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Team Studycafe | Sep 16, 2022 | Views 7678

CBIC develops System for Monitoring GST Audits initiated by Tax Officials

CBIC develops System for Monitoring GST Audits initiated by Tax Officials

The Central Board of Indirect Taxes and Customs (CBIC) has established a system for online monitoring of GST audits launched by tax officers around the nation, in order to effectively oversee the auditing process.

The tax authority views the GST audits, which started earlier this year, as a useful tool for checking the accuracy of the tax returns filed, but it also does not want any excess on the part of the authorities.

A dashboard and web-based tool for tracking the progress of audits from beginning to end have been established, according to an update posted on the CBIC website. This month, CBIC conducted a conference of commissionerates across the nation responsible for audits.

Since the Board extended the deadline for filing yearly returns during the COVID period, the audit of GST filings has gained momentum. The government also relaxed the rules governing small firms’ yearly returns and reconciliation statements. Given that the tax authority is determined to ensure that there is no revenue leakage while ensuring that the audit process does not become cumbersome for tax payers, the online monitoring of audits by the tax authority becomes significance.

Since the introduction of GST in 2017, tax return filing has greatly increased, which also suggests that more economic activity and transactions are now being reported under the indirect tax system.

In addition to the GST audit that businesses, with the exception of small ones, conduct, GST authorities also audit companies. Tax experts have noted a rise in the number of companies seeking guidance on problems resulting from departmental audits in recent months.

Mismatches between the tax return filed by a firm providing a summary of transactions that serves as the foundation for paying taxes and the automatically generated return of purchases of raw materials and services frequently lead to audits. The requirement for annual returns to be audited was eliminated for companies with sales of at least 2 crore rupees last year, and for companies with sales of at least 5 crore rupees, self-certification of a reconciliation statement replaced the requirement for certification by a chartered or cost accountant. The goal was to promote willing compliance.

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