Rule 101. Audit.-
(1) The period of audit to be conducted under
sub-section (1) of section 65 shall be a financial year 1[or part thereof] or
multiples thereof.
(2) Where it is decided to undertake the audit of a
registered person in accordance with the provisions of section 65, the proper
officer shall issue a notice in FORM GST ADT-01 in accordance with the
provisions of sub-section (3) of the said section.
(3) The proper officer authorised to conduct audit
of the records and the books of account of the registered person shall, with
the assistance of the team of officers and officials accompanying him, verify
the documents on the basis of which the books of account are maintained and the
returns and statements furnished under the provisions of the Act and the rules
made thereunder, the correctness of the turnover, exemptions and deductions
claimed, the rate of tax applied in respect of the supply of goods or services
or both, the input tax credit availed and utilised ,refund claimed, and other
relevant issues and record the observations in his audit notes.
(4) The proper officer may inform the registered
person of the discrepancies noticed, if any, as observed in the audit and the
said person may file his reply and the proper officer shall finalise the
findings of the audit after due consideration of the reply furnished.
(5) On conclusion of the audit, the proper officer
shall inform the findings of audit to the registered person in accordance with
the provisions of sub-section (6) of section 65 in FORM GST ADT-02.
