Audits of businesses under the indirect tax regime from this financial year are jointly conducted by Central and state goods and services tax (GST) officials, a relief for taxpayers since it will remove duplicate notices and dual investigations.
According to industry assessments, there are approximately 11,000 such cases of dual investigation by both the central and state authorities or under litigation. An internal communique to officials has been sent by the Numerous central GST zonal heads, requesting them to invite state officials to join their ongoing audits for better coordination, as per officials.
This coordination for audit was recommended at the time of the national coordination meeting conducted in the last month to ease the tax investigation, officials mentioned, who does not want to be determined. Officers from central GST may join the state GST audit teams, the communique said.
“This exercise will strengthen the capacities of SGST officers in audit and also enable officers to exchange critical compliance-related information with each other,” it stated.
The Central Board of Indirect Taxes and Customs (CBIC) questioned every zone to prepare its framework for such joint audits.
Another official mentioned that “A general message was conveyed to zonal heads who will implement it in their jurisdiction accordingly,” also it held that it should save time and human resources.
A fairer and more precise audit procedure is been expected under the initiative, experts added.
It seems to have a consequence in a wider and more detailed GST audit procedure which results in providing benefits to both the tax authorities as well as the taxpayers.
The same could lessen the possibility of duplication of efforts and ensure that the taxpayers are not concerned with multiple audits for the identical problem.
The CBIC directed its field officers to investigate violations that state GST officials are already measuring or concerning which they have issued notices.
