GST
Audit – Some Basics
1. Introduction
1.1 The
concept of audit by a Chartered Accountant in the area of Indirect Taxes was
confined to State Value Added Tax and Central Sales Tax laws of certain States.
In Central Excise and Service tax only in case of suspicion of undervaluation
or excessive credit special audits were prescribed (not much used) which
continue in GST. Therefore, Chartered Accountants engaged in rendering
professional services in the areas of State taxes would be familiar with those
provisions. The GST law has subsumed several Indirect Tax laws – among others,
it subsumed Central Excise, Service Tax, Luxury Tax, Entertainment Tax,
VAT/CST, Entry tax laws etc.; certain levies under the Customs laws have also
been subsumed into the GST laws.
1.2 It
would be relevant to note that the skill sets acquired in the understanding of
the statutes that have been subsumed into the GST laws would help in better
understanding of the GST laws since several provisions of the Central and State
enactments have been replicated (fully or partially) in the GST laws – say, for
instance, the provisions of Place of Supply of Services, Time of Supply of
Services, Valuation of Supply Rules, etc. That being said, one needs to
exercise caution in reading and understanding the subtle departures or changes
in the statute in comparison with the erstwhile legislations, in which case,
one has to enhance the understanding of the fully taken forward provisions. He
also needs to unlearn the old laws and learn the GST laws afresh for a complete
understanding of the taxing statute.
