Audit Consequences - Model All India GST Audit Manual 2023 [CBIC] - GST

CHAPTER 6 This chapter covers follow up of audit. 6.1 Audit Consequences After receipt of the FAR, the auditee may agree to the audit observations in full, or he may disagree in full or he may even agree to a part of the observations made. In case of full or partial agreement, the audit officer should encourage the auditee to make voluntary payment of the dues in Form GST DRC 03 as detected in the course of audit. Where the RTP agrees with the short levy as per the show cause notice, the auditor should explain the benefits available u/s 73(6) / 74(6) of the SGST/ CGST Act , as the case may be. Now, the observations made in the FAR may be of 2 types: Those of technical nature and not having any real revenue impact. Those having revenue impact, i.e. short payment of tax, interest etc. by the auditee. Technical lapses by the RTP which do not have any revenue implication, and have occurred out of oversight or ignorance, should be allowed for correction (if required).