The Central Government plans to establish an internet-based audit system for the Goods and Services Tax (GST). This move comes in response to reports of large corporations engaging in anti-competitive activities. To enhance efficiency and address these concerns, the government has opted for this course of action.
The online audit mechanism offers a modern and technology-driven approach to tax auditing, benefiting both the government and taxpayers by enhancing accuracy, transparency, and efficiency in the GST compliance process.
The Parliamentary panel has proposed the adoption of an online audit mechanism to enhance the efficiency and non-intrusiveness of the process. The panel has urged the government to create a white list of documents necessary for conducting an online audit. This list would serve as a guidance note for both officers and taxpayers during the auditing process.
The Committee of Officers (CoO) of GST Audits has prepared a GST audit manual 2023. A Committee of Officers (CoO) on GST Audit was constituted by the GST Council Secretariat, comprising officers from the CBIC, States, GSTN and GST Council secretariat.
In the pre-GST regime, the audit process of States/UTs often got lengthened due to procurement and production of various statutory forms by the auditees in order to claim statutory deductions in the States/UTs. The GST regime does not require production of any such statutory forms and hence it is expected that substantial time of both the auditor and the auditee would be saved.
Furthermore, the committee has recommended the installation of cameras in the interrogation rooms to prevent any instances of physical assaults or harassment of taxpayers by officers. By implementing an online audit mechanism, the committee foresees improved efficiency and reduced complexity in the auditing process.
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