Budget 2020 – Suggestion given for removal of GST Audit, Tax Audit
One of the suggestion given by Advocate community for Budget 2020 is that GST Audit and Tax Audit should be abolished. As per the suggestion, India is a digital economy, where Tax Audits and GST Audits cast shadow on our digital economy. Further as per the argument, there are sufficient safeguards by way of penal provisions provided in tax regime. Therefore, there is no necessity to subject the taxpayers to GST Audits. They also belive, that when entire information about the business done by the taxpayers is readily available to all the officers in the tax administration department, then there is no need of Audit.
“Hon’ble Prime minister, Sir, it will be good for the GST tax administration if GST Audit is removed from the statute book. This is particularly so when GST Audit even for 2017-18 has still not been done and there are notifications extending the dates for such audits or exempting certain class of taxpayers. The information asked for in the GST Audit Form is readily available to the GST department through various returns filed by the taxpayers. It is impossible for any professionals to give a certificate that all the GST rules have been followed by the taxpayers. GST Audit is done. based on books and other documents that are given by the taxpayers to the accountants. With thousands of documents, legal interpretation of HSN classification, nature of supply, point & time of supply, exemptions, interpretation of tax rates – it is virtually not possible to give a certificate that all GST laws have been complied with.”