Chapter XIII - Audit
Section 66
Section 66: Special audit
Section 66 allows a Commissioner-approved special audit by a nominated chartered or cost accountant where value or credit concerns arise in proceedings.
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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) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.
(2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified: Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force.
(4) The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings against him under this Act or the rules made thereunder.
(5) The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final.
(6) Where the special 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
A special audit can be directed during scrutiny, inquiry, investigation or other proceedings when the case is complex and value or credit appears problematic.
Key takeaways
Decision and approval
An officer of at least Assistant Commissioner rank needs prior Commissioner approval and communicates a written direction.
Independent professional
A Commissioner-nominated chartered or cost accountant audits the records and reports within ninety days, extendable by a further ninety days for sufficient reason.
Safeguards and cost
The registered person gets a hearing opportunity before special-audit material is used against them. Audit cost is determined and paid by the Commissioner.
Further action
An adverse finding can lead to a separate tax determination under sections 73, 74 or 74A.
Decision and approval
An officer of at least Assistant Commissioner rank needs prior Commissioner approval and communicates a written direction.
Independent professional
A Commissioner-nominated chartered or cost accountant audits the records and reports within ninety days, extendable by a further ninety days for sufficient reason.
Safeguards and cost
The registered person gets a hearing opportunity before special-audit material is used against them. Audit cost is determined and paid by the Commissioner.
Further action
An adverse finding can lead to a separate tax determination under sections 73, 74 or 74A.
Practical checklist
Do
- Review the written direction and Commissioner approval.
- Provide records to the nominated professional.
- Track report timing and respond before adverse material is used.
Avoid
- Assume a prescribed or notified detail without checking the applicable current instrument.
Frequently asked questions
Does an earlier statutory audit prevent a section 66 audit?
No. The section can operate despite an audit under another provision or law.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026