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Rule 101 of the CGST Rules, 2017

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GST›CGST Rules, 2017›Chapter XI, Assessment and Audit

At a glance

Bars, duties and time limits

101(3)With the accompanying team’s assistance, the authorised officer verifies documents, turnover, exemptions, deductions, tax rates, input tax credit, refunds and other relevant issues, and makes audit notes.

Procedure, powers and definitions

101(1)–(2)Under section 65, an audit may cover a financial year, part of a year or multiples thereof. The proper officer gives notice in FORM GST ADT-01 in accordance with that section.
101(4)–(5)The officer may communicate discrepancies and the person may reply. Findings are finalised after due consideration of that reply and communicated in FORM GST ADT-02 on conclusion of the audit.

Rule 101 governs the procedure for an audit under section 65. The audit may cover a financial year, part of it or multiple years. The authorised officer verifies supporting documents, accounts, returns and relevant tax positions, and notes observations. If discrepancies are communicated and the registered person replies, the officer must consider that reply before finalising the audit findings.

Quick facts

Rule 101, CGST Rules, 2017

Audit

Provision
Act	Central Goods and Services Tax Rules, 2017
Chapter	XI, Assessment and Audit
Rule title	Audit
Amendments
Last amendment	31 December 2018: Inserted vide Notification No.74/2018-CT dated 31.12.2018.
Amendments	1 footnote in the CBIC text (table)
Related provisions
Sections	Section 65 of the CGST Act, 2017
Forms named	FORM GST ADT-01, FORM GST ADT-02
Structure 101(1)period of audit 101(2)notice of audit 101(3)audit verification and notes 101(4)discrepancy communication and reply 101(4)finalisation of audit findings 101(5)communication of audit findings
Source
Law text	CBIC tax information portal, served on 17 September 2026

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes. The Rules as published in the Gazette of India is the legal source.

Rule 101, verbatim (show)

Rule 101. Audit.-

(1) The period of audit to be conducted under sub-section (1) of section 65 shall be a financial year ¹[or part thereof] or multiples thereof.

(2) Where it is decided to undertake the audit of a registered person in accordance with the provisions of section 65, the proper officer shall issue a notice in FORM GST ADT-01 in accordance with the provisions of sub-section (3) of the said section.

(3) The proper officer authorised to conduct audit of the records and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are maintained and the returns and statements furnished under the provisions of the Act and the rules made thereunder, the correctness of the turnover, exemptions and deductions claimed, the rate of tax applied in respect of the supply of goods or services or both, the input tax credit availed and utilised ,refund claimed, and other relevant issues and record the observations in his audit notes.

(4) The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and the said person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply furnished.

(5) On conclusion of the audit, the proper officer shall inform the findings of audit to the registered person in accordance with the provisions of sub-section (6) of section 65 in FORM GST ADT-02.

1. Inserted vide Notification No.74/2018-CT dated 31.12.2018.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

period of audit 101(1)

Questions to answer on the file2 questions

Does the auditor identify this as an audit under section 65(1)?
Which statutory period unit does the audit cover: a financial year, part thereof or multiples thereof?

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notice of audit 101(2)

Questions to answer on the file3 questions

Was an audit of this registered person decided upon?
Did the proper officer issue FORM GST ADT-01?
Does the auditor confirm the notice complies with section 65(3)?

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audit verification and notes 101(3)

Questions to answer on the file14 questions

Was the proper officer authorised to conduct this audit?
Did accompanying officers and officials assist in the audit?
Were the source documents underlying the books verified?
Were the furnished returns verified?
Were the furnished statements verified?
Was correctness of turnover verified?
Were claimed exemptions verified?
Were claimed deductions verified?
Was the applied tax rate verified?
Was input tax credit availed verified?
Was input tax credit utilised verified?
Was the refund claimed verified?
Does the auditor confirm verification covered the other relevant issues?
Did the proper officer record observations in audit notes?

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discrepancy communication and reply 101(4)

Questions to answer on the file3 questions

Were discrepancies observed in this audit?
Did the proper officer inform the registered person of those discrepancies?
Did the registered person file a reply?

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finalisation of audit findings 101(4)

Questions to answer on the file3 questions

Was a reply furnished by the registered person?
Does the auditor establish due consideration was given to that reply?
Did the proper officer finalise the audit findings?

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communication of audit findings 101(5)

Questions to answer on the file4 questions

Has this audit concluded?
Were the audit findings communicated to the registered person?
Was that communication in FORM GST ADT-02?
Does the auditor confirm the communication complies with section 65(6)?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.

Amendments to Rule 101 as footnoted in the CBIC text
Note	Change
1	Inserted vide Notification No.74/2018-CT dated 31.12.2018.^[1]

Provisions connected to Rule 101
Provision	Connection	Words that tie them
Section 65 of the CGST Act, 2017	this provision requires Section 65 of the CGST Act, 2017	101(1) "under sub-section (1) of section 65"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (1)

Number	Date	Subject
Circular No. 3/03/2017-GST	5 July 2017	Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg.

Notifications (2)

Number	Date	Subject
Notification No. 74/2018-Central Tax	31 December 2018	Fourteenth amendment to the CGST Rules, 2017. amended by a later instrument
Notification No. 10/2017-Central Tax	28 June 2017	Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument

See also

Section 65 of the CGST Act, 2017: audit by tax authorities

References

Notification No. 74/2018-Central Tax, dated 31 December 2018: Fourteenth amendment to the CGST Rules, 2017. Cited in CBIC footnote 1.

External links

None.