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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

The Commissioner begins an audit of Kaveri Foods Pvt Ltd under section 65 of the CGST Act, 2017. The records called for were made available on 10 June, but the officers actually began the audit at the company's premises on 20 June. The Commissioner is satisfied that the audit cannot be finished in the basic period and extends it to the longest period allowed. Counting from the commencement of audit, what is the maximum total period for completion?

Nine months from 20 June. Commencement of audit is the later of the date records are made available and the actual start of audit at the premises, so 20 June applies. The basic three months can be extended by up to six more months.

  1. AThree months from 10 June plus six months
  2. BThree months from 20 June plus six months, i.e. nine months in allCorrect
  3. CThree months from 20 June plus three months
  4. DNine months from 10 June

Explanation

The Explanation to section 65(4) treats commencement as the later of the date records are made available or actual institution of audit, so 20 June. The basic period is three months, extendable by up to six months for recorded reasons, giving a maximum of nine months from 20 June. Using 10 June takes the earlier date, which is wrong.

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