CA Final · Indirect Tax Laws · Assessment and Audit
During an audit of Bharat Components Ltd, the proper officer notices that input tax credit availed in some months does not match the invoices. Following Rule 101, what is the correct sequence of steps the officer must follow after recording observations in the audit notes?
The officer informs the registered person of the discrepancies, the person files a reply, the officer finalises the findings after considering that reply, and on conclusion of the audit the findings are communicated in FORM GST ADT-02. Findings are not issued before the reply is considered.
- AInform the registered person of the discrepancies, allow him to file a reply, finalise the findings after considering the reply, and then communicate them in FORM GST ADT-02Correct
- BIssue the final findings in FORM GST ADT-02 immediately, and then invite a reply from the registered person
- CDirect the registered person in FORM GST ADT-03 to get the records audited by a chartered accountant
- DIssue an assessment order in FORM GST ASMT-13 on the basis of the audit notes
Explanation
Rule 101(4) lets the officer inform the person of discrepancies, the person may reply, and the officer finalises findings after due consideration of the reply. Rule 101(5) then requires the findings to be informed in FORM GST ADT-02 on conclusion of the audit. Issuing ADT-02 before the reply reverses this order, and ADT-03 is for special audit.
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