Audit under GST – Special Audit, Types of Audit, Procedure 2021

Special Audit under GST 2021: GST is a trust based tax routine in which the assessee is needed to self-assess his returns and figure out tax liability without any intervention by the tax official.Therefore a tax program that counts on self-assessment needs to put in location a robust audit mechanism to measure and make sure compliance of the arrangements of law by the taxable person.

” Audit” has actually been specified in area 2(13) of the CGST Act, 2017 and it suggests the assessment of records, returns and other files maintained or provided by the signed up individual under the GST Acts or the guidelines made there under or under any other law for the time being in force to confirm the accuracy of turnover declared, taxes paid, refund claimed and input tax credit availed, and toassess his compliance with the provisions of the GST Acts or the rules made thereunder.

Special Audit under GST:

Special Audit in GST

Types of Audit

GST envisages 3 kinds of Audit. T he first audit is by a chartered accountant or a cost accounting professional Every signed up individual whose aggregate turnover throughout a fiscal year exceeds 2 crore rupees has to get his accounts investigated by a chartered accounting professional or a cost accountant and provide a copy of audited yearly accounts and a reconciliation declaration, duly certified, in FORM GSTR-9C.

In the second type which is the regular audit, the Commissioner or any officer authorised by him, can carry out audit of any registered individual for such duration, at such frequency and in such way as may be recommended.

The third type of audit is called the Special Audit. In Special Audit the signed up person can be directed to get his records including books of account analyzed and audited by a chartered accountant or a cost accounting professional during any phase of analysis, questions, examination or any other proceedings; depending upon the intricacy of the case.


  • During the analysis, questions, investigation or any other proceedings of a registered individual, the Assistant Commissioner or any officer senior to him, having regard to the nature and complexity of the case and the interest of profits, may be of the viewpoint that the worth has not been properly declared or the credit availed is not within the normal limitations.
  • In such cases, with the prior approval of the Commissioner, the Assistant Commissioner or any officer senior to him can direct the registered individual in FORM GST ADT-03 to get his records consisting of books of account analyzed and investigated by a defined chartered accountant or a cost accounting professional. The chartered accounting professional or an expense accountant will benominated by the Commissioner.
  • The chartered accountant or expense accounting professional so nominated needs to submit a report of such audit within the duration of ninety days, duly signed and accredited by him to the Assistant Commissioner.
  • On an application made by the registered individual or the chartered accountant or expense accountant or for any product and enough reason, the Assistant Commissioner can extend the stated period by a more period of ninety days.
  • The arrangements of special audit will have result even if the accounts of the signed up person have actually been audited under any other arrangements of the GST Act or any other law for the time being in force.
  • The registered individual will be given a chance of being heard in regard of any material collected on the basis of special audit and which is proposed to be used in any procedures against him under this Act or the rules made thereunder.
  • The expenses of the evaluation and audit of records, including the remuneration of such chartered accounting professional or expense accountant, shall be identified and paid by the Commissioner.
  • On conclusion of the unique audit, the registered individual will be notified of the findings of the unique audit in FORM GST ADT-04
  • Where the unique audit results in detection of tax not paid or brief paid or erroneously refunded, or input tax credit incorrectly availed or made use of, the process of need and recovery will be initiated against the registered person.


Special audit provides a lawful and legal method for the GST officers to take the assistance of a chartered accountant or expense accountant to identify tax liabilities in complex cases. The professional expertise of a chartered accountant or expense accounting professional will be of excellent significance in ensuring that the interest of profits is secured at all times.

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