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CBIC to Move to Desk-based Filing for Small Taxpayers

CBIC to Move to Desk-based Filing for Small Taxpayers

The risk Parameters has been developed by the audit department of CBIC (Central Board of Indirect Taxes for choosing taxpayers based on the annual returns to be audited. In the detailed letter, the department has initiated officials to shift to Desk-based Filing instead of the traditional method of audits, especially for the small taxpayers. The department also pointed out that medium and large taxpayer to continue with the premise-based audit.

Moreover, Premise-based audit must be commenced in a time-bound method to make sure about the closer within the restricted time period of 3 months from the date of commencement. GST audits were scheduled earlier to begin from 1st July for those taxpayers who have applied for their GST annual return. However, according to the GST meeting conducted on 21st June, GST Council has also the extended date for filing annual returns under GST by two months to 30 August 2019 from the earlier June 30. The risk assessment plan has divided taxpayers into three categories based on the yearly turnover.

The audit list comprises of those taxpayers who are within Centre (CGST) administration and for FY 2017-18 have applied for more than three GSTR-3B returns. Furthermore, some audit commission rates and the categories have been twisted to safeguard adequate depiction of risky taxpayers in each category. It has also been proposed that 40% of existing manpower must be deployed on larger taxpayers. Although the list of taxpayers shared with each audit commission rate comprises of 80% of the aggregate taxpayers.  Others falling under the balance 20% might get selected up based on local. This was conducted to ensure that any kind of inconvenience is not caused to small taxpayers. Moreover, audit teams have been initiated to reduce litigation and move on to Desk-based Filing for Small Taxpayers in case of bonafide errors made by the taxpayers.


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