The Classic Partners LLP

GST Audit & Assessment Support

Comprehensive GST audit and assessment support services for businesses facing departmental audits under Section 65, special audits under Section 66, and routine scrutiny by the GST authorities. Our Chartered Accountants represent your business, prepare audit working papers, and defend GST positions through every stage of the audit.

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What is GST Audit & Assessment?

GST audit is the formal examination of records, returns, and other documents maintained by a registered person to verify the correctness of turnover declared, taxes paid, input tax credit availed, refunds claimed, and compliance with the provisions of the CGST Act. Audits are conducted by the tax authorities themselves under Section 65, or by a Chartered Accountant or Cost Accountant nominated under Section 66 (special audit).

Assessment, on the other hand, is the legal determination of the tax liability of a taxpayer. The CGST Act provides for multiple modes of assessment — self-assessment (Section 59), provisional assessment (Section 60), scrutiny (Section 61), best-judgment assessment of non-filers (Section 62) and unregistered persons (Section 63), and summary assessment in special cases (Section 64).

Types of GST Audits

Section 65 — Departmental audit: conducted by tax officers at the taxpayer's place of business; notice issued in Form ADT-01, audit report in ADT-02.
Section 66 — Special audit: ordered by the Commissioner when complexity demands an external CA / CMA audit; report in ADT-04.
Section 35(5) / GSTR-9C: reconciliation statement, now self-certified by the taxpayer where turnover exceeds ₹5 crore. See Annual Return (GSTR-9).
Anti-evasion / DGGI investigations: conducted by the Directorate General of GST Intelligence in fraud cases.

Our GST Audit & Assessment Services

Pre-Audit Health Check

Comprehensive review of GST returns, ITC, and reconciliations to identify exposures before audit.

ADT-01 Notice Response

Drafting of replies, documentation submission, and representation before audit officers.

Audit Walk-Through

On-site representation, query handling, and explanation of business and GST positions to auditors.

Section 73 / 74 Defence

Drafting of replies to audit-driven Show Cause Notices. See Demand & SCN Handling.

Reconciliation Working Papers

GSTR-1, GSTR-3B, GSTR-2A/2B, and books reconciliation pack ready for inspection.

Post-Audit Appeals

Filing of appeals against audit-driven demands. See GST Appeal Services.

GST Audit Timeline & Procedure

Notice (ADT-01) — at least 15 working days before commencement of audit.
Audit period — must be completed within 3 months from commencement, extendable by the Commissioner by up to 6 months.
Findings (ADT-02) — final audit report communicated within 30 days of conclusion.
Voluntary payment — if discrepancies are accepted, tax with interest and reduced penalty can be paid through Form DRC-03.
Disputed findings — converted into a Show Cause Notice under Section 73 / 74 and adjudicated separately.

Documents Typically Examined in a GST Audit

All GST returns filed during the period — GSTR-1, GSTR-3B, GSTR-9, and GSTR-9C.
Books of account, audited financials, and trial balance.
Sales register, purchase register, fixed asset register, and stock records.
ITC reconciliation with GSTR-2A and GSTR-2B.
Export documents, FIRCs, LUTs, and refund applications.
Job-work register, e-way bills, and contracts with major customers and vendors.

Why Choose The Classic Partners

Audit-defence specialists with experience across central and state GST jurisdictions.
Reconciliation-first approach ensuring all data is matched before officers ask for it.
Senior representation by experienced Chartered Accountants and litigation support.
End-to-end coverage — from scrutiny to adjudication and appeals.

Frequently Asked Questions

Who can be selected for a GST audit under Section 65?

Any registered person can be selected for audit. Selection is typically risk-based using parameters such as turnover, mismatches between GSTR-1 and GSTR-3B, high ITC claims, refunds, and prior scrutiny history.

How much notice does the department give before starting an audit?

Form ADT-01 is issued at least 15 working days before the date on which the audit is proposed to commence. This window allows the taxpayer to organise records, returns, and reconciliations.

How long can a GST audit continue?

The audit must be completed within 3 months from the date of commencement. Where the Commissioner is satisfied that the audit cannot be completed within this period, the period may be extended by a further 6 months for reasons recorded in writing.

What is a special audit under Section 66?

Where, in the opinion of the officer, the value declared or credit availed is not commensurate with the nature or complexity of the business, the Commissioner may direct a special audit by a nominated Chartered Accountant or Cost Accountant. The audit report (Form ADT-04) must be submitted within 90 days, extendable by another 90 days.

What happens if I disagree with the audit findings?

Disagreed audit findings are typically taken forward through a Show Cause Notice under Section 73 or 74. You can defend your position at the adjudication stage and, if necessary, file an appeal under Section 107. See GST Appeal Services.

Can I pay tax voluntarily after an audit to reduce penalty?

Yes. Voluntary payment of accepted tax with interest and reduced penalty through Form DRC-03 — before issuance of SCN — typically attracts no penalty (in non-fraud cases) or significantly reduced penalty (in fraud cases) under Section 73(8) and Section 74(5) respectively.

Defend Your GST Positions with Confidence

Get experienced CA representation for every stage of GST audit and assessment.