Strategy for audits in 2017-18 consequent to GST – Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period
F. No. 381/209/2016 Dated:- 12-7-2017 Clarifications / Instructions / Orders
GST
DIRECTORATE GENERAL OF AUDIT
CENTRAL TAXES
C.R. BUILDING, I.P. ESTATE
NEW DELHI -110109
Ph. 011 – 23370075
Email: dg.audit-cbec@nic.in
Dated: 12th July 2017
F. No. 381/209/2016
To
The Principal Chief Commissioners/ Chief Commissioners of GST and Central Excise (All).
Madam/ Sir,
Subject: Strategy for audits in 2017-18 consequent to GST – reg
As you are already aware, the Department has rolled out GST smoothly. However, the activity of audit in GST will take some time to start. The audits in GST regime will require availability of records / documents of at least one year period. Once a sturdy database is available a clearer picture of the tax payer along with the nature of his transactions would emerge. This would assist i
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d for the past period can be taken up for verification in the year 2017 – 18 by Audit Commissionerates. In any case for the past period (i.e. before the appointed date) State officers would not have any power of audit under Central Excise and Service Tax. This work would be the domain of CBEC only.
4. Board has approved that, Directorate General of Audit would identify taxpayers for audit and calculate their risk scores as has been done in the past. The list of taxpayers with the risk scores will be shared with the Chief Commissioner in charge of each State. The Chief Commissioner shall allocate the taxpayers to the appropriate Audit Commissionerates in their jurisdiction.
5. This Directorate General has already run the risk assessment programme and created list of assessees in Large, Medium and Small categories for each of the erstwhile 45 Audit Commissionerate. Six lists each, i.e. Large, Medium and Small for Central Excise and Service Tax respectively for each Audit Commissionerat
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ons on the assumption on working strength used by this Directorate General, the same assumption of 50% of Sanctioned Strength as Working Strength, has been used.
(iii) The list of assessees sent by email contains the risk scores, whether the assessee is manufacturing sensitive commodity or rendering sensitive service, type of assessee,- whether proprietor, company, firm or government owned; and type of return filed by the assessee.
(iv) The Chief Commissioner's office shall distribute the aforesaid list of taxpayers to the appropriate Audit Commissionerates in their jurisdiction and selection of taxpayers may be carried out by Audit Commissionerates by applying local risk factors, including whether it has been audited in 2016 – 17. A schedule of taxpayers to be audited by each Audit Commissionerate may be prepared by taking into account the actual working strength and prescribed norms. At the preparatory stage, the said schedule should be discussed with the Chief Commissioner'
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sk scores, whether the assessee is manufacturing sensitive commodity or rendering sensitive service, type of assessee,- whether proprietor, company, firm or government owned; and type of return filed by the assessee.
(iv) The Chief Commissioner's office shall distribute the aforesaid list of taxpayers to the appropriate Audit Commissionerates in their jurisdiction and selection of taxpayers may be carried out by Audit Commissionerates by applying local risk factors, including whether it has been audited in 2016 – 17. A schedule of taxpayers to be audited by each Audit Commissionerate may be prepared by taking into account the actual working strength and prescribed norms. At the preparatory stage, the said schedule should be discussed with the Chief Commissioner's office and the jurisdictional zonal unit of this Directorate General. In case any taxpayer has been audited in 2016 – 17, they can be ignored and taxpayer who have not been covered for audit in 2016 – 17 or earlier m
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