INTRODUCTION- OBJECTIVES OF AUDIT UNDER CGST ACT, 2017 - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

CHAPTER VII AUDIT 1. INTRODUCTION- OBJECTIVES OF AUDIT UNDER CGST ACT, 2017 This chapter outlines the principles and policies of audits conducted under the CGST Act, 2017 and the rules made thereunder, viz. CGST Rules, 2017. The objective of audit of taxpayers under GST is to measure the level of their compliance in the light of the provisions of the CGST laws. Audit examines the declaration of taxpayers to not only test the accuracy of the declaration and the accounting systems that produce the declared liability, but also evaluate the credibility of the declared or assessed tax liability. 1.1 Audit is a systematic examination of financial records, statements, transactions and operations of a business to ensure accuracy, compliance with laws and financial management. An effective audit program generally results in the discovery of under-declared liabilities either by omission, error or deliberate deception and is dependent on the effectiveness of audit planning and implementation. An efficient and effective audit system promises voluntary compliance and facilitates the tax administration s aim of getting the right tax at the right time. 1.2 The provisions of the CGST Act, 2017 and the CGST Rules, 2017 relevant to this Chapter are as under Sr. No. Sections / Rules Provisions pertaining to 1. Section 65 Audit by Tax authorities 2. Section 66 Special Audit 3. Rule 101 Audit 4. Rule 102 Special Audit 5. Section 71 Access to Business premises