CAG needs provision empowering to seek any information for Audit in GST Act

Accommodation Services - Anti-Profiteering Rules - GST - Taxscan

As government pallning to roll-out GST from July 1 2017, Comptroller and Auditor General (CAG) has demanded explicit provision in the law to empower the official auditor to call for any information for audit of Goods and Service Tax (GST) receipts and utilisation of their funds.

While the Comptroller and Auditor General of India (CAG) by law audit any receipts in the Consolidated Funds of India, the GST Council is not in favour of giving powers to the official auditor under the new GST law to call for information outside of the GST tax receipt for audit.

Section 65 of the draft model GST law provides for power of CAG to call for information for audit. The section as it exists, provides that revenue officer would make available to the CAG “information, records and returns required for conduct of audit.”

Reportedly, CAG is of the opinion that insertion of provisions enabling powers to departmental officers in the GST law to call for any other information to facilitate the audit is very important, otherwise an assessee may legally challenge the calling for additional information for CAG audit.