Govt explains the Concepts of Special Audit, Provisional Assessment, Debit Notes & Credit Notes under GST [Read Concept]

Income Tax

In a recent document released by the Central Board of Excise and Customs (CBEC), the Government explained the concepts of Special Audit, Provisional Assessment, Debit Notes and Credit Notes under the Goods and Services Tax (GST) regime.

It stated that the GST law envisages three types of Audits. First Audit is by a Chartered Accountant or Cost Accountant. Every registered person whose aggregate turnover during a financial year exceeds two crore rupees has to get his accounts audited by a chartered accountant or a cost accountant and furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C.

Second one covers a normal audit under which the Commissioner or any officer authorised by him, can undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.

The third type of audit is called the Special Audit. In Special Audit the registered person can be directed to get his records including books of account examined and audited by a chartered accountant or a cost accountant during any stage of scrutiny, inquiry, investigation or any other proceedings depending upon the complexity of the case. It also explains the procedure for Special audit under the new tax regime.

It further explained the concept and procedure for provisional assessment in detail.

The Asst. Commissioner/Dy. Commissioner of Central Tax provisionally determines the amount of tax payable by the supplier and is subject to final determination. On provisional assessment, the supplier can pay tax on provisional basis but only after he executes a bond with security, binding them for payment of the difference between the amount of tax as may be finally assessed and the amount of tax provisionally assessed. On finalization of the provisional assessment, any amount that has been paid on the basis of such assessment is to be adjusted against the amount that has been finally determined as payable. In case of short payment, the same has to be paid with interest and incase of excess payment, the same will be refunded with interest.

Read the full text of the Concept below.

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