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CA Final · Indirect Tax Laws · Assessment and Audit

Meridian Traders Pvt Ltd, Pune, is selected for audit by the proper officer. The department wants to audit the period from 1 October 2024 to 31 March 2025 only, being a part of FY 2024-25. Under the CGST Rules, which statement about the audit period and the initiating document is correct?

The audit period can be a financial year, a part of a financial year, or multiples of a year, so October to March is permissible. The proper officer starts the audit by issuing a notice in FORM GST ADT-01 to the registered person.

  1. AThe period must be a full financial year or multiples thereof; part of a year is not permitted
  2. BThe period may be a financial year or part thereof or multiples thereof, and the notice is issued in FORM GST ADT-01Correct
  3. CThe period may be part of a year, and the notice is issued in FORM GST ADT-03
  4. DThe period must be a calendar quarter, and the notice is issued in FORM GST ADT-02

Explanation

Rule 101(1) states that the audit period is a financial year or part thereof or multiples thereof. Rule 101(2) requires the notice in FORM GST ADT-01. The option insisting on a full year ignores the words 'or part thereof'. ADT-03 relates to special audit and ADT-02 to audit findings.

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