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

The department issues a notice of audit under Section 65 of the CGST Act, 2017 to Verma Exports Ltd. The records called for are made available on 10 March, but the officers actually start the audit at the company's premises on 20 March. Records are available earlier than the institution of audit. By when must the audit be completed without any extension by the Commissioner?

The audit must be completed within three months from 20 March. Section 65(4) sets three months from commencement, and the Explanation defines commencement as the later of the date records are made available and the actual institution of audit. Here the later date is 20 March.

  1. AThree months from 10 March
  2. BThree months from 20 MarchCorrect
  3. CSix months from 20 March
  4. DNine months from 10 March

Explanation

Under Section 65(4) the audit must be completed within three months from commencement. The Explanation says commencement is the later of the date records are made available and the actual institution of audit. The later date is 20 March, so three months run from then. Using 10 March takes the earlier date, which is wrong.

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