The Gujarat High Court ruled that a GST audit is valid if the final report is issued within three months of commencement, even with multiple ADT-01 notices. The department must inform taxpayers of missing documents.
Gujarat HC Upholds Validity of GST Audit With Timely Report Submission
The Gujarat High Court has upheld the validity of a GST audit conducted under Section 65 of the CGST Act, holding that issuance of multiple ADT-01 notices does not invalidate proceedings, provided the final audit report is furnished within three months of the audit’s commencement.
The court emphasized procedural fairness, directing that the department is bound to inform registered persons of missing documents to enable compliance. Relying on Commissioner of CGST v. M/s Alfa Tea Co., it ruled that failure to issue a proper notice renders the audit proceedings vitiated. However, in this case, the taxpayer had been adequately informed and had availed opportunity of hearing.
The decision clarifies timelines under Section 65 and reinforces transparency in audits. Practitioners must ensure responses to ADT-01 notices are prompt and document all correspondence, as due notice is now a key validity checkpoint.
Citations
- CGST Act, 2017, Section 65
