CGST Rules – Central Goods and Services Tax Rules, 2017

Rule 101 – Audit

This rule was made and amended vide the following notifications
• Central Tax Notification No. 74/2018 (dated 31st December 2018)

(1) The period of audit to be conducted under sub-section (1) of section
65
shall be a financial year ¹or
part thereof or multiples thereof.

(2) Where it is decided to undertake the audit of a registered person in
accordance with the provisions of section 65, the proper officer shall
issue a notice in FORM GST ADT-01 in accordance with the provisions of
sub-section (3) of the said section.

(3) The proper officer authorised to conduct audit of the records and the
books of account of the registered person shall, with the assistance of the
team of officers and officials accompanying him, verify the documents on
the basis of which the books of account are maintained and the returns and
statements furnished under the provisions of the Act and the rules made
thereunder, the correctness of the turnover, exemptions and deductions
claimed, the rate of tax applied in respect of the supply of goods or
services or both, the input tax credit availed and utilised, refund
claimed, and other relevant issues and record the observations in his audit
notes.

(4) The proper officer may inform the registered person of the
discrepancies noticed, if any, as observed in the audit and the said person
may file his reply and the proper officer shall finalise the findings of
the audit after due consideration of the reply furnished.

(5) On conclusion of the audit, the proper officer shall inform the
findings of audit to the registered person in accordance with the
provisions of sub-section (6) of section 65 in FORM GST ADT-02.

¹ Inserted in Central Goods and Services Tax (Fourteenth Amendment) Rules, 2018, vide Notification No.
74/2018 Central Tax (dated 31st December 2018)