Under Section 65, the Commissioner can conduct an audit of a registered person by issuing Form ADT-01 at least 15 working days in advance. Findings are communicated in Form ADT-02, which may lead to a show cause notice.
GST, Chhattisgarh
What this notice means
Audit observations should be answered point by point while the audit is in progress. Unresolved observations go into the final report and usually turn into a demand.
Common reasons it is issued
- Selection on risk parameters
- Large ITC refunds or claims
- Turnover or sector-specific risks
Time limit to respond
The audit is to be completed within three months, extendable by up to six months. Observations carry their own reply dates.
Documents to keep ready
- Books of account, returns and reconciliations for the audit period
- Contracts, invoices and ITC records
- Earlier assessment or scrutiny orders
How we handle it
- Prepare the records and reconciliations before the audit visit
- Respond to each audit observation in writing
- Pay accepted points through DRC-03 to limit penalty
- Contest disputed observations at the SCN stage
Points to note
- Keep written records of all submissions during the audit
- Classification and valuation issues need careful legal replies
What usually comes next
- Show Cause Notice u/s 73 / 74 / 74AShow cause notice after audit
- Reply to GST Pre-Show Cause Intimation in DRC-01APre-notice intimation
- GST Classification & RateClassification issues raised in audit
Frequently asked questions
Is GST audit the same as annual return reconciliation?
No. Departmental audit is conducted by tax officers under Section 65, separate from the taxpayer’s own annual return and reconciliation.
Official sources
- GST portalgst.gov.inView notices, file replies and first appeals
- CBIC – GSTcbic-gst.gov.inCGST Act, rules, notifications and circulars
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.