Friday, September 24, 2021
HomeGSTKarnataka GST Department lays down procedure for e-Audit of high risk cases

Karnataka GST Department lays down procedure for e-Audit of high risk cases

Department of Commercial Taxes issued a Circular  No: GST-14 12020-21 regarding Salient features of KGST Act,2017 – e-Shodane (electronic Scrutiny of High-risk cases, Audit Observations & DRC under Assessment module)

Selection and Assignment of Cases for Audit/Assessment:

Wild card selection: If the proper officer, either by information or through other sources comes across cases wherein there is scope for additional revenue involvement and or due Liability on the part of the supplier/recipient and such cases are not listed under risk-based scrutiny, the proper officer may request for assignment of such cases of respective jurisdiction for audit after consultation with respective Joint Commissioner, providing valid reasons for such selection.
Risk-Based Scrutiny: The system will assign the audit cases based on the following risk factors to the Audit Officers:

1 Total output tax declared in Form GSTR 1 is more than declared in Form GSTR-3B
2.  Total ITC declared in Form-3B is more than that declared in Form GSTR-2A
3 Service for case having more than Rs 10 crore aggregate turnover per year
4 Transitional input Credit carried forward from the earlier tax regime
5 If ITC availed in Form GSTR-3B filed after 23/04/2019 for the FY
6 Top taxpayer dealing in evasion prone commodities
7 Input tax credit blocked cases
Refund sanctioned by the LGSTOs/SGSTos Manual Refund process (Up to 25/09/2019)
9 Refund sanctioned by the LGSTOs/SGSTOs under online Refund process (after 26/09/2019)
10 Cases having enforcement reports
Generally,  an Audit Officer will be having Twenty cases for disposal at any given point in time.
The Audit officer may conduct the Audit either at the place of business of the Registered Person or at his/her office as provided u/s 65(2).
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TaxClue Team
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

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