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CA Final · Indirect Tax Laws · Assessment and Audit

The Commissioner directs special audit of Brahmaputra Steels Ltd. under section 66 of the CGST Act. Under the CGST Rules, 2017, which statement is correct?

Special audit is ordered by a direction in FORM GST ADT-03 requiring the person to get records audited by a chartered accountant or cost accountant specified in the direction. On conclusion, findings are communicated to the registered person in FORM GST ADT-04.

  1. AThe direction is issued in FORM GST ADT-03 to get records audited by a chartered accountant or cost accountant specified in the direction, and findings are informed in FORM GST ADT-04Correct
  2. BThe direction is issued in FORM GST ADT-01 and findings are informed in FORM GST ADT-02
  3. CThe direction is issued in FORM GST ADT-03 and the registered person may choose any chartered accountant of his choice
  4. DThe direction is issued in FORM GST ADT-04 and findings are informed in FORM GST ADT-03

Explanation

Rule 102(1) provides for a direction in ADT-03 to get records audited by a chartered accountant or cost accountant specified in the direction. Rule 102(2) says findings are informed in ADT-04. The auditor is specified by the officer, not chosen by the taxpayer, which defeats the third option.

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