How to Comply GST Audit Notice ADT 1

By | September 1, 2021
(Last Updated On: September 1, 2021)

General

1. What is Audit? What documents are checked during the Audit process?

Audit is verification of the original records, returns and other documents kept with the taxpayer at the business premises (including all Additional Place of business) and correlating them with the information furnished by the taxpayer on the GST Portal in his/her returns/statements to verify the correctness of turnover. The audit officer can examine audit documents of taxpayer’s original records either in the office of the Tax Official or at the business premises of the taxpayer.

 

The process may lead to the issuance of notices and report to the taxpayer based on the observations and findings by the Tax Official.

2. What are the various tabs available in the Case Details page?

Six clickable tabs are available in the case details page:

 

NOTICESTo view issued notices against you by the Tax Official

REPLIESTo view or add your reply to the issued notices/reports

PAYMENT DETAILSTo view all the payments made by you against Notice of Discrepancy or Additional Notice of Discrepancy or Audit Report through GST DRC-03

ACKNOWLEDGEMENT (GST DRC-04)To view acknowledgement issued in Form GST DRC-04

REPORTTo view issued reports against your case by the Tax Official

REQUESTSTo initiate a request for your case like extension of audit period etc.

3. What happens on the GST Portal if a notice/report is issued to you by the Tax Official?

Following actions take place on the GST Portal once a notice/report is issued to you by the Tax Official:

  • An intimation of the issued notice/report is sent to your registered email ID and mobile number.
  • Issued notice/report is updated on your dashboard.

Viewing Notices

4. From where can I view notices issued to me?

To view notices issued against your case, navigate to Services > User Services > View Additional Notices and Orders > click view hyperlink > NOTICE option.

 

Viewing and Filing Reply or Counter-Reply

5. From where can I view filed replies against notice/report by Tax Official?

To view the filed reply, navigate to Services User Services > View Additional Notices/Orders > click view hyperlink REPLIES option.

6. What happens on the GST Portal if I file a reply or counter-reply?

Once you file a reply or counter-reply, the following actions take place on the GST Portal:

  • Case ID Status is updated as Reply Filed.
  • Upon submission of reply, you will receive SMS and email intimating the acknowledgement of reply.
  • Record of the filed reply is updated on your dashboard as well as on Tax Official’s dashboard.
  • Once the reply is submitted it will be available to the Tax Official in the Reply folder of that particular case. Tax Official can download the supporting documents and proceed with the Audit.

 

7. I missed the deadline for filing reply to the issued notice/report, will I receive another notice?

Tax Official can send up to 3 reminders i.e. Reminder1/Reminder2/Reminder 3, if taxpayer doesn’t reply to the previously issued notice.

Example: Reminder 2 will be sent only after reminder 1 is sent and taxpayer hasn’t replied to it. Although there are three reminders 1/2/3 for each notice, individually such reminder notices will be sent only once.

8. Against a particular notice/report, is there any limit on the number of replies or counter-replies, I can file?

No, there is no limit on the number of replies or counter-replies, you can file against a single notice/report.

Viewing Report

9. From where can I view issued reports by Tax Official?

To view report issued against your case, navigate to Services User Services > View Additional Notices/Orders > click view hyperlink REPORT option.

Intimation to the Taxpayer

10. Do I receive any intimation about the notices/reports issued to me?

Yes, you will get intimation about the issuance of all notices/reports and orders through SMS and e-mail.

11. How is Tax Official intimated when a reply is filled?

Once reply is submitted by the taxpayer against the issued notice/report, it will be available to the tax official in reply folder of the particular case. Tax-officer can download the supporting documents and proceed with the case.

Types of Notice

12. How many types of notices can be issued to a Taxpayer?

Listed below are types of notices that can be issued to a taxpayer:

 

Nature of CommunicationPurpose of Communication
Notice for conducting Audit under u/s 65(3) ADT-01When a Tax Official issues Notice to initiate the audit of the taxpayer.
Rem1: Notice for conducting Audit under u/s 65(3) ADT-01When a Tax Official issues first reminder to the Taxpayer when they have not replied to the issued “Notice for conducting Audit under u/s 65(3) ADT-01” by the due date specified in the notice.
Rem2: Notice for conducting Audit under u/s 65(3) ADT-01When a Tax Official issues second reminder to the Taxpayer when they have not replied to the issued “Notice for conducting Audit under u/s 65(3) ADT-01” by the due date specified in the notice.
Rem3: Notice for conducting Audit under u/s 65(3) ADT-01When a Tax Official issues third reminder to the Taxpayer when they have not replied to the issued “Notice for conducting Audit under u/s 65(3) ADT-01” by the due date specified in the notice.
Notice calling Additional InformationWhen a Tax Official requires additional information they can use this functionality to issue notice to get additional information from the taxpayer.
Reminder 1: Notice calling Additional InformationWhen a Tax Official issues first reminder to the Taxpayer when they have not replied to the issued “Notice calling Additional Information” by the due date specified in the notice.
Reminder 2: Notice calling Additional InformationWhen a Tax Official issues third reminder to the Taxpayer when they have not replied to the issued “Notice calling Additional Information” by the due date specified in the notice.
Reminder 3: Notice calling Additional InformationWhen a Tax Official issues third reminder to the Taxpayer when they have not replied to the issued “Notice calling Additional Information” by the due date specified in the notice.
Audit: Notice for Discrepancy under rule 101(4)When a Tax Official issues notice of discrepancy to the taxpayer.
Rem1: Notice for Discrepancy under rule 101(4)When a Tax Official issues first reminder to the Taxpayer when they have not replied to the issued “Notice for Discrepancy under rule 101(4)” by the due date specified in the notice.
Rem 2: Notice for Discrepancy under rule 101(4)When a Tax Official issues second reminder to the Taxpayer when they have not replied to the issued “Notice for Discrepancy under rule 101(4)” by the due date specified in the notice.
Rem 3: Notice for Discrepancy under rule 101(4)When a Tax Official issues third reminder to the Taxpayer when they have not replied to the issued “Notice for Discrepancy under rule 101(4)” by the due date specified in the notice.
Audit: Addl. Notice for Disc. under rule 101(4)When a Tax Official issues additional notice of discrepancy to the Taxpayer.
Rem1: Audit: Add. Notice for Disc. under rule 101(4)When a Tax Official issues first reminder to the Taxpayer when they have not replies to the issued “Addl. Notice for Disc. under rule 101(4)” by the due date specified in the notice.
Rem2: Audit: Add. Notice for Disc. under rule 101(4)When a Tax Official issues second reminder to the Taxpayer when they have not replied to the issued “Addl. Notice for Disc. under rule 101(4)” by the due date specified in the notice.
Rem3: Audit: Add. Notice for Disc. under rule 101(4)When a Tax Official issues third reminder to the Taxpayer when they have not replied to the issued “Addl. Notice for Disc. under rule 101(4)” by the due date specified in the notice.
Audit: SCN u/s 73/74 and GST DRC-01When a Tax Official issues a notice, after issuing audit report, if detection amount is either not paid or short paid or taxpayer is not supporting the audit process.
SummonsWhen a Tax Official issues summons to the taxpayer, if the taxpayer doesn’t cooperate in the process of audit.
Reply to request for adjournment of AuditTax Official uses this form to either accept or reject Taxpayer’s request for adjournment of Audit by replying through this notice.

13. To which notices/reports can I reply?

You will have an option to reply for the following notices/reports:

  • Notice for conducting Audit u/s 65(3) (GST ADT-01)
  • Summons
  • Notice Calling Additional Information
  • Notice of Discrepancy under rule 101(4)
  • Additional Notice of Discrepancy under rule 101(4)
  • Audit Report u/s 65(6) (GST ADT-02)

Requesting for Adjournment

 

14. Can I receive extra time for document submission against a notice issued?

If you are not ready with the documents and want to request for some time to submit the document, you can request for adjournment of audit to the tax official.

 

Note: Request for Adjournment can be initiated only for Notice for conducting Audit under u/s 65(3) (GST ADT-01).

15. What is the maximum time I can get after requesting adjournment?

The maximum time that you can get after your request for adjournment is one year from issuance of Notice for conducting Audit under u/s 65(3) (GST ADT-01) date.

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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