Who will do the special audit?
Question 24
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 24. Who will do the special audit?
Ans. A Chartered Account
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Who can serve the notice for special audit?
Question 23
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. Who can serve the notice for special audit?
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Under what circumstances can a special audit be instituted?
Question 22
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. Under what circumstances can a special audit be instituted?
Ans. A special audit can be instituted in limited circumstances where during scrutiny, investigation, etc. it comes to the notice that a case is complex or the revenue stake is high. This power is given in section 50 of MGL.
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What would be the action by the proper officer upon conclusion of the audit?
Question 21
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. What would be the action by the proper officer upon conclusion of the audit?
Ans. The proper officer must without delay inform the taxable person about his findings, reasons for findings and the taxable person's rights and obligations in respect of such findings.
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What are the obligations of the taxable person when he receives the notice of audit?
Question 20
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. What are the obligations of the taxable person when he receives the notice of audit?
Ans. The taxable person is required to:
a) facilitate the verification of accounts/records available or requisitioned by the authorities,
b) provide such information as the authorities may require for the conduct
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What is meant by commencement of audit?
Question 19
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. What is meant by commencement of audit?
Ans. The term 'commencement of audit' is important because audit has to be completed within a given time frame in reference to this date of commencement. Commencement of audit means the later of the following:
a) the date on which the records/accounts called for by the audit authorities are made availab
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What is the period within which the audit is to be completed?
Question 18
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. What is the period within which the audit is to be completed?
Ans. The audit is required to be completed within 3 months from the date of commencement of audit or within a further period of a maximum of 6 months subject to the approval of the Commissioner.
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Whether any prior intimation is required before conducting the audit?
Question 17
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Whether any prior
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Who can conduct audit of taxpayers?
Question 16
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Who can conduct audit of taxpayers?
Ans. As per section 49 of MGL, any officer of CGST or SGST authorized by his Commissioner by a general or specific order may conduct audit of a taxpayer. The frequency and manner of audit will be prescribed in due course.
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Is summary assessment order to be necessarily passed against the taxable person?
Question 15
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Is summary assessment order to be necessarily passed against the taxable person?
Ans. No. In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be ascertained, the person in charge of such goods shall be deemed to be
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Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Question 14
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Ans. A taxable person against whom a summary assessment order has been passed can apply for its withdrawal to the jurisdictional Additional/Joint Co
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Under what circumstances can a tax officer initiate Summary Assessment?
Question 13
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Under what circumstances can a tax officer initiate Summary Assessment?
Ans. As per section 48 of MGL, Summary Assessments can be initiated to protect the interest of revenue when:
(a) the proper officer has evidence that a taxable person has incurred a liability to pay tax under the Act, and
(b) the proper o
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What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Question 12
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?
Ans. Section 47 of MGL provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgmen
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What is the time limit for passing order u/s 46 and 47?
Question 11
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What is the time limit for pass
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Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
Question 10
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?
Ans. The best judgment order passed by the Proper Officer under section 46 of MGL shall automatically stand withdrawn if the taxable person furnishes a valid return for the default peri
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If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
Question 9
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?
Ans. The proper officer has to first issue a notice to the defaulting taxable person under section 32
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Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
Question 8
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?
Ans. As this provision relates to 'best judgment assessment', giving a notice to the taxable person is not required.
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What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
Question 7
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
Ans. If the taxable person does not provide a satisfactory explanati
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Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
Question 6
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?
Ans. Yes. He will be liable to pay interest from the date the tax was due to be paid originally t
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What is the latest time by which final assessment is required to be made?
Question 5
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What is the latest time by which final assessment is required to be made?
Ans. The final assessment order has to be passed by the proper officer within six months from the date of the communication of the order of provisional assessment. However, on sufficient cause being shown and for reasons to be recorded in w
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When can a taxable person pay tax on a provisional basis?
Question 4
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. When can a taxable person pay tax on a provisional basis?
Ans. As a taxpayer has to pay tax on self-assessment basis, a request for paying tax on provisional basis has to come from the taxpayer which will then have to be permitted by the proper officer. In other words, no tax officer can suomoto order payment of tax on provision
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‘A’ supplied goods to ‘B’ in April 2017, these goods were returned by ‘B’ to ‘A’ on June 2017. The tax rate charged by ‘A’ on such goods was 18%. In May 2017, the rate was amended to 18.5%. What is the tax payable on return of such inward supply by ‘B’ to ‘A’?
Question 3
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. 'A' supplied goods to 'B' in April 2017, these goods were returned by 'B' to 'A' on June 2017. The t
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Is there any provision in MGL for tax treatment of goods returned by the recipient?
Question 2
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Is there any provision in MGL for tax treatment of goods returned by the recipient?
Ans. Yes, Explanation to Section 44 of MGL has such a provision. It provides that where goods received as an inward supply is returned by the recipient to the supplier within six months from the date of the relevant inv
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Who is the person responsible to make assessment of taxes payable under the Act?
Question 1
Bill
Assessment and Audit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. Who is the person responsible to make assessment of taxes payable under the Act?
Ans. Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment he shall file the return required under section 27.
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Statute, statutory provisions legisla
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What is the consequence of not filing the return within the prescribed date?
Question 23
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. What is the consequence of not filing the return within the prescribed date?
Ans. A registered taxable person who files return beyond the prescribed date will have to pay late fees of rupees one hundred for every day of delay subject to a maximum of rupees five thousand.
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St
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