Section 65 of GST Act: Audit by tax authorities

Amended and updated notes on section 65 of CGST Act, 2017. Detail discussion on provisions and rules related to audit by tax authorities.

Amended and updated notes on section 65 of CGST Act, 2017. Detail discussion on provisions and rules related to audit by tax authorities.

Chapter XIII (Sections 65-66) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to audit. Section 65 of CGST 2017 provides for audit by tax authorities.

Recently, we have discussed in detail section 64 (Summary assessment in certain special cases) of CGST Act 2017. Today, we learn the provisions of section 65 of Central GST Act 2017.

Section 65 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 65 is 1-7-2017.

Name of ActThe Central Goods and Services Tax Act 2017
Enacted byParliament of India
Administered byCentral Board of Indirect Taxes & Customs
Governing bodyGST Council
Number of Chapters21
Number of Sections174
You are reading:
Chapter No.XIII
Chapter NameAudit
Section No.65
Section NameAudit by Tax Authorities
Updated 2024 EditionGST Law Book PDF

Relevant Rules and Forms for GST Section 65:

  • Rule 101: Audit
    • FORM GST ADT-01: Notice for conducting audit
    • FORM GST ADT-02: Audit Report under section 65(6)

Section 65 of Central GST – Audit by tax authorities1

Section 65 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.

Section 65(1) of CGST Act

Section 65(1): The Commissioner or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.

Section 65(2) of CGST Act

Section 65(2): The officers referred to in sub-section (1) may conduct audit at the place of business of the registered person or in their office.

Section 65(3) of CGST Act

Section 65(3): The registered person shall be informed by way of a notice not less than fifteen working days prior to the conduct of audit in such manner as may be prescribed.

Section 65(5) of CGST Act

Section 65(4): The audit under sub-section (1) shall be completed within a period of three months from the date of commencement of the audit:

Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months.

Explanation: For the purposes of this sub-section, the expression “commencement of audit” shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later.

Section 65(5) of CGST Act

Section 65(5): During the course of audit, the authorised officer may require the registered person, —

(i) to afford him the necessary facility to verify the books of account or other documents as he may require;
(ii) to furnish such information as he may require and render assistance for timely completion of the audit.

Section 65(6) of CGST Act

Section 65(6): On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings.

Section 65(7) of CGST Act

Section 65(7): Where the audit conducted under sub-section (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 section 74.

  1. Section 65 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎


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