GST Audit and time limit, Goods and Services Tax - GST

[VENU K]

I have given a reply to an audit observation in the following fashion. Please provide your opinions on the matter

"The Auditee is in receipt of preliminary audit observations issued on 12/11/2014.In this matter, since the Audit had commenced on 18/12/2023 as per your letter No XXXX. The continuation of Audit beyond a period of 9 months from the date of commencement of audit is a violation of express provisions of Sec 65(4) time limits and as such the notice dated 12/11/2014 issued by you is without jurisdiction and we request you to please drop further proceedings in this matter.

Further the Auditee also requests you to provide a copy of the Specific sanction accorded by the Commissioner to continue the Audit beyond the period of three months as per Proviso to Sub Section 4 of Section 65.

Without Prejudice

The Auditee disputes all allegations in the notice made under serial numbers 1 to 15 as being contrary to law, existing jurisprudence as well as express provisions of the law and therefore rejects the entire demand."

Posts / Replies

[VENU K]

Please read the date as 12/11/2024. Date 2014 was a typo

[Amit Agrawal]

In the context of the query raised, explanation given under Section 65(4) is worth noting:

Explanation.––For the purposes of this sub-section, the expression “commencement of audit” shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later.

This explanation, in my view, gives lot of leverage to Dept's audit party to counter the claims made by you about validity of audit objections. 

It would be better, IMHO, if you defend each & every objection with detailed reply with supporting data & documents, instead of merely challenging the validity of audit objections on time limitations. 

These are ex facie views of mine and the same should not be construed as professional advice / suggestion or recommendation.