Audit by tax authorities
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 65 of the Central Goods and Services Tax Act, 2017 deals with audit by tax authorities. The Commissioner or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed. The Act was enacted on 12 Apr 2017.
(1) The Commissioner or any officer authorised by him, by way of a general or a specific order, may undertake audit of any registered person for such period, at such frequency and in such manner as may be prescribed.
(2) The officers referred to in sub-section (1) may conduct audit at the place of business of the registered person or in their office.
(3) The registered person shall be informed by way of a notice not less than fifteen working days prior to the conduct of audit in such manner as may be prescribed.
(4) The audit under sub-section (1) shall be completed within a period of three months from the date of commencement of the audit:
Provided that where the Commissioner is satisfied that audit in respect of such registered person cannot be completed within three months, he may, for the reasons to be recorded in writing, extend the period by a further period not exceeding six months.
Explanation.--- For the purposes of this sub-section, the expression "commencement of audit" shall mean the date on which the records and other documents, called for by the tax authorities, are made available by the registered person or the actual institution of audit at the place of business, whichever is later.
(5) During the course of audit, the authorised officer may require the registered person,--
(i) to afford him the necessary facility to verify the books of account or other documents as he may require;
(ii) to furnish such information as he may require and render assistance for timely completion of the audit.
(6) On conclusion of audit, the proper officer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations and the reasons for such findings.
(7) Where the audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section 73 or section 74 1[or section 74A].
Section 65, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 73 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
- s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
- s. 74A Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Rajive and Company v. Deputy Commissioner (Audit) & Ors.
Court's Decision & Legal Precedent
Documents for commencing audit are distinct from documents sought during audit; audit enquiry notice itself proves commencement already occurred — belated ADT-02 beyond three months violates s.65(4). Nonetheless, a late audit report does not by itself vitiate s.73/74 SCNs, because audit is not a precondition to those proceedings; appeal dismissed on that independent ground.
On this section: Authoritative DB teaching on s.65(4) commencement timing and the limited effect of a belated audit on s.73/74 jurisdiction.
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Rajive and Company v. Deputy Commissioner (Audit) & Ors.
Court's Decision & Legal Precedent
Under the Explanation to s.65(4), 'commencement of audit' is the later of document production or actual institution; additional documents produced on 09.04.2024 postponed commencement, so ADT-02 dated 08.07.2024 was within three months — challenge to audit/SCNs on limitation dismissed (later refined on appeal).
On this section: First-instance construction of s.65(4) Explanation on when audit 'commences' for the three-month clock.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 65
What have the courts held on Section 65 of the Central Goods and Services Tax Act?
Rajive and Company v. Deputy Commissioner (Audit) & Ors. (07 Jan 2025) is the leading judgment on this section among those set out below: Authoritative DB teaching on s.65(4) commencement timing and the limited effect of a belated audit on s.73/74 jurisdiction. Another 1 judgment on this section is set out below. They run from 2024 to 2025.
How do I find court cases under Section 65 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 65, section 65 CGST Act, section 65 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Rajive and Company v. Deputy Commissioner (Audit) & Ors. (07 Jan 2025).
What should I read with Section 65 of the Central Goods and Services Tax Act, and has it changed?
Its own text turns on section 73 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts), section 74 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts), section 74A (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. 2 instruments name it without being made under it, most recently Circular No. 51/25/2018-GST dated 31.07.2018 (2018), then Circular No. 3/3/2017 - GST dated 05.07.2017 (2017).
When was Section 65 of the Central Goods and Services Tax Act enacted?
Section 65 of the Central Goods and Services Tax Act, cited as CGST Act 65, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.