Chapter XIII - Audit
Section 65
Section 65: Audit by tax authorities
Section 65 authorises departmental audit of registered persons, sets notice and completion periods and requires written communication of findings.
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This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Commissioner or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.
(2) The officers referred to in sub-section (1) may conduct audit at the place of business of the registered person or in their office.
(3) The registered person shall be informed by way of a notice not less than fifteen working days prior to the conduct of audit in such manner as may be prescribed.
(4) The audit under sub-section (1) shall be completed within a period of three months from the date of commencement of the audit: Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months.
Explanation.––For the purposes of this sub-section, the expression “commencement of audit” shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later.
(5) During the course of audit, the authorised officer may require the registered person,— (i) to afford him the necessary facility to verify the books of account or other documents as he may require; (ii) to furnish such information as he may require and render assistance for timely completion of the audit.
(6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings.
(7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section 73 or section 74 or section 74A.
Introduction
The Commissioner or an authorised officer can audit a registered person’s GST records at the business premises or departmental office.
Key takeaways
Notice and scope
The person receives at least fifteen working days’ notice; period, frequency and manner follow the Rules.
Duration
Audit is ordinarily completed within three months of commencement. The Commissioner can record reasons and extend it by up to six months. Commencement uses the later of records being made available or actual on-site institution.
Records and findings
The person must facilitate inspection and provide information. Within thirty days after conclusion, the officer communicates findings, reasons, rights and obligations.
Further action
Detected unpaid or short-paid tax, erroneous refund or wrongful ITC may lead to determination under section 73, 74 or 74A as applicable.
Notice and scope
The person receives at least fifteen working days’ notice; period, frequency and manner follow the Rules.
Duration
Audit is ordinarily completed within three months of commencement. The Commissioner can record reasons and extend it by up to six months. Commencement uses the later of records being made available or actual on-site institution.
Records and findings
The person must facilitate inspection and provide information. Within thirty days after conclusion, the officer communicates findings, reasons, rights and obligations.
Further action
Detected unpaid or short-paid tax, erroneous refund or wrongful ITC may lead to determination under section 73, 74 or 74A as applicable.
Practical checklist
Do
- Verify authorisation and audit notice.
- Organise books, returns, invoices and ITC records.
- Track statutory commencement, completion and findings dates.
Avoid
- Assume a prescribed or notified detail without checking the applicable current instrument.
Frequently asked questions
Can a GST audit be conducted at the tax office?
Yes. Section 65(2) permits audit at the person’s place of business or in the officers’ office.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026