Who can serve the notice of communication for special audit?
Question 20
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. Who can serve the notice of communic
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Under what circumstances can a special audit be instituted?
Question 19
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. 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 66 of CGST /SGST Act.
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What would be the action by the proper officer upon conclusion of the audit?
Question 18
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. What would be the action by the proper officer upon conclusion of the audit?
Ans. The proper officer shall, on conclusion of audit, within 30 days 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 17
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 au
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What is meant by commencement of audit?
Question 16
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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
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What is the period within which the audit is to be completed?
Question 15
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. 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. The period is extendable for a further period of a maximum of 6 months by the Commissioner.
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Whether any prior intimation is required before conducting the audit?
Question 14
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. Whether any prior intimatio
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Who can conduct audit of taxpayers?
Question 13
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 A
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Is summary assessment order to be necessarily passed against the taxable person?
Question 12
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 t
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Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?
Question 11
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 Commissione
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Under what circumstances can a tax officer initiate Summary Assessment?
Question 10
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 off
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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
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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
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What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Question 8
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. What is the time limit for passing assessment order u/s 62 (Best Judgment) and 63 (Non-filers)?
Ans. The time limit for passing an assessment order under section 62 or 63 is five years from the due date for furnishing the annual return.
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Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?
Question 7
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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
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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
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 issu
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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
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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 t
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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 4
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. 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 till the da
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What is the latest time by which final assessment is required to be made?
Question 3
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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, t
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When can a taxable person pay tax on a provisional basis?
Question 2
Bill
Assessment and Audit
Faq On GST (2nd Edition) Dated 31.3.2017
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
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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 (2nd Edition) Dated 31.3.2017
13. Assessment and Audit
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 39.
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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
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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
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What happens if ITC is taken on the basis of a document more than once?
Question 23
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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(
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What is the consequence of not filing the return within the prescribed date?
Question 22
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. What is the consequence of not filing the return within the prescribed date?
Ans. A registered 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. For failure to furnish A
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Is it compulsory for a taxpayer to file return by himself?
Question 21
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. Is it compulsory for a taxpayer to file return by himself?
Ans. No. A registered taxpayer can also get his return filed through a Tax Return Preparer, duly approved by the Central or the State tax administration.
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What precautions, a taxpayer is required to take for a hassle free compliance under GST?
Question 20
Bill
Returns Process and matching of Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. What precautions, a taxpayer is required to take for a hassle free compliance under GST?
Ans. One of the most important things under GST will be timely uploading of the details of outward supplies in Form GSTR-1 by 10th of next month. How best this can be ensured will depend on the number of B2B invoices that the taxpayer issues. If the number is small, the taxpayer can upload all the information in one go. However, if the number of invoices is large, the invoices (or debit/ credit notes) should be uploaded on a regular
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close to the due date. The system would allow recipients to see if their suppliers have uploaded invoices pertaining to them. The GSTN system will also provide the track record about the compliance level of a tax payer, especially about his track record in respect of timely uploading of his supply invoices giving details about the auto reversals that have happened for invoices issued by a supplier. The Common Portal of GST would have pan India data at one place which will enable valuable services to the taxpayers. Efforts are being made to make regular uploading of invoices as easy as possible and it is expected that an enabling eco- system will be developed to achieve this objective. Taxpayers should make efficient use of this ecosystem fo
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