Category: Audit under GST

1. In Law Lexicon Dictionary, ‘seizure’, is defined as the act of taking possession of property by an officer under legal process.
2. It generally implies taking possession forcibly contrary to the wishes of the owner of the property or who has the possession and who was unwilling to part with the possession.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -INSPECTION, SEARCH, SEIZURE AND ARREST  : FAQ NO.3)

Where the special audit conducted under Section 66(1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under Section 73 or 74, as the case may be.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 14)

The expenses of, and incidental to, the examination and special audit of records under Section 66(1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and that such determination shall be final.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 13)

The provision of Section 66(1) 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.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 12)

1. The Chartered Accountant or Cost Accountant nominated to conduct the audit under Section 66, shall submit a report, within a period of 90 days from the date of communication in writing by an officer not below the rank of Assistant Commissioner to get the audit of records of such registered person.
2. The said period of ninety days can be extended by another period of 90 days on an application made in this behalf by registered person or the Chartered Accountant or Cost Accountant or for material and sufficient reason.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 11)

No, only Chartered Accountant or a Cost Accountant as may be nominated by the Commissioner in this behalf will be authorized to conduct audit under Section 66.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 10)

An officer not below the rank of Assistant Commissioner may, with the prior approval of the Commissioner, shall issue a direction in FORM GST ADT-03 to such registered person.to get his records including books of account examined and audited by a Chartered Accountant or a Cost Accountant specified in the said direction.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 9)

No, special audit can only be initiated during the process of scrutiny, enquiry, investigation and not after completion of the same.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 8)

Special audit can be directed if at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, with the prior approval of Commissioner.

(ICAI FAQ PUBLICATIONS : – 06-09-2017 -SPECIAL AUDIT : FAQ NO. 7)

Where the audit u/s 65(1) results in detection of tax not paid or short paid or
erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under Section 73 or Section 74.

(ICAI FAQ PUBLICATIONS : -06-09-2017 AUDIT BY TAX AUTHORITIES : FAQ NO. 6)