General Procedure of Business Audit Under Maharashtra VAT Act
General Procedure of Business Audit Under Maharashtra VAT Act
Every dealer/manufacturer registered under Maharashtra Value Added Tax Act, 2002 have to face the
Business Audit. Sales Tax Department has recently vide their Circular No. 25T of 2008, dated.
23.07.2008 clarified the general procedure for Business audit as below:
02 Procedure of Audit:
The audit is carried out at the place of the dealer by the officers working in the Business Audit
Divisions. The cases for audit are selected by the Business Audit Criteria Committee on the basis of
certain criteria. Normally, the audit is carried out with prior information of the date to the dealer, unless
there is deliberate decision to conduct surprise audit.
03 Scope of Audit:
i) The audit officer will ascertain the correctness of returns filed by the dealer, both under MVAT Act
and CST Act. Obviously, the audit officer will verify the books of accounts maintained by the dealer
along with sale bills, purchase bills, sales journals, purchase journals, ledger, cash book, delivery
challans, dispatch proofs, bank statements, etc. to ascertain the correctness of turnover returned and also
the correctness of claims made through returns.
The audit officer may also ask for agreements, purchase orders, work orders, tender documents
etc.
ii) The audit officer is expressly authorised to make enquiry as to whether the dealer
has filed returns and made payments under other allied laws, such as Profession
Tax Act, Luxury Tax Act., Income Tax / Excise laws.
iii) It will be the dealers’ responsibility to give correct and complete information during the course of an
interview conducted by the auditing officer and he shall ensure that all persons concerned with the
accounts, filing of returns, payment of taxes, sales, purchase, production and other business activities are
available with information sought by the audit officer.
iv) In discharging the function of audit, wherever required, the audit officer can use all the powers of a
Civil Court for the purposes of proof of facts by affidavit, summoning and enforcing the attendance of
any person and examining on oath of affirmation, compelling production of documents etc.
These powers would be utilized by the audit officer only in circumstances where use of such powers
becomes necessary for achieving the purpose of audit.
v) The audit officer is also authorised to take physical stock of goods and ask for clarification if there is
any variation.
In addition, the audit officer is also authorised to count cash and bank balance and to ask for
reconciliation thereof.
The dealer shall furnish self-certified copies of documents and statements as required by the audit
officer.
vi) Even
if the audit is on a particular issue or for a shorter period, the audit officer
can make enquires as regards other periods or other issues.
04 Powers of the Audit Officer:
If any discrepancy is noticed in the process of audit, he has to communicate his observations to the
dealer. The communication to dealer is expected to be unambiguous and clear in its import. If the audit
observations / objections are acceptable to the dealer then after compliance by the dealer the process of
audit would stand concluded. The corrective action could be filing of revised returns and making
payment of differential dues, if any, including interest.
05 Duties of Dealer:
As expressly mentioned in Section 22 read with section 2 (18), 63 (4), 64, the dealer under audit has to
afford necessary facility to auditor to inspect books of accounts. The dealer shall give unhindered access
to his books of accounts and / or to computerized books of accounts. The audit process can be hastened
only if the dealer keeps his books of accounts, bills and all relevant documents at the place of business.
The queries raised by audit officer are expected to be clarified with requisite evidence/documents then
and there only so that the issues are immediately resolved and the resolution of issues is not kept
pending. Legal issues having financial implications, of course, could be resolved on a later date. The
dealer shall also furnish the E-mail addresses and contact numbers of his vendors/ vendees.
It is a new concept introduced in VAT regime. It is introduced on the western lines so that
there should be check on the assessee and the result expected to be is proper tax
compliance by the dealers. The random audit of few assessees is considered essential for
1. With a view to promote compliance with the provisions of this Act, the Commissioner
may arrange for Audit of the Business of any Registered Dealer, for the purpose of this
section. The selection of the dealer for audit shall be made amongst the dealers –
c. Where the Commissioner is not prima facie satisfied with the correctness of any return
filed by a dealer or is not satisfied with any claim made, deduction claimed or Dnyanesh
d. Who are selected by the Commissioner on the basis of the application of any criteria or
e. Where the Commissioner has reason to believe that detailed scrutiny of the case is
necessary
2) Deleted
3) On or after the appointed day any officer to whom the powers and duties under this
4) Deleted
5) (a) During the course of the audit, the officer may require the dealer
(i) to afford him the necessary facility to inspect such books of account or other
(ii) To afford him the necessary facility to check or verify the cash or stock which may be
found therein
(iii) To furnish such information as he may require as to any matter which may be useful
(b) The officer conducting the audit shall on no account remove or cause to be removed
6) Deleted
7) Deleted.
8) Deleted.
The beginning words of the section itself speak the volume of authority and power
What is the meaning of Promoting compliance with the provisions of this Act?
in the MVAT Act, 2002. Not only Act, but Rules, Notifications issued by the Government
from time to time and compliances with it, and further circulars issued by the
Commissioner of Sales Tax for the purpose of the Act or rules and notifications and its
The minimum compliances as required by the MVAT Act, 2002 and MVAT Rules 2005 can
1. To obtain the Registration Certificate by the dealers who are exceeding the minimum
threshold limit as prescribed by the Act; i.e., say Rs.1 lakh for the importer or Rs. 5 lakh
for others. Those prospective dealers who wish to do business can even obtain
entity/person as a dealer even though the minimum threshold limit is not achieved.
The return should not only be correct and arithmetically accurate but they are expected
change in name and style of business, change in activity etc. These types and other
changes as described in the Act are required to be intimated to the department within 30
or 60 days or within such time as may be prescribed, within occurrence of such event/
incidence. If time to intimate such change in the business is not prescribed in the Act or
4. To pay due taxes in time in the proper forms of return; i.e., 231, 232, ..., if taxes are
paid late after the due date prescribed for the same by the Government then interest is
automatically attracted which is required to be admitted in the returns filed for the said
period and paid by the dealer. If not paid with returns or thereafter before initiation of
5. Correct disclosure of GTO (S) and GTO (P) with set-off claim and any other deductions,
discounts, etc. as per law. The turnover of sales and purchases should be correctly
reported as per books of account and records. The various deductions such as goods
returns, trade discounts, rate variations, any other special discount or deduction which is
likely to change the GTO of Sales/GTO of purchases should be properly and timely
disclosed in the returns filed for the respective periods. The set off or input tax credit is
linked to purchases hence they should be carefully reported with due precaution.
6. Proper filing of return under The CST Act, 1956, compatible to M.V.A.T. returns, etc.
7. Timely response to every notice or any other communication from the departmental
authority. The departmental authorities may issue various notices or queries related to
dealer’s business activity or issues related to that under MVAT Act or Rules made
8. Keeping all books of account and records at place of business, which should be
available for verification at any time by the departmental authority. This includes not only
sales, purchase ledger and sales, purchase invoices but also includes all relevant records
directly linked or indirectly linked to the business activity of the dealer. The concerned
officer may call for such records for verification which he may feel to be necessary and
that Turnover of Sales/ Purchases, tax levy, its collection, payments, set-off can be
account are not legible or properly maintained by the dealer the concerned
assessing/audit officer can direct the dealer to maintain the records in a particular style
10 Audit Report u/s.61 of MVAT Act, 2002 – whether submitted by the dealer or not. The
months of the financial year end to the Sales Tax department. Dealer should follow the
the Act. It may be levied @ one-tenth per cent of the sales turnover.
11 Registration with the department for e-services; It is made mandatory for all dealers
Thus, above types of important and several other compliances are expected to be fulfilled
dealer is required to perform under MVAT Act 2002 and Rules thereunder .They are
duties cast on the dealer and failure to do so may result into deprival
For the purposes of this section, the selection of dealers for audit shall be made from
The dealer has to file returns as per periodicity given in MVAT Rules. The
periodicity/frequency of filing the returns is linked to previous year’s tax liability (same
arrangement was there in the BST ACT 1959 and Rules there under) The different forms
of returns are prescribed for different types of dealers i.e. 231, 232, 233, 234 and 235.
There are different provisions for newly registered dealers and dealers under PSI. The
due dates are also different but whether the dealer is required to file monthly, quarterly
From February, 2008 BIG TAX PAYERS (LTU as they are known in VAT regime) were
directed to file e-returns, but now in last 12 months all dealers (monthly
returns filers, quarterly return filers, six monthly return filers etc.) are directed and
required to file e-returns as per provisions newly inserted in the MVAT Act and Rules. In
fact recently it is made mandatory to file the returns online. This means the physical filing
The non filers should be construed here as those dealers who have not filed returns by
the prescribed dates (late filers) and those dealers who are totally defaulters; i.e., who
have not filed returns at all for a particular period say for a particular month, quarter or
Thus assessee not filing returns within prescribed time can expect a notice for Business
Audit from the Sales Tax Department.Or The section further says that,
Refund may arise due to many reasons - i.e., Purchases Value in a month is higher than
Sales Value, the raw material is of higher tax rate than the finished goods, there is export
or interstate sales; section 5(a) etc. The dealers who have claimed refunds in the returns
filed for the said periods can be taken up for business audit or refund audit.
OR
c) Where the Commissioner is not prima facie satisfied with the correctness of any return
filed by a dealer or is not satisfied with, any claim made, deduction claimed or turnover
The officer may on apparent verification of a return or returns for a month or quarter,
year etc. and if he feels it necessary to take up a case for business audit due to any
doubt or due to any reason which requires him to ascertain facts and figures related to
business of the said dealer. There may be ‘n‘ number of reasons which may require and
or instigate a officer to take up a case for business audit or may invite attention of an
d) Who are selected by the Commissioner on the basis of the application of any criteria or
e) Where the Commissioner has reason to believe that detailed scrutiny of the case is
necessary,
Except this section there was nothing in the MVAT Act, 2002, Rules or Notifications issued
thereunder where the audit or business was discussed. The departmental officers were
however doing it as per instructions given to them. The assessees and the tax
professionals were not knowing the exact nature, process and purpose of the business
audit uptill October 2008, when Hon'ble Commissioner issued a Trade Circular discussing
the objects and scope of the Business Audit. Moreover assessment section is very much
provided in the MVAT Act, 2002 (section 23), which again created little confusion as to
Summary of Hon'ble Commissioner’s Circular on Business Audit (No. 25-T of 2008 dated
23-7-2008)
Objects
checked against the books of account and the circumstances of the business.
Procedure of Audit: cases are selected by business audit criteria committee on the basis
of certain criteria. Normally an audit is carried out with prior information of the date to
the dealer, unless there is a deliberate decision to conduct surprise audit. The officer is
authorized by JC. Penalty may be levied by the officer if information sought for is not
Scope of Audit
To make enquiry about tax payment and return filing in allied Acts; i.e., PT, luxury tax,
etc. depending upon facts the auditor may also ask for returns or any other information
carried out at the time of visit and dealer should ensure all relevant persons are present
at the time of visit of the officer. The object of interview is to know business and
accounting system.
3) Visiting officer enjoys powers of a civil court u/s 14 – may be utilized by officers
whenever necessity is felt to do so. (i.e., proof of facts by affidavit, summoning and
enforcing the attendance of any person and examining him on oath or affirmation,
4) The audit officer is authorized to take stock of goods and ask for clarification if there is
any variation. Also authorized to count cash and bank balance and to ask for
reconciliation if warranted. However should not remove any books or records or cash or
5) The audit officer may verify any records of any period and any issues in a financial
6) If dealer does not co-operate then audit officer can seek intervention of investigation
If any discrepancies are noticed in the process of audit either in returns, books of account
or otherwise then the audit officer has to communicate it to the dealer on the date of
audit or immediately thereafter, on compliance from dealer the audit would get over. The
corrective action could be filing of revised return and making payment of differential dues
if any including interest. In case dealer objecting for the observations then officer shall
Duties of dealer
The dealer to afford necessary facility to the auditor to inspect books of account. The
audit process can be fastened only if dealer keeps ready all the records. The queries
raised by audit officer are expected to be clarified with requisite documents and evidence
then only issues are solved. The dealer shall also furnish the e-mail addresses and
Dealer can ask for valid authorization of audit officer for carrying out audit. The dealer
may or may not accept audit observations communicated to him by audit officer. The
dealer under audit will have a right to know the result of audit within a reasonable period
of time. Normally audit process is expected to finish within 3 months provided dealer co-
operates fully. This time limit is not applicable if audit results in initiation of assessment
proceedings.
The audit is nothing but assessment at the dealer’s POB. But without any assessment
order passed by the officer. It is done with the previous intimation to the dealer. The
word used in the Act is Audit or ‘Business Audit‘ and not the "Audit of Accounts". What is
probably expected here is that the visiting officer by his visit to Dealer’s POB and after
verification of records, relevant books of account etc. and on the spot visit to POB can
make certain observations and study the business of the dealer, which can help officer to
cross check/verify with the returns filed by the dealer and he can ascertain whether
business activity is properly reflected in the returns filed for the said period or periods. In
previous BST Act a year was considered as a unit but in VAT regime a month or quarter is
presumed as a unit unlike a year, it is possible that few checks can be done on the spot
during the time of business audit at dealer’s place and proper tax compliance can be
achieved.
The visiting/assessing officer is probably expected to study the business of the dealer,
processes and practices adopted by the dealer and come to conclusions after verification
of records, if it is done say within reasonable time of the end of that period (month,
quarter) then it can be very effective from the point of view of the
of the business or the person in-charge of accounts and sales tax matters may reveal
some important clues which may not be directly and easily detected from books of
account of the dealer. It may ultimately result in more tax recovery or deny excess set
As per VAT concept each and every month of a financial year is considered as a separate
unit and therefore the officer may verify and inspect records of a particular month or a
As seen in last 3 years, the initial VAT years; i.e., F.Ys. 2005-06, 2006-07, 2007-2008
the Department is issuing notices for 2/3 year i.e. F.Ys. 2005-06, 2006-07 and thus it is
It is seen that an advance intimation of the officer’s visit for the audit purpose is issued
to the dealer who in turn can get it modified/changed from the officer in-
charge of the audit, which is nothing but a adjournment given to the dealers as per his
convenience.
The main difference between old Assessment System (under BST Act) and Business Audit
in VAT regime is that in old system of assessments/ verification of records was done at
Sales Tax Offices and assessment orders were issued/ passed after verification of records
place and order may not be passed, rather it is rarely passed and a intimation in Form
No. 07 is issued to the dealer. It is a formal communication issued by the officer to the
dealer where discrepancies are intimated to the dealer from his returns and books of
account which has impact on enhancing tax or reducing set off claim and dealer is
agreed on the so called discrepancies pointed out by the officer he can file the revised
return/ returns and discharge additional tax liability accordingly or can revise return and
If dealer disagrees he can explain the so called discrepancies and object for it then officer
can or may issue a formal notice for assessment in Form No. 301 under section 23 of the
MVAT Act, 2002 and may proceed to assess the dealer and then he can pass a formal
assessment order and raise dues according to his findings or may reduce refund
claim.When the matter is unacceptable to the dealer the officer has to issue assessment
Act, 2002 and may assess the dealer as per his findings. However it has been observed in
last 3 years that the officers are insisting for the revised returns only and are reluctant to
pass the assessment order. It is probably due to the ideal VAT system which expects
When officer comes to a dealer’s POB for Business Audit, the dealer shall offer all relevant
books of account and records to the visiting officer for inspection and verification. The
officer can demand regular books of accounts and all relevant records and evidences in
support of claims as per returns filed for the said period by the dealer.
The dealer should allow and co-operate visiting officer to check/verify the stock and cash
at the time of visit, To furnish any other useful and relevant information, required by the
officer.
However
The officer is not allowed to remove any books of account or records from the dealer’s
place.
Following books may be made available to the officer during visit :
(1) Purchases and Sales Registers (2) Ledger (3) Purchases, Sales Invoices (4) Other
relevant documents (5) Stock Register (6) Copies of returns filed (7)
The section 22 does not speak of anything about what the officer is supposed to do
during and after visit. It is described by the Hon'ble CST in the Trade Circular issued by
• Officer should pass order or issue proper written communication to the dealer as to
• If returns for a particular month/ quarter or period as the case may be are correct and
complete it should be clearly certified if not, then what are the differential dues which will
be likely to be raised or extra refund reduced or refund enhanced, should be clearly made
• If nothing is found worth mentioning which may result in extra tax than declared or
reduce refund compared to the returns filed then NIL order should be
passed.
• The dealer must be aware of officer’s conclusions after visit within a reasonable time
is status of his returns whether they are correct or wrong or need some
changes/modifications etc.
Rather it will not be wrong if we say that it is the right of the dealer to know the Audit
Results in writing.
sent to the dealer pointing out the discrepancies noticed by the visiting officer and dealer
is asked to answer it expecting that the dealer will file revised returns based on officer’s
findings.
VAT Audit and dealer
The dealer may not agree or differ in officer’s findings and officer may insist for additional
payment of tax due to one reason or the other, in this situation unless a order is passed
by the officer, the legal process remains incomplete. Further, the dealer also gets a
chance to plead his case at higher forums. There may be certain legal queries as to
interpretation of certain sections of law and its implication given in certain facts and
reason why section 23 of Assessment in M.V.A.T. Act, 2002 is provided in the Act
It will not be wrong to say that outcome of section 22 is finally indicated through section
However, it is noted that the Departmental Officers are not passing any orders but
insisting the dealers to revise the returns. The returns may be revised but as discussed
above if any matter is not easily acceptable to the dealer then it will not be proper to
insist for revised returns by the Departmental officer rather he should pass order and
provide opportunity to the dealer to contest the unacceptable issue at higher forum.
In the State level Advisory Committee meeting conducted by Hon'ble CST dated 22-1-
The query was raised at Service Cell meeting Mazgaon Mumbai. by Maratha Chamber of
1) The criteria for Business Audit is dynamic and centrally decided. The list of dealers for
quarter. In case of discrepancy, the audit of entire year will be carried out.
Thus the process of audit is based on risk profile of the dealers / commodities thereof.
(A Trade Circular is issued by the Commissioner of Sales Tax dated 23-7-2008 on the
Comments
From the above discussion one thing becomes very clear that the criteria for the Business
Audit is dynamic that is it may be kept changing. It is said to be based on risk profile of
dealers/ commodities and may not be declared by the Government in the initial phases of
authority for randomly selecting the cases for audit and to keep check on the dealers so
that the system should not be misutilised by the dealers or anybody. It is possible that
the Government or the Commissioner of Sales Tax may declare certain criterias for audit
The criteria may be like the various criteria declared from time to time by the
Commissioner of Sales Tax for the acceptance of returns in the BST Act,1959 regime
which is popularly known as Summary Assessments or the order under section 33(2) of
The section 22(1)(c)(d)(e) gives various options available to the departmental authorities
to take up a case for a business audit. The list given below may be the criteria for
selecting the cases for Business Audit according to me (excluding other class of
assessees).
1) The Dealers claiming 6(2) or High Seas Sales claims u/s 5(2) of the CST Act, 1956.
2 ) Dealers with export claims above a certain turnover limit say Rs. 5 crs in a year.
3) Dealers with import from out of country above say 3 crores p.a.
4) Dealers with set off claim above a certain limit say Rs. 10 lakhs in a year.
6) Dealers claiming tax free sales or job work above say 5 crores, in a year.
7) Dealers with tax throughput of Rs. 2 crores but paying tax very negligible say Rs.1
lakh in a year.
8) Dealers claiming major portion of their sales as exempted under the Act or dealers
claiming the exempted sales more than 50% of their sales turnover.
11) Dealers whose previous audit shows dues raised are more than 20% of the tax paid
with returns or whose refund is reduced by 20% of the claim as per returns.
12 ) The dealers with a track record of frequent ex parte or best judgments assessments
13) Dealers with a particular commodity as their main product say hotelier or liquor
14) Dealers with normal trend to show more purchases as compared to sales and thus
15) Dealers claiming stock transfer or branch transfer above Rs 3 crores in a year or
16) Dealers whose previous business audit has resulted in short payment of tax or excess
claim of set off or excess claim of refund by say 15% or more as compared to his filing of
returns for a particular year or month or a quarter the 15% or more difference is
17) Dealer filing irregular returns or there appears inconsistency in filing of returns or
there is sudden fall in the turnover or sudden rise in the turnover or same range of
19) Based on TIN Nos. cases may be taken up for business audit say even numbers or
odd numbers or number in multiples of 5, 10, etc. (last four digits of TIN may be
considered)
20) For Composition Dealers i.e., retailers some different types of criteria may be fixed
and the cases may be taken up for business audit may be once in 5/6 years.
21) References received from other sections of Sales Tax Department (Registration
Advisory Visit, Refund Audit etc.) and other Departments (Income Tax, Central
Following provision is a very imp. (it is a clause reserved by the Government), "The
Commissioner has reason to believe that detailed scrutiny of the case is necessary"
section (22)(1)(e )
interest of revenue to take up a assessee/dealer’s case for Business Audit and therefore a
discretionary power is provided to take up a case for Business Audit, that is reserved by
the Government and it will be any other case found necessary for audit in the interest of
revenue by the Commissioner for the reasons which may be disclosed or may not be
disclosed at all but still the case will also be a eligible and will be selected for business
audit. This clause is always essential to be inserted in any taxing statute so that a
democratic Government can keep proper check on its financial/revenue resources and
therefore obviously Government has to keep few discretionary powers in the hands of its
always try to plug any suspected, doubtful, probable revenue loss to the State
exchequer. This provision enables the Government to keep proper control on the
assessees. The reasons for the same may not be disclosed at all to the assessee.
The reason to believe is very wide and exhaustive term and can be applied to any
necessary power conferred on the Administrative Authority but only thing that is essential
while using such a discretionary authority that it shall not be used arbitrarily and without
any reason.
The criterias given above are only indicators and a attempt to discuss possibilities. These
probabilities may be changed from year to year or from period to period. They are not
applicable to LTU. Once a dealer is identified as a LTU he is eligible for business audit at
This is again a new Class of dealers identified in VAT Regime. They are privileged class of
big tax payers whose annual tax payment is above Rs. 1 crore per year. These cases will
be audited every year. All services that is Amendments in RC, various Declarations under
CST Act, Refund claims, Business Audits, etc. will be done at a particular place and only
by a single officer will handle the case like pre VAT Period.
Refund Audit
This is done by different section as the name indicates it is carried in cases where
activity as was done previously in BST regime. It is done only when refunds are claimed
as per returns filed and dealer filed Form No. 501 to the respective section. However it
may be noted that it is done under a different section (51) and the business audit and
refund audit are not necessarily mutually exclusive. The refund audit is only limited to
As discussed above the criteria are not disclosed by the department during initial years of
Sales Tax (VAT-3) who selects the cases for business audit based on various methods
/criteria fixed by them. The Additional Commissioner of Sales Tax (VAT 3) will be
responsible for policy matters related to Business Audit and he generates general audit
cases for Mumbai as well as mofussil areas - Subsequently it will be done through
computerized process and it will be directed to all offices including mofussil areas to
select cases as per the direction given. At local level other than Mumbai region the Joint
Commissioner can select other cases considering local issues and risk commodities for
audit purpose however he has to seek approval from Additional Commissioner VAT-3. The
specific cases may be selected based on information received as to evasion or any other
deficiencies noticed. It is expected that each case will get audited at least once in five
As the name indicates under a self assessment system a tax-payer is responsible for
determining his own tax liability including accuracy and timely reporting and payment of
his tax. Self assessment places more responsibility on the tax-payers. There is no regular
intervention by the departmental officer at each time to check that the return filed is
correct or not. The returns can be submitted to bank or to the department or through
Accuracy of return forms is checked and notices are issued (defect notice) to the dealer.
The dealer is expected to comply the same within prescribed time. If the
dealer/assessee fails to comply the notice then it is presumed that the dealer has not
filed the return/returns and he is presumed to be a defaulter for that specific period.
The benefit of self assessment system is that tax officials need to spend less time on
routine work and hence can devote more time in more productive activities like survey,
Under this section a self assessed case may be reopened subsequently if found necessary
2) It may be for a F.Y. or years, may be for a month or quarter. Currently it is done for
full F.Y.
3) It may be taken up only to ascertain and or verify certain claims, issues as per returns
will never be disclosed to the dealer and it may be through COMPUTER generated
systems /Mahavikas.
5) The assessment order will not be passed or it will be passed very sparingly after
properly issuing notice under section 23 for the purpose of assessment but dealer is
asked to file return or revised return as the case may be based on observations/findings
of the officer.
I feel that this type of audit provision or provision with little modifications will be likely to
be there even under GST regime which is expected to roll out in next F.Y. 2010-11. This
type of provision will be always provided in taxation because the check on assesses is not
possible unless such type of provision is provided in the Acts. No doubt the frequency of
audit may be reduced. However, the problem in GST will be that both authorities one
under Central GST and another under State GST may verify the dealer’s records and the
dealer will be required to comply with both legislations and, rules, notifications in this
regard. The addition of services with goods will give rise to many issues like accounting of
lease transactions, luxury services (hotels etc.) works contracting, and ITC/set off issues,
etc. The number of dealers will go up substantially in GST regime resulting into less
frequent business audits of a dealer during a particular span of time. The IGST which
seems to be a substitute for current CST will be again a common statute for both
authorities under the CGST and SGST. The transition phase from VAT to GST will be a