The Central Board of Indirect Taxes and Customs (CBIC) has introduced common norms for central and state level Goods and Services Tax (GST) officials to audit banks, as announced by CBIC chairperson Sanjay Kumar Agarwal. This move aims to provide more clarity to banks about audit procedures, as officials will have a common audit plan to follow. The common minimum audit plan for banks, issued in April, provides guidelines to assist audit officers from both the Centre and the states in functioning in an efficient, focused, transparent, and coordinated manner, according to a communication posted on the CBIC website. Agarwal emphasized that the common audit plan is a stellar example of the synergy between the Centre and the states in implementing indirect tax. GST audits involve examining tax returns and other business records to verify the accuracy of declared sales, taxes paid, refunds claimed, and input tax credit availed. Any discrepancies can raise red flags. The common minimum audit plan is designed to assist officials in conducting audits of the banking sector in a comprehensive manner, given its complexity and organization. Additionally, Agarwal informed field officers about a new agreement between India and Australia that enhances trust-based facilitation for businesses. Customs authorities in both countries have agreed to recognize each other’s authorized economic operator (AEO) programs, which offer certain privileges to trustworthy traders. AEO programs promote ease of doing business, and agreements with other countries expand the scope of benefits to merchants and brokers involved in international trade. These privileges include faster shipment clearance at ports, reduced inspection charges, quicker tax refunds, deferred duty payment facilities, and acceptance of self-declared origin of goods. Mutual recognition agreements enable merchants from India to access these benefits in countries that have signed such agreements with India.
CBIC Unifies Audit Norms for Banks Across Central and State GST Authorities
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