In a bid to alleviate the burden on taxpayers and streamline the audit process, Central and state Goods and Services Tax (GST) officials have initiated joint GST audits of businesses under the indirect tax regime starting this financial year. This collaborative effort aims to eliminate duplicate notices and dual investigations, offering much-needed relief to taxpayers.
Industry estimates suggest that around 11,000 cases are currently subject to dual investigation or litigation by both central and state authorities. To address this issue, central GST zonal heads have issued an internal communication urging officials to involve state counterparts in ongoing audits for enhanced coordination.
The recommendation for this audit coordination was made during a recent national coordination meeting aimed at simplifying tax investigations, according to officials who preferred to remain anonymous. As part of this initiative, officers from central GST may join state GST audit teams to facilitate the exchange of critical compliance-related information.
‘This exercise will bolster the audit capabilities of SGST officers and foster the exchange of vital information among officials,’ stated the communique.
The Central Board of Indirect Taxes and Customs (CBIC) has instructed each zone to devise its framework for conducting joint GST audits. Officials have conveyed a general directive to zonal heads, who will implement it in their respective jurisdictions, with the expectation that it will save time and resources.
Experts anticipate that the initiative will lead to a fairer and more precise audit process, benefiting both tax authorities and taxpayers alike. By integrating central and state efforts, the initiative aims to minimise duplication of efforts and ensure that taxpayers are not subjected to multiple audits for the same issue.
CBIC has directed its field officers to focus on investigating violations that state GST officials are already addressing or have issued notices for, further streamlining the audit process and enhancing efficiency. This collaborative approach marks a significant step forward in simplifying tax compliance procedures and fostering greater transparency in the indirect tax regime.
Vakilsearch experts underscore the significance of the collaborative effort between Central and state goods and services tax (GST) officials in initiating joint GST audits of businesses under the indirect tax regime. This proactive approach aims to alleviate the burden on taxpayers while streamlining the audit process, ultimately offering much-needed relief. This collaborative approach marks a significant step forward in simplifying tax compliance procedures and promoting transparency in the indirect tax regime. For more GST related information or GST filing and registration get on call with our experts today.
