The Maharashtra GST department has issued a circular permitting GST officers to conduct audit procedures offline for FY 2020-21. This includes issuing notices for discrepancies and final audit reports (GST-ADT-02) in physical form. However, all such communications must be uploaded to the GSTN portal by December 31, 2024, addressing system-related challenges that necessitated this deviation from the digital process.
For FY 2020-21, the audit reports will be shared offline due to technical difficulties faced by the GST department’s online systems. The show cause notices, however, will continue to be issued online. This change is critical as it aligns with the approaching deadline of November 30, 2024, for issuing GST notices under Section 73 of the GST Act.
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The circular, dated November 8, 2024, explains that due to IT-related issues, proper officers have been authorised to issue discrepancy notices under regulation 101(4) and final audit reports offline. As per the GST Act, these notices will not be served through the GSTN portal but via alternate methods prescribed under Section 169 of the Act.
The department clarified that this deviation does not extend the statutory limitation for Section 73 notices. Notably, for FY 2020-21, the timeline for such notices remains three years from the due date of filing annual returns, making February 28, 2025, the final date.
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Accordingly, notices should ideally be issued by November 30, 2024, to allow sufficient time for proceedings.
While discrepancy notices and audit reports are permitted offline, the subsequent show cause notices (GST-DRC-01), if required, must still be issued online. This ensures consistency in cases involving demand and recovery actions.
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The circular further directs proper officers to upload all manually issued notices and reports to the GSTN portal by December 31, 2024, ensuring proper record-keeping and taxpayer accessibility.
The switch to offline communication is attributed to grievances raised by GST officers over technical glitches in the online audit functionality. The department stated that this is a temporary measure to complete audits for FY 2020-21.
While the offline process is a step back from the GST system’s digital-first approach, but unavoidable given the circumstances. It may result in delivery delays or misplacement of documents, hindering timely action. Further, offline notices could lead to missed deadlines and slower response times compared to online systems. Taxpayers and officers may need to establish additional monitoring mechanisms.
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Taxpayers are advised to retain physical copies of notices and cross-verify them with portal records after December 31, 2024, when they are uploaded online.
Taxpayers subject to GST audits should be vigilant during this period. Retaining physical notices, reconciling filings, and addressing discrepancies promptly will be key to minimising scrutiny and ensuring compliance. Despite the offline process, the eventual online upload of notices and reports necessitates close monitoring to avoid confusion.
While the offline approach addresses immediate technical challenges, it reminds us of the need for better IT infrastructure for seamless GST audit processes.
For now, taxpayers are to adapt to the procedural changes and keep up with the ever changing regime.
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