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CMA Final · Indirect Tax Laws and Practice · GST Annual Return and GST Audit Return

Under the CGST Rules, 2017 as given, which statement about audit by tax authorities is correct?

Under Rule 101, the audit period may be a financial year, a part of it, or multiples of a year, and the findings are informed in FORM GST ADT-02. Special audit uses different forms, ADT-03 for direction and ADT-04 for findings.

  1. ASpecial audit under section 66 is ordered through FORM GST ADT-01 and its findings are communicated in FORM GST ADT-02
  2. BUnder Rule 101, the period of audit can be a financial year or part thereof or multiples thereof, and findings are informed in FORM GST ADT-02Correct
  3. CSpecial audit is directed in FORM GST ADT-03 to a chartered accountant or cost accountant, and findings are informed in FORM GST ADT-02
  4. DThe audit period under Rule 101 must always be exactly one financial year

Explanation

Rule 101(1) allows the audit period to be a financial year, part thereof, or multiples thereof, and Rule 101(5) provides that findings go in FORM GST ADT-02. Special audit uses ADT-03 for direction and ADT-04 for findings, so the first and third options mix the forms. The fixed single year option is wrong because part or multiple years are allowed.

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