Audit
Rule 101 of the CGST Rules
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Departmental audit under section 65 covers a financial year or part of it: notice in ADT-01 fifteen working days in advance, the audit completed within three months (extendable by six), discrepancies put to the taxpayer for reply, and findings communicated in ADT-02 within thirty days of completion.
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The exact words of the law
1,545 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(1) The period of audit to be conducted under sub-section
(1) of section 65 shall be a financial year 1 [or part thereof] or multiples thereof.
(2) Where it is decided to undertake the audit of a registered person in accordance with the provisions of section 65 , the proper officer shall issue a notice in FORM GST ADT-01 in accordance with the provisions of sub-section
(3) of the said section.
(3) The proper officer authorised to conduct audit of the records and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are maintained and the returns and statements furnished under the provisions of the Act and the rules made thereunder, the correctness of the turnover, exemptions and deductions claimed, the rate of tax applied in respect of the supply of goods or services or both, the input tax credit availed and utilised ,refund claimed, and other relevant issues and record the observations in his audit notes.
(4) The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and the said person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply furnished.
(5) On conclusion of the audit, the proper officer shall inform the findings of audit to the registered person in accordance with the provisions of sub-section
(6) of section 65 in FORM GST ADT-02 .
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2018-12-31 · Inserted
74/2018-CTdated31
Inserted vide Notification No.74/2018-CT dated 31.12.2018.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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