Section 66 of GST - Special audit as per GST Act. Complete Details for GST Section 66 In this section you may find all details for "Demands and Recovery" as per GST Act 2017. Detailed Analysis of GST Section 66 of GST Act 2017. We Provide Complete Details for All GST Section’s and In this article you may find all details for GST Section 66.Must Read – List of all sections of GST
Section 66 of GST - Special audit as per GST Act
|Section or Rule||Description|
|Section 65||Audit by tax authorities|
|Section 73||Determination of tax not paid, short paid, erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any wilful misstatement or suppression of facts.|
|Section 74||Determination of tax not paid, short paid, erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful misstatement or suppression of facts.|
Analysis(a) Availing the services of the expert be it a Chartered Accountant or Cost Accountant is permitted by this section only when the officer (considering the nature & complexity of the business and in the interest of revenue) is of the opinion that:
- Value has not been correctly declared; or
- Credit availed is not within the normal limits.
It would be interesting to know how these ‘subjective’ conclusions will be drawn and how the proper officers determine what is the normal limit of input credit availed.
(d) Identifying that the expert is not left to be appointed by the registered person whose audit is to be conducted but the expert is to be nominated by the Commissioner.
Comparative ReviewLaw relating to Central Excise
- (a) Similar provision existed under the Central Excise law. Unduly large proportion of credit availment considering the industry is a reason for audit. This could also be a reason for special audit under GST also. The availing or utilization of CENVAT credit by reason of fraud, collusion or any willful mis-statement or suppression of facts can also be the reason for issuing notice for special audit. Under GST law, no special audit will be directed for wrong utilization of the credit, but wrong availment alone without any reason of fraud, collusion or any willful mis-statement or suppression of facts is sufficient to issue notice for special audit.
- (b) Under Central Excise law, the permission is given by the Principal Chief Commissioner or the Chief Commissioner of Central Excise. Under GST Act, the said permission is to be given by the Commissioner.
- (c) Under Central Excise law, the period within which the Chartered Accountant or the Cost Accountant should submit the audit report is not specified but the maximum extended period within which the audit report should be submitted remains to be 180 days. Under CGST Act, the audit report shall normally be submitted within 90 days and the maximum further extension could be another 90 days.
- The authority to direct the special audit rests with the Principal Commissioner or the Commissioner.
- The special audit may be initiated where person liable to pay service tax;
- has failed to declare or determine the value of taxable service correctly; or
- has availed and utilized the CENVAT credit which is not within the normal limits or by means of fraud, collusion or any willful mis-statement or suppression of facts; or
- has operations at multiple locations and true and complete picture of his accounts are not possible to get at his registered premises.
- The special audit report shall be submitted within the period as may be specified by the Commissioner. The time limit of maximum 180 days is not applicable.
- No provision exists regarding remuneration payable for the special audit, however, the same shall be paid by the Central Government