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

Under Section 66 of the CGST Act, 2017, a special audit of a registered person's records may be directed by an officer when, in the officer's opinion, which of the following exists?

Special audit can be directed where the officer believes the value has not been correctly declared or the credit availed is not within normal limits. The officer must be at least an Assistant Commissioner and must have the Commissioner's prior approval. Late filing or turnover thresholds are not the stated grounds.

  1. AThe person has filed returns late on two occasions
  2. BThe value has not been correctly declared or the credit availed is not within normal limitsCorrect
  3. CThe turnover of the person exceeds the prescribed audit threshold
  4. DThe person has opted for the composition levy

Explanation

Section 66(1) allows the direction when, at any stage of scrutiny, inquiry, investigation or other proceedings, an officer not below Assistant Commissioner, with prior Commissioner approval, forms the opinion that value is not correctly declared or credit availed is not within normal limits. Late filing or a turnover threshold is not the stated ground.

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