SPECIAL AUDIT – SECTION 66 OF CGST ACT, 2017 AND RULE 102 OF THE CGST RULES, 2017. - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

4. SPECIAL AUDIT SECTION 66 OF CGST ACT, 2017 AND RULE 102 OF THE CGST RULES, 2017. 4.1 If, during any phase of examination, inquiry, investigation, or other proceedings, an officer not below the rank of Assistant Commissioner, considering the nature of the case, complexity, and revenue implications, is of the opinion that the declared value is inaccurate or the credit availed exceeds normal limits, he may, with Commissioner s approval, direct the concerned registered person in writing to have his records, including accounting books, to be reviewed and audited by a Chartered Accountant or a Cost Accountant nominated by the Commissioner. The directions to conduct such audit shall be issued in FORM GST ADT-03 as prescribed under Rule 102(1) of the CGST Rules, 2017 Section 66 of the CGST Act, 2017 and Rule 102(1) of the CGST Rules, 2017. 4.2 The Chartered Accountant or the Cost Accountant nominated to conduct audit shall, within a period of ninety days, submit the audit report duly signed and certified by him to the said Assistant Commissioner, along with such other particulars as may be specified. However, the period may be extended by a further period of ninety days by the Assistant Commissioner, on an application made to him in this behalf by the registered person or the Chartered Accountant or the Cost Accountant for any material and sufficient reason Section 66(2) of the CGST Act, 2017. 4.3 On conclusion of the audit under Section 66, the registered person shall be informed of the findings of the special audit in FORM GST ADT-04 Rule 102(2) of the CGST Rules, 2017. 4.4 The proper officer shall initiate action for recovery of tax, input tax credit and/or erroneous refund detected during the audit Section 73 /or 74 of CGST Act, 2017.