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

Which statement is correct in respect of audit by tax authorities and special audit under the CGST Rules, 2017 as reproduced?

Departmental audit begins with a notice in FORM GST ADT-01 and ends with findings in FORM GST ADT-02. Special audit is directed in FORM GST ADT-03 to a chartered accountant or cost accountant, and findings are informed in FORM GST ADT-04. Audit period may be a financial year, part thereof, or multiples.

  1. AAudit under section 65 starts with notice in FORM GST ADT-01 and its findings are informed in FORM GST ADT-02; special audit is directed in FORM GST ADT-03 to a chartered accountant or cost accountant and its findings are informed in FORM GST ADT-04Correct
  2. BAudit under section 65 starts with FORM GST ADT-03 and ends with FORM GST ADT-04; special audit starts with FORM GST ADT-01
  3. CSpecial audit may be directed only to a chartered accountant, and its findings are informed in FORM GST ADT-02
  4. DAudit under section 65 must always cover exactly one financial year and cannot cover a part of it

Explanation

Rule 101(2) provides ADT-01 notice and rule 101(5) provides ADT-02 findings. Rule 102(1) provides ADT-03 direction to a chartered accountant or cost accountant, and rule 102(2) provides ADT-04 findings. Rule 101(1) allows the audit period to be a financial year or part thereof or multiples, so the last option is wrong.

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