New
Published on:
February 25, 2023
By
Harshini

CGST Rules: Chapter 11 – Assessment and Audit

As per the CGST Act, every registered taxpayer needs to comply with the assessment and audit procedures. Under CGST Rules, the procedures for assessment and audit are explained in detail in Chapter 11. In this article, we will discuss Chapter 11 of CGST Rules and the provisions for special audit under the Act.

Assessment under CGST Rules

Assessment is a process through which the tax authorities evaluate the information and records provided by the taxpayers to determine their tax liability. As per CGST Rules, there are three types of assessments:

Self-Assessment: In this type of assessment, the taxpayer himself assesses the tax liability and files the return.

Suo Moto Assessment: When the taxpayer fails to file the return, or if the tax authority has reasons to believe that the taxpayer has not filed the return, the authority can conduct a Suo Moto assessment.

Provisional Assessment: When the tax authority is of the opinion that the tax liability cannot be determined accurately, it may conduct a provisional assessment.

Audit under CGST Rules

Audit is a process through which the tax authorities verify the records and information provided by the taxpayers to ensure compliance with the provisions of the Act. As per CGST Rules, there are two types of audits:

Mandatory Audit: If the annual turnover of the taxpayer exceeds Rs. 2 crores, the taxpayer is required to get his accounts audited by a Chartered Accountant or a Cost Accountant, and submit the audit report with the tax authority.

Special Audit: If the tax authority is of the opinion that the taxpayer's records are not reliable, or the taxpayer is not able to determine the tax liability accurately, the authority may order a special audit.

Provisions for Special Audit

Special Audit is conducted under section 66 of the CGST Act. The following are the provisions for special audit:

Initiation: The special audit can be initiated by the Commissioner, either suo moto or on the recommendation of the GST Council or the taxpayer.

Appointment: The Commissioner will appoint a Chartered Accountant or a Cost Accountant to conduct the special audit.

Duration: The special audit should be completed within 90 days from the date of appointment.

Fee: The taxpayer will have to bear the cost of the special audit, which will be determined by the Commissioner.

Access to Records: The Chartered Accountant or the Cost Accountant conducting the special audit will have access to all the records and documents of the taxpayer.

Report: After completion of the special audit, the Chartered Accountant or the Cost Accountant will submit a report to the Commissioner, which will include the findings and recommendations for the taxpayer.

The taxpayer will be given an opportunity to present his case before the Commissioner, and the Commissioner will take a decision based on the report submitted by the Chartered Accountant or the Cost Accountant.

Conclusion

Chapter 11 of CGST Rules explains the procedures for assessment and audit under the Act. Special Audit is an important provision that helps the tax authority to verify the accuracy of the taxpayer's records and ensure compliance with the provisions of the Act. Every taxpayer should be aware of the provisions for special audit and comply with the same to avoid any legal consequences.

Suggestions



GST Implication on App Developers Situated Outside India
GST Excel Invoicing: Download Offline GST Excel Sheet Billing Software
PREPARED ENZYMES - GST RATES HSN CODE 3507

Updated on:
March 16, 2024