What is the period of audit prescribed under Rule 101 of the CGST Rules, 2017?

Under Rule 101(1), the period of audit under section 65(1) shall be a financial year or part thereof or multiples thereof.

Which form is used to give notice of audit under Rule 101 of the CGST Rules, 2017?

The proper officer issues a notice in FORM GST ADT-01 in accordance with section 65(3).

What aspects may be verified by the proper officer during audit under Rule 101?

The proper officer may verify the documents on which books are maintained, returns and statements, correctness of turnover, exemptions and deductions, rate of tax, input tax credit availed and utilised, refund claimed and other relevant issues.

How are the findings of audit communicated under Rule 101 of the CGST Rules, 2017?

On conclusion of the audit, the proper officer informs the findings to the registered person in FORM GST ADT-02 in accordance with section 65(6).

CGST Rule 101 of Central Goods and Services Tax Rules, 2017 – Audit

The Central Goods and Services Tax Act, 2017

The Central Goods and Services Tax Rules, 2017

Chapter-XI Assessment and Audit

Rule 101: Audit.

101. (1) The period of audit to be conducted under sub-section (1) of section 65 shall be a financial year ¹[or part thereof] or multiples thereof.

(2) Where it is decided to undertake the audit of a registered person in accordance with the provisions of section 65, the proper officer^c1 shall issue a notice in FORM GST ADT-01 in accordance with the provisions of sub-section (3) of the said section.

(3) The proper officer^c1 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 documents on the basis of which the books of account are maintained and the returns and statements furnished under the provisions of the Act and the rules made thereunder, the correctness of the turnover, exemptions and deductions claimed, the rate of tax applied in respect of the supply of goods or services or both, the input tax credit availed and utilised, refund claimed, and other relevant issues and record the observations in his audit notes.

(4) The proper officer^c1 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^c1 shall finalise the findings of the audit after due consideration of the reply furnished.

(5) On conclusion of the audit, the proper officer^c1 shall inform the findings of audit to the registered person in accordance with the provisions of sub-section (6) of section 65 in FORM GST ADT-02.

References

Enforcement:

Enforced w.e.f. July 01, 2017 [Notification No. G.S.R. 663(E) dated 28.06.2017].

Amendments:

1. Inserted by Central Goods and Services Tax (Fourteenth Amendment) Rules, 2018 vide Notification No. 74/2018-Central Tax dated 31st December, 2018, w.e.f. 31.12.2018.

Circulars:

c1. Proper officer relating to provisions other than Registration and Composition, refer Circular No. 3/3/2017-GST dated 05.07.2017.