GST Special Audit India | Limit Checklist & File Format |

Check out the detailed explanation on GST Audit and also the concept and provisions of Special Audit File Format under GST Law. Generally, a Commissioner has authorisation to approve a GST Audit. In our previous Article, we have clearly explained GST Migration Process and also Capital Goods under GST. The Time limit to complete regular GST and Audit and Special Audit is the same.

Who Can Audit under GST

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 the business transactions
  • of any taxable person for such period,
  • The frequency of audit to be defined by the Commissioner of CGST or SGST or any authorised persons authorised by the Commissioner of CGST/ SGST.

The tax authorities may conduct audit at the place of business of the taxable person.

Information to Taxable Person Prior to GST Audit:

The taxable person shall be informed, by way of a notice, sufficiently in advance, not less than 15 working days, and prior to the conduct of audit.

Time Period for GST Audit:

The audit under GST will be carried out by the Tax Authorities in the prescribed manner and will be completed within the given time i.e. within a period of three months from the date of commencement of audit.

If the Tax Authorities believes that the audit in respect of such taxable persons cannot be completed within the given times i.e. within 3 months from the date of commencement of Audit, then it can be extend the period by a further period not exceeding 6 months. Here for the extension of Audit period, the reasons to be documented and recorded in writing.

Here ‘commencement of audit’ means the date on which the records and other documents, called for by the tax authorities, are made available by the taxable person or the actual institution of audit at the place of business, whichever is later.

During the course of audit, the authorised officer may require the taxable person,

  1. 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,
  2. to furnish such information as he may require and render assistance for timely completion of the audit.

GST Audit Findings and Way Forward under Audit:

On conclusion of audit, the proper officer shall without delay inform the taxable person, whose records are audited, of the findings, the taxable person’s rights and obligations and the reasons for the findings.

Where the audit conducted results in detection of tax not paid or short paid or erroneously refunded, or input tax credit erroneously availed, the proper officer may initiate further action under section 51.

GST- SPECIAL AUDIT

Who can do the GST Special Audit ?

If at any stage of scrutiny, enquiry, investigation or any other proceedings before him,

  • any officer not below the rank of Deputy/Assistant Commissioner
  • having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that
  • the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner,
  • direct such taxable person by notice in writing
  • 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 in this behalf.

Time Period of GST Special Audit:

The Chartered Accountant or Cost accountant as nominated by the Commissioner, within the period of 90 days, submit a report of such audit duly signed and certified by him including the other details to the said Deputy/Assistant Commissioner.

The proper officer may, on an application made to him in this behalf by the taxable person or the Chartered Accountant or Cost Accountant nominated by the Commissioner or for any material and sufficient reason, extend the period by another 90 days.

Other Provisions under GST Special Audit:

The provision of Special Audit shall have effect notwithstanding that the accounts of the taxable person have been audited under any other provision of this Act or any other law for the time being in force or otherwise.

The taxable person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit which is proposed to be used in any proceedings under this Act or rules made there under.

Expenses and Remuneration of Auditor under GST Special Audit:

The expenses of, and incidental to, the examination and audit of records including the remuneration of such Chartered Accountant or Cost Accountant, shall be determined and paid by the Commissioner.

Audit Findings and Way Forward under GST Special Audit:

Where the special audit conducted results in detection of tax not paid or short paid or erroneously refunded, or input tax credit erroneously availed, the proper officer may initiate action under section 51.