Section 65 of the Central Goods and Services Tax (CGST) Act, 2017 deals with the “Audit by Tax Authorities”. Under GST, the government is empowered to conduct audits to verify the correctness of turnover declared, taxes paid, refund claimed, and input tax credit (ITC) availed. This ensures transparency and compliance with GST provisions.
Objectives of Audit under Section 65
🔹 To ensure correct reporting of GST liabilities
🔹To verify the utilization and eligibility of Input Tax Credit
🔹To detect potential tax evasion or fraud
🔹To promote voluntary compliance among taxpayers
📂 Documents Generally Required During Audit
🔹GST returns (GSTR-1, GSTR-3B, GSTR-9)
🔹Tax invoices and bills of supply
🔹Purchase registers and sales registers
🔹ITC ledger and payment challans
🔹Books of accounts as per Section 35
🔹E-way bills and stock registers
⏳ How Long Will the Audit Take?
🔹The audit must be completed within 3 months from the date it starts.
🔹If needed, the Commissioner can extend it to 6 months (with reasons recorded in writing).
🔹 Duties of the Registered Person
1. During audit, the taxpayer must:
2. Provide access to books of accounts
3. Cooperate with the officer
4. Furnish documents, returns, and records
📍 Where Will the Audit Be Done?
The audit may be conducted:
1. At the taxpayer’s premises (business location), or
2. At the office of the tax officer
🔹 What Happens After the Audit?
1. The officer shares audit findings (Form ADT-02).
2. If any short payment, wrong ITC, or non-compliance is found:
3. Action is taken under Section 73 or 74 (demand & recovery).
🔹 Key Features
