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CA Final · Indirect Tax Laws · Assessment and Audit

Narmada Pharma Ltd is directed to get its records audited by a cost accountant specified by the officer, because the case is complex. Later the special audit is completed. Which statement is correct under the CGST Rules, 2017?

For special audit, the officer issues a direction in FORM GST ADT-03 naming the chartered accountant or cost accountant, and on conclusion the registered person is informed of the findings in FORM GST ADT-04. ADT-01 and ADT-02 belong to ordinary audit.

  1. AThe direction is issued in FORM GST ADT-03 and the findings of the special audit are informed to the registered person in FORM GST ADT-04Correct
  2. BThe direction is issued in FORM GST ADT-01 and the findings are informed in FORM GST ADT-02
  3. CThe direction is issued in FORM GST ADT-03 and the findings are informed in FORM GST ADT-02
  4. DThe direction is issued in FORM GST ADT-04 and the findings are informed in FORM GST ADT-03

Explanation

Rule 102(1) provides for a direction in FORM GST ADT-03 requiring the registered person to get records audited by a specified chartered accountant or cost accountant. Rule 102(2) says the findings are informed in FORM GST ADT-04. ADT-01 and ADT-02 are for ordinary audit under rule 101, so mixing them is wrong.

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