GST Special Audit section 66 of the CGST Act

The GST (Goods and Services tax) registered person are often directed to get his record and document including books of account examined and audited by a Chartered Accountants or a Cost Accountants during any stage of scrutiny, examination, inquiry, investigation or the other proceedings, depending upon the complexity of the case.

SPECIAL AUDIT SECTION 66 OF THE CGST ACT

The law provides that Special audit under section 66 of the GST Act. may be directed irrespective of any other audit have been conducted under any other provision of this Act or any other law for the present in force or otherwise.

EXAMPLE

• If an audit has been conducted by tax authorities under section 65 of The GST act, special audit under section 66 can still be directed irrespective of any Audit covered under any provisions of this Act or under any Act. The audit of accounts under any other provision or law will not have any relevance in conduct of special audit.

• Suppose Tax Audit of a Company u/s 44AB of the Income Tax Act, 1961 was concluded. But if Assistant / Deputy Commissioner during the course of scrutiny or investigation comes across any doubt regarding the nature and complexity of the case in respect to the Interest of Revenue, then also irrespective of any Audit covered under any provisions of this Act or under any Act, Special Audit u/s 66 of the CGST Act can be directed.

Difference between Section 65 and Section 66:

PROCEDURE

During the scrutiny, inquiry, investigation, examination or the other proceedings of a GST registered person, the Assistant Commissioner or any other officer senior to him, having relation to the nature and complexity of the case and also the interest of revenue, could be of the opinion that the value has not been correctly declared or the credit availed isn't within the normal limits.

In such cases, with the prior approval of the Commissioner and with the prior approval of the Assistant Commissioner or any other officer senior to him can direct the GST registered person in FORM GST ADT-03 to induce his records or document including books of account examined and audited by a specified Chartered accountant or a Cost accountant. The Chartered Accountant or Cost Accountant will be nominated by the Commissioner.

The Chartered Accountant or Cost Accountant so nominated has got to submit a report of such audit within the period of ninety days, duly signed and authorized by him to the Assistant Commissioner.

On an application made by the GST registered person or the Chartered Accountant or Cost Accountant or 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 although the accounts of the GST registered person are audited under any other provisions of the GST Act or any other law for the time being in force.

The GST registered person shall be given a chance of being heard in respect of any material gathered on the premise of special audit and which is proposed to be used in any proceedings against him under this Act or the principles made thereunder.

The expenses of the examination, audit of records and audit of all documents, including the remuneration of such Chartered Accountant or Cost Accountant, shall be determined and paid by the Commissioner or Assistant Commissioner.

On conclusion of the special audit, the GST registered person shall be informed of the finding of the special audit in FORM GST ADT-04.

Where the special audit leads to detection of tax evasion not paid or short paid or erroneously refunded, or input tax credit (ITC) wrongly availed or utilised, the process of demand and recovery will be initiated against the GST registered person.