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CA Final · Indirect Tax Laws · Assessment and Audit

M/s Kaveri Textiles, Coimbatore, is a registered person. The proper officer decides to audit its records under section 65 of the CGST Act. Which of the following correctly states the form of the notice and the audit period permissible under the CGST Rules, 2017?

The notice for audit under section 65 is issued in FORM GST ADT-01, and the audit period can be a financial year, part of a financial year, or multiples of a financial year. FORM ADT-02 communicates findings and ADT-03 is for special audit, so they do not apply here.

  1. ANotice in FORM GST ADT-01; audit period is a financial year or part thereof, or multiples thereofCorrect
  2. BNotice in FORM GST ADT-02; audit period is a financial year or part thereof, or multiples thereof
  3. CNotice in FORM GST ADT-01; audit period must be exactly one financial year and cannot be a part of it
  4. DNotice in FORM GST ADT-03; audit period is any number of months chosen by the officer

Explanation

Rule 101(2) requires the notice in FORM GST ADT-01. Rule 101(1), as amended, says the audit period is a financial year or part thereof or multiples thereof. ADT-02 is used to communicate findings, and ADT-03 is the special audit direction, so those options are wrong.

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