Guidelines for Conduct of GST Audit Issued by Maharashtra GST Department

By: Admin July 10, 2024 Categories: State GST Notification and Circular


The Maharashtra GST Department has released Administrative Instructions (No. CST/DC-OSD/Adm. Instr./GST-Audit/B-68) dated July 09, 2024. These guidelines pertain to the conduct of GST audits and reference Internal Circular 9A of 2023 (December 21, 2023) and Internal Circular 04A of 2024 (May 24, 2024).

Background:

The revised audit framework under Internal Circular 04A of 2024 includes guidelines related to desk reviews, team formation, and the Audit Monitoring Committee under the Additional Commissioner of respective zones. These guidelines were issued following the formation of a separate audit wing as part of the Department’s restructuring. Field officers had queries regarding the applicability of these revised audit frameworks.

Initially, GST audits were conducted outside the BO system due to the unavailability of online functionality. However, online functionality is now available on the BO portal, enabling the online distribution of cases. As mandated by Circular 09A of 2023, audits from FY 2020-21 onwards must use the BO functionality. However, some centrally selected cases were audited manually before these guidelines were revised.

Operative Instructions:

  1. FY 2020-21 Audits:
  • Continue as per old guidelines; the revised audit framework of Internal Circular 04A of 2024 is not applicable.
  • Show Cause Notices under section 73 for FY 2020-21 must be issued by November 30, 2024. Audit proceedings will continue with Nodal & LTU Divisions as per earlier guidelines.
  1. FY 2021-22 Audits:
  • Conducted only by the newly formed audit wing per the new guidelines of Internal Circular 04A of 2024.
  • Present jurisdictional officers will not audit FY 2021-22.
  1. Completed Audits for FY 2020-21:
  • GST-ADT-02 issued outside the BO system must be uploaded on the BO portal using the new functionality for physical ADT-02 upload.

These guidelines aim to ensure uniformity in the audit process and smooth transitions. All field officers must follow these instructions diligently. Any difficulties in implementation should be reported to the relevant office.

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