Introduction:
The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is “Audit”.
So what do you mean by “Audit”?
Section 2(13) of CGST Act, 2017 –“Audit”means the examination of records, returns and other documents
maintained or furnished by the registered person under this Act or the rules made
thereunder or under any other law for the time being in force to verify the correctness
of turnover declared, taxes paid, refund claimed and input tax credit availed, and to
assess his compliance with the provisions of this Act or the rules made thereunder;
Conclusion:
Hence, it is understood that Audit maintains the records,returns and other documents maintained or furnished by the registered person.verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to
assess his compliance with the provisions of this Act or the rules made thereunder;