GST AUDIT IN PUNJAB

GST AUDIT IN PUNJAB

AUDIT BY DEPARTMENT         

1.1         Why department conducts audit?

Objectives of audit conducted by the Department are as under:

• To ascertain correctness of the returns filed.
• To check admissibility of various claims including input tax credit and refund.
• To verify admissibility of documents, information and statutory forms.

1.2         Notice to intimate a person to initiate audit

The Commissioner or designated officer or any other authorized officer may select any person for the purpose of audit and shall send intimation notice at least 10 days in advance. Such notice shall clearly state the following:-

• Period under audit;
• Date, time and place fixed for such audit; and
• Books of accounts required for verification.

1.3         Time limit for conducting audit.

The audit under section 28(1) may be carried out within a period of 6 years from the date of furnishing of returns.

1.4         How are the persons selected by Commissioner for audit?

The Commissioner shall select, on the basis of the parameters as may be laid down by him, a certain number of persons for this audit.

The audit shall be performed by an officer or a team of officers consisting of such officers as may be deemed fit by the Commissioner

Assistance in performance of audit

The commissioner may, keeping in view the nature and complexity of a case and in the interest of revenue, nominate professionals like chartered accountants or cost accountants from amongst a panel of such professionals duly approved by the government, for assistance in performance of audit by the officers of the department The remuneration for these professionals shall be determined by the commissioner based on the turnover of a person required to be audited with assistance of the professionals. Monitory incentive may also be given in addition to the remuneration, based on the performance and revenue gains.

NOTE: The audit may be made for any no. of return periods.          

1.5         Which documents can be examined?

For the purpose of audit under section 28(1), the Commissioner or any designated officer, may, after due notice to the person to be audited, can examine:-

• Records,
• Stock in trade and
• Related documents of the person

1.6         Place of audit

The examination of records can be undertaken in any office of the Excise and Taxation Department of the State or at the business premises of the person.

1.7         What are the obligations of a person in case of audit by department?

The obligations are:

• Produce books of accounts as specified in notice on the specified date, time and place.
• Afford necessary facility to inspect/ verify the books of accounts.
• Give explanations and reply to the queries raised by the designated officer during the course of audit.
• Provide with any other additional information asked by the designated officer necessary for the purpose of audit.

1.7A       Full cooperation required during the course of audit       

During the course of audit, the person concerned shall provide to the Commissioner or any other authorized officer, all necessary information and facilities, as may be required by the officer, for conducting the audit.

1.8      Appeal against notice for audit.

There is a bar on appeal against a notice issued under the act calling a person for audit.

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