GST ADT-01 explained: notice for audit by the tax department

What a Section 65 audit is

This is an audit by departmental officers, authorised by the Commissioner, of your books, returns and compliance for one or more financial years. It is different from the self-certified reconciliation that businesses once filed. It can be conducted at your premises or at the tax office.

Timeline

Rule 101 requires at least 15 working days' notice. Section 65 requires the audit to be completed within three months from the date of commencement, extendable by the Commissioner by up to six more months for reasons recorded in writing. Within 30 days of conclusion, the findings are communicated in ADT-02.

The audit period can be one or more financial years, or part of a year, as stated in the notice. Check the periods carefully, because older years may need records from archives or from a previous accountant, and collecting them takes time.

Records usually called for

• Financial statements, ledgers and stock records
• Sales and purchase registers with invoices
• Returns: GSTR-1, GSTR-3B, GSTR-9 and 9C where filed
• ITC reconciliation with GSTR-2B and reversals
• E-way bills, contracts, job work and branch transfer records
• Reverse charge and export documents

How to prepare

Acknowledge the notice and confirm the date and venue. Do your own reconciliation first: turnover in books versus returns, ITC in books versus GSTR-2B, and reverse charge. Where you find a shortfall, you can pay through DRC-03 with interest before or during the audit, which limits interest and helps the penalty position. Nominate one person to give documents and keep a log of what was handed over. During the audit, auditors may share observations in writing; reply to each with documents before findings are finalised.

Get it handled for you

Received a notice like this? Our chartered accountants draft the reply from your records and an authorised representative follows up with the officer, so you do not have to visit the department. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.