Special Audit in GST

GST (GOODS AND SERVICES TAX)
Special Audit in GST
Introduction period, at such frequency and in such manner as may

be prescribed.
GST is a trust based taxation regime wherein the
assessee is required to self-assess his returns and The third type of audit is called the Special Audit. In
determine tax liability without any intervention by Special Audit the registered person can be directed
the tax official.Therefore a tax regime that relies on to get his records including books of account
self-assessment has to put in place a robust audit examined and audited by a chartered accountant or a
mechanism to measure and ensure compliance of the cost accountant during any stage of scrutiny, inquiry,
provisions of law by the taxable person. investigation or any other proceedings;depending
upon the complexity of the case.
“Audit” has been defined in section 2(13) of the CGST
Act, 2017 and it means the examination of records, Procedure
returns and other documents maintained or furnished
by the registered person under the GST Acts or the • During the scrutiny, inquiry, investigation or any
rules made there under or under any other law for other proceedings of a registered person, the
the time being in force to verify the correctness of Assistant Commissioner or any officer senior to
turnover declared, taxes paid, refund claimed and him, having regard to the nature and complexity of
input tax credit availed, and toassess his compliance the case and the interest of revenue, might be of
with the provisions of the GST Acts or the rules made the opinion that the value has not been correctly
thereunder. declared or the credit availed is not within the
normal limits.
Types of Audit
• In such cases, with the prior approval of the
GST envisages three types of Audit. The first audit Commissioner, the Assistant Commissioner or
is by a chartered accountant or a cost accountant. any officer senior to him can directthe registered
Every registered person whose aggregate turnover person in FORM GST ADT-03 to get his records
during a financial year exceeds two crore rupees has including books of account examined and
to get his accounts audited by a chartered accountant audited by a specified chartered accountant or
or a cost accountant and furnish a copy of audited a cost accountant. The chartered accountant
annual accounts and a reconciliation statement, duly or a cost accountantwill benominated by the
certified, in FORM GSTR-9C. Commissioner.
In the second type which is the normal audit, the • The chartered accountant or cost accountant so
Commissioner or any officer authorised by him, can nominated has to submit a report of such audit
undertake audit of any registered person for such within the period of ninety days, duly signed and
certified by him to the Assistant Commissioner.
Directorate General of Taxpayer Services

CENTRAL BOARD OF EXCISE & CUSTOMS
www.cbec.gov.in
GST (GOODS AND SERVICES TAX)
Special Audit in GST
• On an application made by the registered person

or the chartered accountant or cost accountant or Special Audit
in GST
for any material and sufficient reason, the Assistant
Commissioner can extend the said period by a
further period of ninety days.
• The provisions of special audit shall have effect even

if the accounts of the registered person have been
audited under any other provisions of the GST Act or
any other law for the time being in force.
• The registered person shall be given an opportunity

of being heard in respect of any material gathered
on the basis of special audit and which is proposed
to be used in any proceedings against him under this
Act or the rules made thereunder.
• The expenses of the examination and audit of

records, including the remuneration of such
chartered accountant or cost accountant, shall be
determined and paid by the Commissioner.
• On conclusion of the special audit, the registered

person shall be informed of the findings of the
special audit in FORM GST ADT-04.
• Where the special audit results in detection of tax

not paid or short paid or erroneously refunded,
or input tax credit wrongly availed or utilised, the
process of demand and recovery will be initiated
against the registered person.
Conclusion
Special audit provides a lawful and legal way for the

GST officers to take the assistance of a chartered
accountant or cost accountant to determine tax
liabilities in complex cases. The professional expertise
of a chartered accountant or cost accountant will be
of great significance in ensuring that theinterest of
revenue is safeguarded at all times.
Prepared by: National Academy of Customs, Indirect Taxes & Narcotics
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GST (GOODS AND SERVICES TAX)

Special Audit in GST

Introduction period, at such frequency and in such manner as may

Directorate General of Taxpayer Services

• On an application made by the registered person

• The provisions of special audit shall have effect even

• The registered person shall be given an opportunity

• The expenses of the examination and audit of

• On conclusion of the special audit, the registered

• Where the special audit results in detection of tax

Special audit provides a lawful and legal way for the

Prepared by: National Academy of Customs, Indirect Taxes & Narcotics

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