Thread by @harshit1810

🧵Demystifying GST Audits: Section 65 & Rule 101. Understanding Both Sides of the Audit Journey! 💼🔍
Read this thread to gain a complete understanding of GST audits, covering Section 65 and Rule 101.
#GST #TaxAudit #DemystifyingAudits

🔸The Commissioner or any officer authorized by him, may undertake audit of any registered person for a financial year or part thereof or multiples thereof at such frequency and in such manner as may be prescribed

🔸The officers referred above may conduct audit at the place of business of the registered person or in their office

🔸The registered person shall be informed by way of a notice in FORM GST ADT-01 not less than 15 working days prior to the conduct of audit in such manner as may be prescribed

🔸 The proper officer authorised to conduct audit of the records and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the following and record the observations in audit notes :

👉documents on the basis of which the books of account are maintained
👉 the returns & statements furnished
👉 the correctness of the turnover
👉 exemptions claimed
👉 the rate of tax applied
👉 the ITC availed & utilised,
👉refund claimed,
👉and other relevant issues

🔸 During the course of audit, the authorised officer may require the registered person,
👉 To afford him the necessary facility to verify the books of account or other required documents
👉To furnish required information & render assistance for timely completion of the audit.

🔸The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and the said person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply furnished

🔸Audits under Section 65 should be completed within three months from the audit commencement date. The Commissioner may extend this period by up to six months with written reasons

🔸The "commencement of audit" refers to: -
👉Date when requested records are made available by registered person, or
👉Actual start of the audit at the place of business
whichever is later

🔸·On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings in FORM GST ADT-02

🔸Where the audit conducted 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.

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