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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

An officer of the rank of Assistant Commissioner, during scrutiny, forms the opinion that credit availed is not within normal limits and wants a special audit of Vishwa Traders Ltd. Which statement is correct under the CGST Act, 2017?

The direction needs the Commissioner's prior approval and must be in writing, and the auditor is a chartered accountant or cost accountant nominated by the Commissioner. Earlier audits under other laws do not bar it, and the Commissioner determines and pays the expenses.

  1. AThe direction needs the prior approval of the Commissioner and the auditor is a chartered accountant or cost accountant nominated by the CommissionerCorrect
  2. BThe registered person may nominate any auditor of its choice and pay the fee itself
  3. CNo special audit is possible if the accounts were already audited under another law
  4. DThe direction can be issued orally by the officer without the Commissioner's approval

Explanation

Section 66(1) requires a written direction with prior approval of the Commissioner, and the auditor is a CA or cost accountant nominated by the Commissioner. Section 66(3) says special audit applies even if accounts were audited under another law, and section 66(5) says the Commissioner determines and pays the expenses.

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