Preparation of audit schedule - Goods And Services Tax Audit Manual 2019 [CBIC] - GST

4.3 Preparation of audit schedule: 4.3.1 Annual plan for Audit Coverage (Audit year being 1st April to 31st March): i. The Audit Commissionerate would release an Annual plan by 15th March, indicating the names of registered persons proposed to be audited during the course of the year (period from 1st April to 31st March of the next year) and the probable month in which the Audit officers would visit the units for verification of records. The Audit coverage (i.e. number of units selected for Audit in a year) may be calibrated with the manpower availability in a Commissionerate. The working strength of officers in Audit Commissionerate would be taken as the basis for calibration. After release of Annual plan by the Audit Commissionerate, concerned DC/AC In-charge of Circles may issue quarterly schedules and to constantly monitor conduct of audits to ensure that at the end of the year audit of all the units allocated is completed. Circle DC/AC can permit changes with reference to conduct of audit of any unit by allowing preponing / postponing from one month to another month/ from one quarter to another quarter. However, it shall be ensured that audit of all the units allocated by the Audit Commissionerate are completed by 31st March so that no single unit is left uncovered. ii. In order to ensure adequate coverage, the registered persons shall be categorized into three categories namely large, medium and small units. Given the past experience in detection of non- compliance and recovery of Tax through audits, it is suggested that Audit Groups may be deployed to cover large, medium and small units as discussed in Staffing Norms in para 3.6 above. While deploying officers due care should be taken, so that the staff is proportionately allocated to attend the audit work related to registered persons dealing with supply of goods and those dealing with supply of services based on revenue profile of the Commissionerate. iii. The criteria for categorizing a registered person as large, medium or small would be the total annual value of outward supplies (including export and exempt supplies). The threshold limits of value of outward supplies for categorizing the units into large, medium and small would be dependent upon (i) the available manpower in the Audit Commissionerate and (ii) the total no. of registered persons and turnover of each registered person in the jurisdiction of the Audit Commissionerate. It may be noted that threshold limits may vary from one Audit Commissionerate to another Audit Commissionerate in view of varying number of registered persons and quantum of value of outward supply by each registered person. The categorization of Registered Taxpayers would be done by the Directorate General of Audit. The methodology for categorization alongwith threshold limits would be communicated to the Audit Commissionerates by Directorate General of Audit during the month of January/February. iv. The scheduling can be reviewed half yearly for necessary adjustments, if any. The Directorate General of Audit will also periodically review and revise, wherever necessary, the criteria for categorizing the units into large, medium and small within each Zone / Commissionerate, manpower deployment in each category, composition of Audit Group and number of days required for audit in each category. The review/revision would be done in consultation with the Audit Commissionerates so as to ensure that Audit coverage by officers is made optimal. v. Principal Chief Commissioner / Chief Commissioner may allow temporary reallocation / diversion of officers amongst the Audit Commissionerates to ensure adequate Audit coverage of all categories of registered persons falling under the jurisdiction of the zone.