Recently the Government of Karnataka (GoK) revealed the striking features of electronic scrutiny of high-risk cases, audit observations, and DRC as stated under the Assessment module (e-shodane) under KGST Act, 2017. The audit is a vital tool/process in tax administration to assure compliance with the concerned provisions of taxation laws. The department in collaboration with NIC, Karnataka, has developed an e-audit module and is being initiated to carry out audit and Assessment proceedings according to the provisions of the KGST Act.
There is a need to specify the procedure based on the file to the GST audit module. Therefore, the following procedures and guidelines have been laid down to keep uniformity in the department in relation to the audit and Assessment proceedings required under sections 65, 73, and 74 of the KGST Act. E-Shoden presents an online platform for the entire audit assessment process, including the selection of cases for audit, assignment of cases, communication with registered taxable persons, and the passing of audit reports to the Assessment report. It captures a log of activities carried out by the proper officers at various stages of the processes. The audit officer is liable to conclude the audit and inform the finding of the audit, their rights obligations, and reasons for findings to the RTP in the Form ADT-02 within 30 days from the conclusion of the Auditing process as mentioned under section 65(6). The Audit Officer will have to complete the audit within three months of initiation of audit as made compulsory under section 65 (4). The time starts from the date the records and other documents are called, which are made available by RTP or audit of the actual institution, whichever comes later. Read also: How ITC Ledger works in Gen GST Software Version 2.0 The date of commencement of audit is important in the Initial Report menu to the Audit Officer and should take full care of starting the audit within the stipulated time frame. If the auditing process cannot be completed within the stipulated time, then the audit officer will have to request the Joint Commissioner (Admn) for an extension in dates, if the Joint Commissioner get satisfied with the reasons for such request, will make a recommendation to the Commissioner, through Additional Commissioner (Audit) for the extension. The commissioner can extend the deadline but may not extend the time beyond six months, and reasons will be recorded in writing. The audit officer will practice due diligence when requesting an extension of the deadline, which must be corrected in advance. If the auditing process results in a finding of tax is not paid or tax short paid or wrongly refunded or input tax credit (ITC) is wrongly availed/used and if the taxable person does not accept the audit officer's resolutions and doesn’t pay tax according to FORM GST ADT-02 and the audit reports, then the audit officer has authorities to proceed to terminate the demand and recovery proceedings under section 73 or 74 as the matter may arise after having assignment in duality.
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AuthorI am Amit Gupta. I like to write posts about chartered accountants' topic. |