Special audit
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 66 of the Central Goods and Services Tax Act, 2017 deals with special audit. If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or t The Act was enacted on 12 Apr 2017.
(1) If at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.
(2) The chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified:
Provided that the Assistant Commissioner may, on an application made to him in this behalf by the registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been audited under any other provisions of this Act or any other law for the time being in force.
(4) The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub-section (1) which is proposed to be used in any proceedings against him under this Act or the rules made thereunder.
(5) The expenses of the examination and audit of records under sub-section (1), including the remuneration of such chartered accountant or cost accountant, shall be determined and paid by the Commissioner and such determination shall be final.
(6) Where the special 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 66, 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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Procter and Gamble Home Products Private Limited v. Goods and Services Tax Council & Ors.
Court's Decision & Legal Precedent
Where assessee was not afforded proper hearing to contest non-satisfaction of s.66 special-audit conditions on merits, adjudication order is set aside and SCN must be replied to on both s.66 conditions and merits; validity of linked 168A notifications left open subject to SC/batch outcomes.
On this section: Protects hearing rights when challenging whether s.66 special-audit preconditions are met before demand crystallises.
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DHL Express India Private Limited v. Goods and Services Tax Council & Ors.
Court's Decision & Legal Precedent
Parallel to P&G: despite Department claim that reply was considered, Court finds inadequate hearing on s.66 audit-condition challenge; order set aside for fresh reply on s.66 conditions and merits, with 168A vires left open.
On this section: Same s.66 special-audit hearing doctrine as companion P&G matter same day.
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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Delhi Zone and Respondent No. 2 i.e., Principal Commissioner (State Tax – GST), Government of NCT of Delhi, Department of Trade & Taxes for conducting audit of the books of the Respondent No. 3 i.e., Mr. Chirag Gupta under provisions of Section 65 and Section 66 of the Central Goods and Services Tax (CGST), Rule 2017. C. Any other order or direction as the Hon'ble Court may deem fit and proper in the facts and circumstances of the case, may be also passed in favour of the Petitioner." 2. As is ex facie evident from the record, the petitioner has a private grievance …
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 66
What have the courts held on Section 66 of the Central Goods and Services Tax Act?
Procter and Gamble Home Products Private Limited v. Goods and Services Tax Council & Ors. (05 May 2025) is the leading judgment on this section among those set out below: Protects hearing rights when challenging whether s.66 special-audit preconditions are met before demand crystallises. Another 1 judgment on this section is set out below.
How do I find court cases under Section 66 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 66, section 66 CGST Act, section 66 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 Procter and Gamble Home Products Private Limited v. Goods and Services Tax Council & Ors. (05 May 2025).
What should I read with Section 66 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. 3 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently Circular No. 3/3/2017 - GST dated 05.07.2017 (2017).
When was Section 66 of the Central Goods and Services Tax Act enacted?
Section 66 of the Central Goods and Services Tax Act, cited as CGST Act 66, 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 15 Oct 2026. This page is not a substitute for legal advice.