Govt to set up online GST audit mechanism: The sources claims that government is soon going to set up online GST audit mechanism in light of the issue of the GST fake registration, bogus billing and frauds, wherein taxpayers are required to provide a substantial amount of documentation in order to conduct an audit.
The GST Audit Manual, published by the Central Board of Indirect Taxes and Customs, outlines the standard formats, deadlines, and list of documents needed to conduct an audit.
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As recommended by a legislative panel in its report on “anti-competitive practices by the big tech companies,” the Union government will establish an online audit system under the Goods and Services Tax (GST) in order to speed the procedure.
The report further states that, “The recommendation for the creation of an online audit tool has been accepted by the ministry. The committee would anticipate that the ministry will take this matter seriously in an effort to improve the GST audit procedure.” The standing committee on finance also stated in its report that it “desires to be informed of the results of this undertaking at the time of furnishing the final action taken statement.”
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The GST Audit Manual, which lists the standard formats and documentation needed to conduct an audit, was released by the Central Board of Indirect Taxes and Customs. Email can be used to submit copies of the paperwork and records that must be turned in for the audit. If any clarification is required from the taxpayer, it may be provided via email.
The corporate affairs ministry responded to the panel’s recommendation by stating, “From a systems perspective, the current audit functionality provides the feasibility for conducting the audit online wherein the taxpayer as well as the tax officer can upload the required documents for further examination.”
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The advice was made because of the concerns over GST audits, where taxpayers are required to provide a substantial amount of documentation in order to conduct an audit. Additionally, the assesses are also required to attend in person at the GST offices, which takes a lot of time from both the assesses and the officials.
The panel recommended the online audit system under GST to improve the procedure and make it less intrusive.
A white list of the documents needed to undertake an online audit, which would serve as a guide for officers and the assessee, has been requested by the legislative panel.
In order to prevent harassment of honest taxpayers during searches and seizures, the committee has recommended some measures along with installing CCTV cameras in the interrogation room. The corporate affairs ministry has instructed CBIC to do so.
This GST Audit mechanism will reduce frauds and fake invoicing happening in multiple industries.
It has also been seen that CBIC has shortlisted 50,000 fresh cases that will be taken up for GST audit in this Financial year to increase the compliances and tax base.
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