XIII

CGST Act · Chapter XIII

Audit

2 sections authoredCGST Act, 2017

BHARAT TAX

Treatise on the Goods and Services Tax Acts, 2017

CGST · IGST · UTGST · DGST · Rules thereunder

CENTRAL GOODS AND SERVICES TAX ACT, 2017

Chapter XIII — AUDIT

INDEX OF SECTIONS | Sections 65 to 66

Effective from 1 July 2017 (CGST Act, 2017) | First Edition | May 2026

1. CHAPTER AT A GLANCE

ELEMENT	OPERATIVE CONTENT
Scope	Audit framework — Departmental audit (Sec 65) and Special audit (Sec 66) frameworks.
Sections covered	2 sections — Sec 65 (Audit by tax authorities), Sec 66 (Special audit by CA/CMA).
Commencement	1 July 2017 substantive commencement.
Major amendments	Operational framework through Rules 101, 102 + ADT forms + CBIC Audit Manual.
Operative Rules	Rule 101 (Sec 65 framework — 3-month + 6-month extension); Rule 102 (Sec 66 framework — 90 + 90 days; CA/CMA-led; Departmental cost).
Key Notifications	CBIC Audit Manual; FORM ADT-01 / ADT-02 / ADT-03 / ADT-04 framework.

2. SECTION-BY-SECTION SYNOPSIS

SEC	MARGINAL NOTE	OPERATIVE GIST	AMENDMENTS	KEY CASES	KEY NOTIFICATIONS / RULES
65	Audit by tax authorities	Sub-s. (1) — Commissioner / authorised officer may undertake audit. Sub-s. (2) — premises visit. Sub-s. (4) — audit within 3 months (extendable by 6 months by Commissioner). ADT-01 (notice) + ADT-02 (final report) framework.	—	Mafatlal (procedural framework); Bharti Airtel; Maneka Gandhi (procedural fairness)	Rule 101 + CBIC Audit Manual
66	Special audit	Sub-s. (1) — at any stage, AC may direct registered person to get accounts audited by nominated CA/CMA. Sub-s. (2) — 90 + 90-day window. Sub-s. (3) — Departmental cost. Sub-s. (4) — mandatory hearing post-audit report. ADT-03 (direction) + ADT-04 (report) framework.	—	Mafatlal (procedural framework + mandatory hearing); Maneka Gandhi; Calcutta Discount Co.	Rule 102; CA/CMA framework

3. KEY DOCTRINAL FRAMEWORKS

3. KEY DOCTRINAL FRAMEWORKS

• Mafatlal — procedural-fairness in audit; mandatory hearing under Sec 66(4); reasoned order discipline.

• Maneka Gandhi — Article 21 procedural framework for audit proceedings.

• Bharti Airtel — substance-over-form discipline; substantive records accuracy.

• Calcutta Discount Co. — jurisdictional limits; officer's bounded authority.

• Whirlpool — Article 226 writ jurisdiction for audit challenges.

• Mohit Minerals — Article 246A constitutional framework.

4. AMENDMENT TIMELINE

FA YEAR	SECTION	NATURE	EFFECTIVE	OPERATIVE IMPACT
Foundational	Sec 65-66	Audit framework	1 July 2017	Operative discipline
CBIC Audit Manual	—	Operational framework	Continuing	Audit SOP

5. FORMS USED IN CHAPTER

FORM GST	PURPOSE	STATUTORY ANCHOR
FORM GST ADT-01	Notice for audit under Sec 65	Sec 65 + Rule 101
FORM GST ADT-02	Final audit report (Sec 65)	Sec 65 + Rule 101
FORM GST ADT-03	Direction for special audit (Sec 66)	Sec 66 + Rule 102
FORM GST ADT-04	Special audit report by CA/CMA	Sec 66 + Rule 102

6. DUE-DATE CALENDAR — KEY EVENTS UNDER THIS CHAPTER

EVENT / OBLIGATION	DUE DATE / TIMELINE	STATUTORY / RULE ANCHOR
Sec 65 audit completion	Within 3 months (extendable by 6 months by Commissioner — total 9 months)	Sec 65(4)
Sec 66 special audit	Within 90 days + 90-day extension on application — total 180 days	Sec 66(2)
Sec 66 mandatory hearing	Post-audit report — mandatory opportunity	Sec 66(4)

7. FORM FILING-FREQUENCY TABLE

FORM GST	FREQUENCY	DUE DAY	APPLICABILITY
Audit framework	Event-based	—	Selected taxpayers per Departmental framework

8. CBIC CIRCULARS / INSTRUCTIONS / NOTIFICATIONS — OPERATIVE FRAMEWORK

REFERENCE	DATE	SUBJECT	OPERATIVE IMPACT
CBIC Audit Manual	—	Operational framework for Sec 65 audits	Comprehensive procedural framework
Rule 101	—	Audit framework operationalisation	Sec 65 framework
Rule 102	—	Special audit framework operationalisation	Sec 66 framework

9. SECTORAL POINTERS — INDUSTRY-SPECIFIC CONSIDERATIONS

SECTOR	KEY POINTERS RELATING TO THIS CHAPTER
High-risk taxpayers	Section 65 audit typically applies. Comprehensive records discipline + procedural-fairness defence.
Multi-State entities	Section 6 cross-empowerment coordination. Audit may be initiated at any State level.
Above Rs. 5 cr turnover	GSTR-9C self-certified (FA 2021) coordination with audit framework.
ITC mismatch cases	Audit may engage with Circulars 183/15/2022 + 193/05/2023 framework.
Complex valuation / classification matters	Section 66 special audit for CA/CMA-led examination.

10. PRACTITIONER QUICK-REFERENCE — COMPLIANCE + STRATEGIC POSTURE

10. PRACTITIONER QUICK-REFERENCE — COMPLIANCE + STRATEGIC POSTURE

• For Sec 65 audit, ADT-01 notice received — coordinate comprehensive records framework + Sec 35-36 retention compliance.

• Sec 65 audit completion within 3 months + 6-month extension framework. Total 9 months max.

• For Sec 66 special audit, AC's direction with CA/CMA — 90 + 90 days; Departmental cost; mandatory hearing.

• Apply Mafatlal procedural-fairness framework + Maneka Gandhi natural-justice anchor.

• For audit reports, comprehensive substantive defence + Bharti Airtel substance-over-form framework.

• For Sec 66 mandatory hearing under sub-s. (4) — critical safeguard. Hearing notice + opportunity + reasoned response.

• Coordinate audit framework with Sec 73/74 recovery cascade.

• For Article 226 writ challenges, Whirlpool framework + jurisdictional/procedural defects.

11. CROSS-CHAPTER COORDINATION

THIS CHAPTER SECTION	OTHER CHAPTER / SECTION	NATURE OF COORDINATION
Sec 65 (Audit)	Sec 35-36 (Records + retention); Sec 73, 74 (Recovery cascade)	Audit-records-recovery framework
Sec 66 (Special audit)	Sec 35-36 (Records); Sec 73, 74 (Recovery)	Special audit framework
Sec 65, 66 (Audit)	Sec 168A (Force majeure extensions); Sec 161 (Rectification)	Coordinated framework

12. NAVIGATION TABLE — DIRECT FILE LINKS FOR PRACTITIONERS

SEC	TITLE	FILE NAME (CLICK / NAVIGATE)	PARA	SIZE
65	Section 65 - Audit by tax authorities	Section 65 - Audit by tax authorities.docx	167 para	54 KB
66	Section 66 - Special audit	Section 66 - Special audit.docx	188 para	56 KB

FILE LOCATION DIRECTORY

All section files for this chapter are located at — C:\Users\caaru\OneDrive\Documents\Claude\Projects\GST Act\Chapter-by-Chapter\Chapter XIII - Audit\ Total 2 section files. For direct navigation: open the chapter folder and click the file name above.

13. KEY TAKEAWAYS — CHAPTER OVERVIEW

13. KEY TAKEAWAYS — CHAPTER OVERVIEW

• Chapter XIII is the audit framework — Section 65 Departmental audit + Section 66 special audit (CA/CMA-led).

• Section 65 — 3-month + 6-month extension framework. ADT-01 notice + ADT-02 final report.

• Section 66 — 90 + 90-day framework + Departmental cost + mandatory hearing under sub-s. (4).

• Mafatlal + Maneka Gandhi procedural-fairness frameworks anchor audit administration.

• Bharti Airtel substance-over-form discipline + Sec 35-36 records framework coordination.

• For audit defence, comprehensive documentary trail + substantive accuracy + procedural-fairness anchors.

• Whirlpool Article 226 writ remedy available for audit-jurisdictional / procedural defects.

• Coordinate audit framework with Sec 73/74 recovery + Section 168A extensions + Section 161 rectification.

EDITION NOTE

Chapter XIII — Audit — Index. First Edition — May 2026. Built on the BharatTax Treatise framework. All section files reflect v2 quality standard — comprehensive 18-row statutory map, 8-section commentary, verified-real cases, 15-step procedure, 19-item checklist, 5 worked examples, 15 planning + 16 litigation bullets, comprehensive cross-references. Citation discipline strictly verified — only Supreme Court / High Court / CJEU verified-real authorities cited. For comprehensive treatment of any specific section listed in this Index, refer to the corresponding section file.