If at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner having regard to the nature and complexity of the case and interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such taxable person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner. The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified: Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days.

Special Audit under GST Regime

Q1. In what cases special audit under Section 66 can be directed?

Ans. Special audit can be directed if at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, with the prior approval of Commissioner.

Q2. Whether Special audit can be initiated after completion of scrutiny, enquiry, investigation?

Ans. No, special audit can be initiated during the process of scrutiny, enquiry, investigation and not after completion of the same.

Q3. Who can direct the registered person to get his records audited under Section 66?

Ans. An officer not below the rank of Assistant Commissioner may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited.

Q4. Whether the proper officer nominated by Commissioner will be authorised to conduct the audit including books of account under Section 66?

Ans. No, only Chartered Accountant or a Cost Accountant as may be nominated by the Commissioner in this behalf will be authorised to conduct audit under Section 66.

Q5. What is the time limit to submit a report of the audit?

Ans. The chartered accountant or cost accountant nominated to conduct the audit under Section 66, shall submit a report, within a period of ninety days from the date of communication in writing by an officer not below the rank of Assistant Commissioner to get the audit of records of such registered person. The said period of ninety days can be extended by another period of ninety days on an application made in this behalf by the registered person or the chartered accountant or cost accountant or for material and sufficient reason.

Q6. Is the taxable person relieved from audit under Section 66 if the accounts of the taxable person have already been audited under any other provision of this Act or any other law?

Ans. The provision of Section 66(1) shall have effect notwithstanding that the accounts of the taxable person have been audited under any other provision of this Act or any other law for the time being in force or otherwise.

Q7. How are the expenses of audit determined and paid?

Ans. The expenses of, and incidental to, the examination and special audit of records under Section 66(1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and that such determination shall be final.

Q8. What action will be initiated when the special audit conducted under Section 66(1) results in a demand?

Ans. Where the special audit conducted under Section 66(1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under Section 73 or 74, as the case may be Recommended Articles

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