Who will do the special audit?

Who will do the special audit? – Question 21 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. Who will do the special audit? Ans. A Charter

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What are the obligations of the taxable person when he receives the notice of audit?

Question 17 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. 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 of the audit, and c) render assistance for timely completion of the audit. – St

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What is meant by commencement of audit?

Question 16 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. 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 available to them, or b) the actual instit

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Who can conduct audit of taxpayers?

Question 13 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. Who can conduct audit of taxpayers? Ans. There are three types of audit prescribed in the GST Act(s) as explained below: (a) Audit by Chartered Accountant or a Cost Accountant: Every registered person whose turnover exceeds the prescribed limit, shall get his accounts audited by a chartered accountant or a cost accountant. (Section 35(5) of the CGST/SGST Act) (b) Audit by De

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Is summary assessment order to be necessarily passed against the taxable person?

Question 12 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. 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 per son in respect of such good s cannot be ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax (proviso to Section 6

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Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?

Question 11 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. 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 Commissioner within thirty days of the date of receipt of the order. If the said officer finds the order erroneo

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Under what circumstances can a tax officer initiate Summary Assessment?

Question 10 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Under what circumstances can a tax officer initiate Summary Assessment? Ans. As per section 64 of CGST/SGST Act, 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 officer believes that delay in passing an assessment order w

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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 9 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. 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 63 of CGST/SGST Act provides that in such a case, the proper officer can assess the tax liability and pass an order to his best judgment for the relevant tax periods. However, such an order must be passed within a period of five years from the

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Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?

Question 7 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn? Ans. The best judgment order passed by the Proper Officer under section 62 of CGST/SGST Act shall automatically stand withdrawn if the taxable person furnishes a valid return for the default period (i.e. files the return and pays the tax as assessed by him), within thirty days of

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If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?

Question 6 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), 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 46 of CGST/SGST Act requiring him to furnish the return within a period of fifteen days. If the taxable

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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, while conducting scrutiny under section 61 of CGST ACT?

Question 5 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT? Ans. If the taxable person does not provide a satisfactory explanation within 30 days of being informed (extendable by the officer concerned) or after accepting discrepancies, fails to tak

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What is the latest time by which final assessment is required to be made?

Question 3 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. 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 writing, the above period of six months may be extended: Ans. The f

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When can a taxable person pay tax on a provisional basis?

Question 2 – Draft-Bills-Reports – Assessment and Audit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. 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 suo-moto order payment of tax on provisional basis. This is governed by section 60 of CGST/

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Whether the amount of credit detected by the system on account of mis-match between GSTR-1 and GSTR-2 and recovered as output tax can be reclaimed?

Question 24 – Draft-Bills-Reports – Returns Process and matching of Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 24 – Q 24. Whether the amount of credit detected by the system on account of mis-match between GSTR-1 and GSTR-2 and recovered as output tax can be reclaimed? Ans. Yes, once the mismatch is rectified by the supplier by declaring the details of the invoices or debit notes, as the case may be, in his valid return for the month/quarter in which the error had be

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What happens if ITC is taken on the basis of a document more than once?

Question 23 – Draft-Bills-Reports – Returns Process and matching of Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 23 – Q 23. What happens if ITC is taken on the basis of a document more than once? Ans. In case the system detects ITC being taken on the same document more than once (duplication of claim), the amount of such credit would be added to the output tax liability of the recipient in the return. [section 42(6)] – Statutory Provisions, Acts, Rules, Regulations, Ta

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