CBIC Developed an Online Monitoring System to Oversee GST Audits

The Central Board of Indirect Taxes and Customs (CBIC) has developed a system for online monitoring of Goods and Services Tax (GST) audits to oversee the audit process effectively. The department commenced GST audits last year and considered them an effective tool for ensuring the quality of the tax returns filed. Still, it also does not want any overreach by officials.

Also, CBIC posted on its website that they held a meeting earlier this month with commissioners across the country who are in charge of audits. It informed that they developed a web-based tool for monitoring the end-to-end progress of audits along with a dashboard.

CBIC started focusing on GST audits after giving extra time for filing annual returns during the covid period. It has also liberalised the norms relating to annual returns and reconciliation statements for small businesses.

GST return filing number has significantly improved due to more economic activity. Hence, the department introduced an online monitoring system that aims to plug revenue leakage and ensure the audit process does not become burdensome on taxpayers.

The department’s GST audit is in addition to the GST audits performed by professionals. However, last year, GST authorities liberalised the GST audit requirement for taxpayers having two crores turnover. Also, it introduced the self-certification of a reconciliation statement for taxpayers having more than five crores instead of certification from a chartered or cost accountant.

Also, in recent months, tax professionals have reported an increasing number of businesses seeking advice on issues arising from departmental audits. Few audits were triggered by mismatches between the GSTR-2A/2B, i.e., auto-populated return of inputs and input services and GSTR-3B, i.e., a summary return filed by a business.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in