Government to reopen Financial Year 2017-2018 accounts for fresh audit

Government to reopen Financial Year 2017-2018 accounts for fresh audit

Government to reopen Financial Year 2017-2018 accounts for fresh audit

It has been near about close to 3 years considering the time of the roll-out of the biggest indirect tax restructuring, the Goods and Services Tax (GST). The government had currently launched a massive enforcement drive, pan-India with a purpose to check tax evasion as well as re-confirm false credits.

The taxman had begun issuing GST audit notices towards taxpayers for the first year of the roll-out, that is GST Financial Year 2017-2018.

In accordance with a copy of the tax notice reviewed through CNBC-TV18, the taxman had invoked section 65 of the CGST Act for an audit of accounts and records including the period of 2017-2018 (July-March) or from the date of the last audit to 2017-2018.

This audit drive as per sources would take place all over the nation during January and February 2020, post which a thorough field-wise report shall also be submitted to the centre, emphasizing weeding out tax evaders and false refunds and credit claimants.

The taxman in the notice had also summoned the taxpayers in order to come with complete records of as many as 12 documents, with an immediate appearance in person with the taxman.

These documents as per the notices consist of many GST forms, income tax papers, input service invoices, electronic cash or credit ledger, business agreements of sales and purchase, etc.

It is also held that this move was not exactly unexpected move carried out by the taxman.

For 2017-2018 the GST audit report was supposed to be filed by the companies initially by December 2018. Then it has been extended and presently the revised final timeline is expected 31st January 2020. So, it has been extended many times. Also, the industry at present cannot say that this move is unexpected, or they were not be expecting it. Thus, it was held that the companies must have been prepared for this earlier.

eStartIndia is the professional tech-based online legal services providing platform which assists the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any additional legal compliance and services related to the business in India.


eStartIndia Team

Leave a Comment

Previous Comments

Related Blogs