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GST Audit Notice

Department audit u/r 101

A GST audit under Rule 101 means a proper officer will examine your books of accounts, returns and records to verify the accuracy of your turnover, taxes paid, ITC claimed and refunds. You can receive an audit notice after filing GSTR-9 / GSTR-9C or as part of a risk-based selection.

⏱ 15 days notice before audit; audit may last 3 months

⚠️ Tax shortfall + interest at 18% + penalty up to 100% of tax due

Common Issues in This Type of Notice

Turnover suppression

Wrong tax rate applied

ITC on exempt supply

GSTR-9 vs books mismatch

How We Handle It — Step by Step

Notice uploaded

Upload ADT-01 (audit commencement notice)

Reconciliation

Expert reconciles GSTR returns with books

Discrepancy mapping

Each discrepancy is mapped to a legitimate explanation

Pre-audit reply

Written response submitted before audit begins

Audit representation

Expert represents you during actual audit proceedings

Documents You Will Need

All GSTR returns (1, 3B, 9, 9C)

Books of accounts (P&L, Balance Sheet)

Purchase and sales registers

Bank statements

HSN-wise summary

E-way bill reports

Relevant Case Laws & Precedents

Lakshmi Trading Co vs GST Authority

GST Appellate Authority

Assessment based on mere discrepancy between GSTR-1 and 3B without examining actual invoices and books is not sustainable.

Frequently Asked Questions

Do I have to allow officers into my premises?

Yes, for a departmental audit you must provide access. However, you have the right to be represented by a CA or Advocate.

Can I object to the audit?

You can raise procedural objections if proper notice and timeline were not followed per Rule 101.

What happens after audit?

If discrepancies are found, a SCN (Show Cause Notice) is issued. If not, you receive a clean audit report.