the dues or 65, 66, 67 and determine the per Section 73, 74 dues of penalty if an ‘Assessment of Non Filers of Returns; As per Section 62 of the act empowers the proper officer to make best judgement assessment If the registered person fails. to furnish the return under Section 39 oF final retum under section 45 even after submission of notice under Section 46. If the registered person fails to file the retuens as per the defined scetions and rules or where a taxable person fails to obtain the registration or Whose registration is cancelled and they are Hable to tax, then the proper officer assess the tax lability to the best of his judgment and issues the order ‘of best judgment assessment within a period of 5 years from the date of Annual Return of the financial year to which tax, ‘not paid relates. The registered person will be given 15 days? time for submission of theie reply after issue of best judgement notice, Assessment of Unregistered Person: As per Section 3 , 2 taxable person is Hable to be registered in accordance with the provision ofthe Section 22 of Section 24 but fils to obisin registration or whose registration has been cancelled on account of dzcumstances mentioned in Section 29(2) but who was Fable to pay tax , the assessing officer ‘may assess the tax lability to the best of his judgement for the relevant tax period and issue assessment order within five years from the date of furnishing annual return ic. 31st December following the financial year to which the x paid relates. in Special G GST (Section 64): As per Section 64 (1), If the proper officer is having such evidences which proves that there is some discrepancies in the tax Kability, chen he may with the previous permission of the Joint Commissioner or Addl. Commissioner assess the tax liability in the interest of the revenue. Further, If the taxable person to whom the tax Liability is imposed is not ascertainable, then the person in charge shall be liable to pay the assessed tax or any other dues. siie ct GST Ginction 5: ‘The GST regime continues to promote the scheme of self assessment like erstwhile indirect tax laws and Audit of ‘TAX BULLETIN - ANNIVERSARY EDITION - THE INSTITUTE OF COST ACCOUNTANTS OF INDIA. 1records of tax payers is the basis for the proper functioning, of sclE-assessment based tax system. As per section 2(13) of CGST Aet, 2017, GST Audit means examination of records, rerumns and documents maintained and furnished by registered person to check the following:- 3) Verify the eorrcetness of turnover declared. b) Input tax credit availed and utilized. ©) Exemptions and deductions claimed. 4) Ratc of tax applied in respect of supply of goods or services ete. under the GST Law:- 1. GST Audit u/s 356) of Act, if tumover exceeds prescribed limit (ue Rs. 2 Crore) 2. GST Audit by tax authorities u/s 65. 3. Special GSI’ audit direction from department u/s 6. GST Audit u/s 35(5) ed person, whose tumover during the financial year excecds the preseribed “GST audit turnover limit” i. 2 crore rupees, shal get the accounts audited by a Chartered Accountant (CA) oF a Cost and Manager Accountant (CMA). Registered person who is required get his accounts audited in accordance with section 35(3) shall submit electronically the Annual Return as per section, 44 along, with a copy of the audited statement of accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year. He shal Furnish a copy of audited annual accounts and, a reconciliation statement, duly certified, in Form GSTR-9C along with annual return. Here the term used is aggrugate tumaver and nor qurnover in state, Aggregate turnover is, ving same PAN. Therefore, is liable to gets his accounts audited then all the registration obtained under audit. tered py under section 3 same PAN will aso be liable to G 2.GST Audit by tax authorities u/s 65, “The Commissioner or any officer authorised by him, may undertake aut of any registered person for such period, at such frequency and in such manner as may be preseribed in a general or a specific onler (Section 65 of CGST Act). The officers may conduct audit at the place of business of the tered person oF in theie office. The registered person shall be informed by way of a notice of not less than fifteen working days before the conduct of audit in Form GST ADI-OL. As per Section 65(8) , audit of registered person shall be completed within theee months from the date of commencement of audit. Further, if the Commis s satisfied that audit of the registered person can't be completed within three months , he may extend ¢ Period for a further period not execeding six months after recording the reasons for doing so in writing, ‘The proper officer will inform the final findings of his audit to the registered petson in form ADT-02:The finding under GST audit may be used by proper officer to initiate action u/s 73 or74. 3. Speci: yartment During if at any stage of serutiny, inquiry, investigation or any other proccedings, any officer not below the rank of Assistant Commissioner, is of the opinion that = the value has not been correctly declared oF * the credit availed is not within the normal limits, “The Assessing Authority may, with the prior approval of the Commissioner, direct such registered person to get his, records including books of account examined and audited by a Chartered Accountant or a cost accountant as may be nominated by the Commissioner. The officer will issue direction in Form GST ADT-03 to the registered person in this regard. The Chartered Accountant or Cost Accountant so nominated shall submit a report of such audit duly signed and certified by him to the said Assistant Commissioner, within the period of ninety days, which can bbe further extended by ninety days. As per Section 66(3) of the ace the special Audit may be direeted even if accounts, and record of the registered persons are audited under any other law in force such such as’The Company Act 2013 00 the Income ‘Tax Act 1961. ‘The registered person shall be given an opportunity of being heard where any material gathered on the basis of special audit under this act is Proposed to be used against him in any proceeding, under the act. All expenses spent in conneetion with Special Audit including remuneration of Auditors to be determined and paid by commissioner as per Section 663) of the Act. All registered person shall be informed about the audit finding in Form GST ADIE-O$ after the concluded. As per Section G6( G) of the Act, discrepancy in terms of tax not paid, tax short paid or jnput tax eredit wrongly availed, the offieer, may proceed to initiate action under section 73 and 74 of the act