CBIC issues instruction on non/partial production of records/information for C&AG Audit
CBIC has issued Instruction No. 05/2025-GST dated 02.05.2025 to ensure timely production of records/information for C&AG audit.
C&AG in its Audit Report – Indirect Taxes – GST (Report No. 7 of 2024) has stated the fact of non / partial production of records by GST offices.
As per C&AG report, in spite of requisitions and follow up, the jurisdictional GST Ranges did not produce basic records such as financial statements, GSTR-9C and GSTR-2A in 67 cases out of the sample of 1,103 cases. Thus, 6 per cent of the sample could not be audited. Further, in another 373 cases comprising 34 per cent of the risk based sample, records were partially produced as granular taxpayer records, such as invoices, were not provided. Consequently, C&AG in these partially produced cases has to qualify it audit findings in view of the restriction to the information available in the returns filed by the taxpayers. Further, substantial scope limitation was experienced while auditing Transitional Credits under GST even during the supplementary audit. Out of sample of 3,163 cases (954 cases not produced earlier and 2,209 records partially produced earlier), records were not provided in respect of 362 claims (nonproduction) and 1,344 claims (partial production).
CBIC has taken a serious view of the C&AG findings and has issued Instruction to all Principal Chief Commissioners / Chief Commissioners and Principal Director Generals/Director Generals.
The attention is drawn to Article 149 of the Constitution of India, which empowers the C&AG to conduct audit of government accounts, public sector undertakings, and other entities funded or controlled by the Central or State governments. It has been stated that it is sine qua non for the field formations to provide the records/ information available with them and/ or required to be maintained by the field formations.
The said heads have been advised to ensure that the officers under their jurisdiction are suitably sensitized/ instructed to expeditiously provide the records/ information available with them/ required to be maintained by them, to the C&AG audit team, as and when required.
Further, it has been instructed that the jurisdictional officers to be directed that in cases where the documents sought by the audit team are available with the taxpayer, a letter may be sent to the concerned taxpayer requesting that they provide the documents expeditiously.
Download Instruction No. 05/2025-GST Click Here >>
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