View All Highlights of union Budget 2026-27 || Due Date - IT || Advisory on Interest Collection and Related Enhancements in GSTR-3B || Due Date - IT || Due Date - GST || Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST || Due Date - GST || Due Date - GST || Due Date - GST || Due Date - IT || Due Date - IT || Due Date - GST || Due Date - GST || Due Date - GST || Due Date - IT || Advisory on Filing Opt-In Declaration for Specified Premises, 2025 || Due Date - IT || Due Date - IT || Advisory & FAQ on Electronic Credit Reversal and Re-claimed Statement & RCM Liability/ITC Statement || Due Date - GST || Due Date - GST || Consolidated FAQs on GSTR -9/9C for FY 2024-25 || Due Date - IT || Due Date - GST || Due Date - GST ||

GST

Internal Auditor can’t undertake Goods and Service Tax (GST) Audit of same Entity due to Role Conflict: ICAI

September 29, 2018

ICAI has clarified that ‘internal auditor’ of an entity can’t undertake ‘GST Audit’ of the same entity due to role conflict of Internal Auditor and Statutory Auditor. Besides, bar on ‘internal auditor’ to accept ‘tax audit’ (under Income Tax) will also be applicable to ‘GST Audit’ (under CGST Act 2017).

We have received enquiries from the members at large and other stakeholders as to whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017.

The Council of the Institute, while considering the issue at its 378th Meeting held on 26th and 27th September, 2018, noted its earlier decision taken at its 281st Meeting held from 3rd to 5th October, 2008, that internal auditor of an assessee, whether working with the organization or independently practising Chartered Accountant being an individual chartered accountant or a firm of chartered accountants, cannot be appointed as his Tax auditor (under the Income Tax Act, 1961).

Upon consideration, the Council has decided that based on the conflict in roles as statutory and internal auditor simultaneously, the bar on internal auditor of an entity to accept tax audit (under Income Tax Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017).Accordingly, it is clarified that an Internal Auditor of an entity cannot undertake GST Audit of the same entity.