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CA Final · Indirect Tax Laws · Assessment and Audit

The Assistant Commissioner issues a direction to Himalaya Foods Pvt. Ltd. under section 66 for special audit. The direction names a chartered accountant, Mr. Rohan Mehta, to audit the company's records. Which statement is correct as per the CGST Rules, 2017?

Special audit is directed in FORM GST ADT-03, naming a chartered accountant or cost accountant specified in the direction, and the findings are informed to the registered person in FORM GST ADT-04. The registered person does not choose the auditor, and ADT-01 and ADT-02 apply to ordinary audit.

  1. AThe direction is issued in FORM GST ADT-01 and findings are given in FORM GST ADT-02
  2. BThe direction is issued in FORM GST ADT-03, and the registered person is informed of the findings in FORM GST ADT-04; the auditor may be a chartered accountant or cost accountant specified in the directionCorrect
  3. CThe direction is issued in FORM GST ADT-03 and the company may choose any chartered accountant of its choice
  4. DThe direction is issued in FORM GST ADT-04 and findings are given in FORM GST ADT-03

Explanation

Rule 102(1) requires a direction in FORM GST ADT-03 to get records audited by a chartered accountant or cost accountant specified in the direction. Rule 102(2) requires findings to be informed in FORM GST ADT-04. The auditor is specified by the officer, so the option allowing the company's choice is wrong.

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