CBIC develops system to monitor GST audits initiated by tax authorities
of Central Board of Customs and Indirect Taxes (CBIC) To effectively monitor the audit process, we have established an online monitoring system for GST audits initiated by tax officers nationwide.
Tax authorities see the GST audit, which was launched earlier this year, as a useful tool to check the accuracy of tax returns filed, but also don’t want to overdo it on their part.
According to the latest information posted on the CBIC website, a dashboard and web-based tools have been established to track the progress of the audit from start to finish. This month, CBIC held a meeting of the national committee responsible for audits.
GST return audits have gained momentum since the board extended the deadline for filing annual returns during the COVID period. The government has also relaxed rules governing annual earnings and reconciliations for small businesses. Online monitoring of audits by tax authorities becomes important given that tax authorities decide to ensure that there is no revenue leakage while keeping the audit process from being cumbersome for taxpayers.
Since the introduction of GST in 2017, there has been a significant increase in tax return filings. This also suggests that more economic activity and transactions are being reported under the indirect tax regime.
In addition to GST audits conducted by businesses other than small businesses, GST authorities also audit businesses. Tax experts have noted an increase in the number of companies seeking guidance on issues arising from departmental audits in recent months.
Discrepancies between company-filed tax returns that provide a summary of transactions on which taxes are based and auto-generated returns for purchases of raw materials and services often lead to audits. For companies with a turnover of Rs. 200 crore or more in the last year, the audit requirement for annual reports is abolished and for companies with a turnover of Rs. Superseded by requirements. Or a cost accountant. The goal was to encourage voluntary compliance.
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