Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
How it begins
A departmental audit under Section 65 starts with an ADT-01 notice giving you advance intimation and a list of records sought — returns, invoices, ledgers, ITC reconciliations and financial statements. The officer (or a team) then examines them, at your premises or remotely.
What they check and conclude
The focus is usually output tax vs returns, ITC vs GSTR-2B, reversals, RCM, and classification. Findings are issued in ADT-02; where tax is found short, a demand (DRC-01) can follow. The audit should be completed within a set period. Confirm the current timelines.
How to handle it — an example
Example: on an ADT-01, a business presents tidy monthly reconciliations of GSTR-1/3B/2B, its RCM register and ITC workings — the audit closes with minor or no adjustments. A business with messy records, by contrast, faces estimates and a demand. Preparing the reconciliations before trouble, not during, is what makes an audit smooth. Our team can audit-proof your GST records and represent you.