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CA Final · Indirect Tax Laws · Assessment and Audit

Sundaram Textiles Pvt Ltd, a registered person in Coimbatore, receives a notice that the proper officer intends to audit its records under section 65. The audit is proposed for the period from 1 October 2024 to 31 March 2025 only. Under the CGST Rules, 2017, which statement about the audit period and the notice is correct?

A part-year audit is valid because the audit period may be a financial year or part thereof or multiples thereof. The proper officer starts the audit by issuing notice in FORM GST ADT-01. ADT-03 and ADT-04 belong to special audit, not ordinary audit.

  1. AThe period must be a full financial year or multiples thereof, so a part-year audit 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, but the notice is issued in FORM GST ADT-03
  4. DThe period may be part of a year, and the findings are communicated in FORM GST ADT-04

Explanation

Rule 101(1) says the audit period is a financial year or part thereof or multiples thereof, so a six-month audit is valid. The notice under section 65(3) is issued in FORM GST ADT-01. ADT-03 and ADT-04 relate to special audit, and the first option ignores the words 'or part thereof'.

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