Experts Want Review of GST Audit Guidelines to Include Video Conferencing

In the lockdown caused by Coronavirus pandemic, many experts believe that the current GST audit guidelines Get some necessary points to be noted while filing GSTR 9C (GST Annual Return Audit Form) by tax professionals along with easy guide before GST audit report. Read more need to be reviewed because GST officers need to audit and assess taxpayers through video-conferencing to avoid physical contact and physical visits. According to the current audit guidelines of goods and services tax (GST), taxpayers have been categorized into three groups i.e large, medium, and small as per their annual turnover. It also states that large and medium groups are compulsorily under premises-based audits; Whereas for taxpayers from the small group, the desk-based audit has been suggested. It also states that in the case of non-cooperative taxpayers or any inherent instability of the internal control system, GST officers are allowed to shift back to the premises-based audit.

The CIBIC which stands for the Central Board of Indirect Taxes and Customs also issued instructions last month instructing officers to organize a personal hearing through the video-conferencing facility in respect of customs law, central excise, and service tax laws. Now experts said that the auditing for the financial year 2017-18 is yet to start, thus to flag risky cases the GST audit guidelines need to be reviewed and video conference facilities also need to include along with strengthening the risk management system. Meanwhile, the FY 2017-2018 was the first year in the GST System View the full comparison report between old and new GST return filing system in a systematic manner. The new system will be applicable from July 2019.

A similar statement has also been passed by Pratik Jain. Patrik Jain is Partner and National Leader – Indirect Tax at PwC India and he said that “GST audit and assessment for 2017-18 will start soon and the department will have to review the audit guidelines”.

He further added “The current guidelines talk about physical visits to premises of large business for say 7-8 days and conducting the audit. With social distancing being a ‘new normal’ now, GST officials might have to explore more virtual verifications,…The government will have to take a relook at its risk management system and devise better ways of assessing taxpayers,”.

Rajat Mohan Senior Partner of AMRG & Associates also said in this matter that “Customs is one part of CIBIC and it has already adopted the use of technology, thus it is also expected that GST with more than 1.2 crore taxpayers would also adopt more technology or such functions in all the departmental functions including assessments, appeals, adjudications, and audit”.

Rajat Mohan further added that “Introducing a video-conferencing facility in all the tax laws is imperative to the business continuity plan of the economy, otherwise, this pandemic will result in inordinate delay in the delivery of justice”.