GST

GOODS AND SERVICE TAX

For - BBA/B.COM (H)

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 Course Contents:

UNIT-II UNIT-III
UNIT-I
• Assessment of Tax • Demand & Recovery
GST In India- • Tax Invoice • Inspection
• Provisions of Indirect • Search, Seizure &
• Credit & Debit Note
Tax • Accounts & Records Arrest
• Basic Concept of • Advance Ruling
• Input Tax Credit
Supply • Place & Time of • Appeal & Revisions
• Composite & Mix
Supply
Supplies • Valuation & UNIT- IV
• Services under GST
Exemption • Audit
•Levy & Charges of GST
• Job Work • Offences & Penalties
•Procedure of
• Refund
Registration
UNIT- III • Activities Neither
• Person & Taxable
Supply of Goods nor
Person • Return & Due Dates Services (Schedule III)
• Payment of Tax
• TCS • Role of GST
Practitioner
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 AUDIT UNDER GST

Introduction

Sec 2(13) of the CGST Act,2017

Audit means the examination of records, return and other documents maintained
or furnished by the registered person.

Audit for the time being in force to verify the correctness of turnover declared,
taxes paid refund claimed and Input tax credit availed, and to assess his compliance
with the provisions of this act or the rule made there under.

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AUDIT UNDER GST

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 AUDIT UNDER GST

Types of Audit

Three types of Audit are prescribed in the GST Act. These are:

Audit by Chartered Accountant or a Cost Accountant :

Every person who is registered under GST and whose turnover exceed the
prescribed limit as in rule 80(3) of Rs.2 crores shall get his accounts audited by a
Chartered Accountant [sec. 35(5)]

Audit by Tax Authorities :

The commissioner or any officer authorized by him in term of sec. 65 of CGST
Act. 2017 by general or specific order may conduct audit of any registered person

Special Audit :
If at any stage of scrutiny, inquiry, investigation or any other proceeding,
if department is of the opinion that the value has not been correctly declared or
Credit availed is not within normal limit, department may order special audit by
chartered accountant or cost accountant nominated by department [sec. 66]
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 AUDIT UNDER GST

Audit by Chartered Accountant or a Cost Accountant :

Every person whose turnover during the financial year exceeds the
prescribed limit of Rs.2 crores shall get his accounts audited by a
Chartered Accountant

Every registered person, for facilitating the audit, shall keep and maintain his
Accounts to show the correct value in regard to :

 Production or manufacture of goods

Inwards supply of goods or services or both;
Stock of Goods
Input Tax Credit availed
Output tax payment & Paid
Books of Accounts

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 AUDIT UNDER GST

Audit by Tax Authorities [65] :

I. Who have the power to undertake audit of any Registered Person [65(1)] :
Commissioner or any officer authorities by him, can undertake audit of any
registered person for such period, at such frequency and in such manner
as may be prescribed.

II. Opinion to conduct audit [66(2)] :

The officer referred to in sub-section (1) may conduct audit at the place of
Business of the registered person or in their office.

III. Prior Intimation before conducting audit [65(3)] :

The registered person shall be
informed by way of a notice not less than fifteen working days prior to the
conduct of audit in such manner ass may be prescribed.

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 AUDIT UNDER GST

Audit by Tax Authorities [65] :

IV. Time period to complete audit [65(4)] :

The audit under sub-section (1) shall be completed within a period of three
month from the date of commencement of the audit.
The commissioner may extend further three month.

V. Duty of Registered person to provide necessary document / facility to auditor

[65(5)]
During the course of audit, the authorities officer may require the registered
person-

(a). To afford him the necessary facility to verify the books of accounts or
other documents as he may require
(b). To furnish such information as he may require and render assistance for
Timely completion of the audit.
BRIJESH KUMAR 8
 AUDIT UNDER GST

Audit by Tax Authorities [65] :

VI. Communication about details of audit [65(6)] :

On conclusion of audit, the proper officer shall, within thirty days, inform the
Registered person, whose records are audited, about the finding, his right &
Obligation and reasons for such findings.

VII. Intimation of wrong filing of Tax [65(7)] :

Where the audit conducted under sub-section(1) result in detection of tax

not paid or short paid or erroneously refunded, or input tax audit wrongly
availed or utilized, the proper officer may initiate action u/s 73 or section 74.

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 AUDIT UNDER GST

SPECIAL AUDIT [66]

The law provides that special audit under section 66 may be directed irrespective
Of any other Audit have been conducted under any other provisions of this Act or
Any other law for the time being in force or otherwise.

Example-1
If an audit has been conducted by tax authorities u/s 65 of the GST act, special
Audit u/s 66 can still be directed irrespective of any Audit covered under any
Provisions of this Act or under any Act. The Audit of accounts under any other
Provision or law will not have any relevance in conduct of special audit.

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 AUDIT UNDER GST

SPECIAL AUDIT [66]

Example-2
Suppose Tax Audit of a company u/s 44AB of the IT Act. 1961 was concluded.
But if Assistant/ Deputy Commissioner during the course of scrutiny or
Investigation comes across any doubt regarding the nature and complexity of the
Case in respect to the Interest of revenue, then also irrespective of any Audit
Covered under any provisions of this Act or under any act, Special Audit u/s 66
Of the CGST Act can be directed.

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 DIFFERENCE BETWEEN SECTION 65 AND SECTION 66
Components Section 65
General Audit
Nature of Audit In this section, we have a
departmental audit.
Conducted by It is conducted by officers
of the department
authorities by the
commissioner.
Prior Notice Prior notice of 15 days is
required.
Time for The conclusion of the
conclusion of audit is given in 3 month,
the audit further extension of 6
month is allowed.
Audit finding/ Audit report should be
report intimated soon upon
completion of the audit
Section 66
Special Audit
In this section, we have a
special audit.
It is conducted by chartered
accountant/ cost accountant
nominated by the
commissioner.
Such notice/ intimation is
not required.
The conclusion of the audit is
given in 90 days, further
extension of 90 days is
allowed.
Audit report should be
shown to deputy/ assistant
commissioner.
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