Purpose of the Manual - Manual for Quality Assurance Review (QAR) and Audit Performance Index (API), 2021 [CBIC] - GST

1.3 PURPOSE OF THE MANUAL After the introduction of GST from 1st July, 2017, GSTAM 2019 was issued by this Directorate envisaging the audit process to be followed for conduct of GST audits. This manual is prepared in order to evaluate the qualitative and quantitative performance of the GST audits conducted by the Audit Commissionerates through QAR and API respectively. Hence, the evaluation of legacy audits related to Central Excise and Service Tax shall not be part of QAR process detailed in this manual. 1.3.1 SCOPE OF THE MANUAL i. The manual lays down instructions, policies and procedures related to the QAR of GST Audits, carried out by the Audit Commissionerates. ii. Guidelines provided herein are intended to ensure that QARs of GST audits are carried out in a uniform, comprehensive, transparent and professional manner. iii. The manual contains the methodology for conducting QARs. The manual defines the composition, functions and responsibilities of the review team and prescribes standard formats for the collection of information and reporting of the outcome of such reviews. The assessment report along with the major observations is presented to the jurisdictional Chief Commissioner and Commissioner to bring to their notice the existing level of audit quality for improvements, if any. iv. The manual provides guidance to the review officers (QAR team) through a set of published audit quality parameters for uniform assessment. v. The manual seeks to promote an enhanced understanding, amongst the Audit Commissionerates, of the audit quality framework and standards, against which their performance will be measured. It also promotes adoption of these quality standards for improvement in their performance of the audit vi. The manual provides for grading the Commissionerates on the basis of the audit results viz., audit detections, recoveries and productivity per audit carried out on quarterly and annual basis in the form of API. vii. The manual provides for measuring the qualitative evaluation of audits at the end of the audit year by way of QAR and quantitative evaluation of audits at the end of each quarter through API. The performance of the Audit Commissionerates is assessed on a collective basis through composite grading of QAR and API for the entire audit year. viii. The manual enables to showcase the achievements of all Audit Commissionerates on the whole, and their relative positions on all- India basis for a particular audit year vis- -vis other Audit Commissionerates.