# GST Departmental Audit (ADT-01) & Special Audit

> A GST departmental audit under Section 65 starts with a notice in Form ADT-01, given at least 15 working days in advance. The officers examine your books and returns, normally completing the audit within three months (extendable by six), and communicate findings in Form ADT-02. A special audit under Section 66 is conducted by a chartered or cost accountant nominated by the department in complex cases.

Practice: Tax Notices & Litigation — https://www.industax.com/services/tax-litigation/

Preparation decides most audits: reconciled returns, an ITC register matched with GSTR-2B, proper documentation for exempt and zero-rated supplies, and evidence for RCM payments.

During the audit we respond to observations in writing, reconcile disputed points and advise on paying accepted amounts through DRC-03 to limit interest and penalty. Disputed findings proceed to a show-cause notice, which we then contest.

## Key facts

| Item | Detail |
| --- | --- |
| Notice | ADT-01, at least 15 working days in advance |
| Duration | Normally 3 months, extendable by up to 6 months |
| Findings | ADT-02 |
| Special audit | Section 66, by a nominated CA or cost accountant |

## Who needs this

- Businesses selected for GST audit
- Businesses with large ITC, refunds or exempt supplies
- Exporters and refund claimants selected for audit

## What's included

- Pre-audit reconciliation
- Document file
- Responses to observations
- Strategy on paying vs contesting

## Documents

- ADT-01 notice
- GST returns and books for the audit period
- ITC and RCM workings
- Annual returns (GSTR-9/9C)

## Process

1. **Prepare** — Reconciliations and document file ready.
2. **Respond** — Observations answered in writing.
3. **Close** — ADT-02 findings reviewed; payment or contest.

## Also covers

- **GST special audit** — Section 66 audits by nominated professionals.

## FAQs

### How long does a GST audit take?

Three months from commencement, extendable by up to six months.

### What happens after ADT-02?

Accepted amounts are paid; disputed findings lead to a show-cause notice that can be contested.

### What documents does a GST audit team usually ask for?

Books of account, sales and purchase registers, GSTR-1/3B/9/9C, ITC working with GSTR-2B, RCM payments, export and exemption documents, and reconciliations between books and returns.

## Official sources

- GST portal — Services > User Services > View Notices: https://www.gst.gov.in/
- CBIC — GST law and circulars: https://cbic-gst.gov.in/

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Canonical page: https://www.industax.com/services/tax-litigation/gst-audit-notice
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.