OFFICE OT THE DEPUTY COMMISSIONER OF CDNTRAL TA)(

AUDI? CIRCLE-V:: LAXMI NMS, H.NO.6-2-129, KANTESWARA MARG,

SUBASH NAGAR, NIZAMABAD.SOSOO2.
C.No.V/G/Ai \i 132 l2O2O-2 i i cs'i/'Cr-V/Gr-S1 Date:08.O4.202 1

3rfr-fr tgl Ytsil Rsrlt i.Finat

udit Report No.66O /2020-21
Sub:- GST Audit conducted of M/s. Chanakya Spinning MiUs pvt Ltd,
7-2-27, Near Geetha Plyrvood, N.H. No.7, Adilabad, Telangana-
504001 the period July,20t7 to March,2019 - Issuance oI
Fina-l Audit Report-Reg.
Part -I
6'{EIiIT 6I ilIET A CAI M/s. Chanakya Spinning Mi11s Pvt Ltd,
7-2-27 . Near Geetha Plwvood. N.I-l . No 7
Name & Address of the Taxpayer Adrlabad. Telan gana' 50400 1
a"cq ffiq-t"rq, el+qlqir{Tl. 6rqtfr-q
2 ilft - do-
Head Office, Regional/ Branch
Offic ES CtC

3
s-{ 4mr fi F"ft i

Small Tax payer

Status of the tax er
3TE-6.Raf*rrg+ara-+ / fi'€i{/ ts' Medchal Commissionerate
4 Jurisdictional Commissionerate/ Nizamabad Division
Division/ Range Adilabad Range
Goods & Service Tax Registration
I J 36AAECCSBO3E2ZZ
No.
ffid-A"d r.rrrEt *r fr-slur
6 ' Description of goods Cotton Seed, Cotton Bales
manufactured / Service rendered
7 HSN Code 5201 1207
F*-qr'4q't at r€-Sr
3lJr{ Ei. mr ilaT
qe ]rBq-dr € 3lk qs{rfi Ff* dzrT
5S?F'I FI{
8 OI l2017 - Cenrral Tax(Rate)
Exemption Notification No. and its
effective date aiong with gist of
I
exemption notification in case
exem tion is claimed

I 3ift4.d-qr cfian fr ftfu First audit in GST era

Date of last audit
Ercfu ffi Rs rd-fia ter citeTr 6r
10. ,€ July 2017 to March, 2019
Period for which current Audit
undertaken
11
der.rtrffi frarfrt 08.o2.2021
Dares on which audit undertaken

2
*gr qfrqrst h drq 1 Shri N.Pushparaj, Supdt
,

Names ol the Auditors 2. Shn Ramanand Kumar, Inspr

 13
llE-Fd q-{T3{t 6r Ti. 1
No. of Revenue Paras
14.
QrsTfr's" Nil
No. of procedural Paras
cftqa'tllBit fr enfta*"ara-r'd'
d.eT J Revenue para : GST ol Rs. 14,400/-
1 5 Total Revenue involved in audit along with interest and penaltY.
paras

PART - II
fsrqfiaTTt 6T sr{ltr SUMMARY OF AUDIT RBSULT S

ttr€t .rfiffiI + Ekr;r EBd {6r-{Tt E EtT z}T $1clffiT qra"'i f,r r^ctsr sera's't]
IPROVIDE AN OUTLINE OF IMPORTANT AND MATERIAL NON COMPLIANCE
ISSUES IDENTIFIED DURING THE AUDIT]
ef.aWi E ats dr-rra.n;rfiI *'RRa fr'('?ir erat 3fl-r sirrr +-roat fi sfrG;rn fr'E
snvft#ftrr$t r

The important and material non-compliance issues identified and reaction ol

the tax payer is indicated in the table given below:-

rfifda silqfui6-rsrt rrqss:dfrcirar, qft fi,rs oTErmtrr ifrenzrq,rFrq,{

+{T d'. Gist of obj ectrons (+'. fr ) Revenue €-6nfr 6i/afr, errtur gftra
Attested write- up / workings qfra'fi', DepaJtment's
Audit lmplications,
may be enclosed if lf any {in Rs.) conclusion
Para
No.
warranted rs-fqfr6Tqir$ u,ith reason s:
+nq rt at \1MC <lir t t' &
Tax payer's de'r:rsrorr
,:\greement
I
Yes/ No,
If no, reasons
for
1s-agr eement
Dscussed in the
Non- payment of GST MMCM held on
9 .3.2021
under Reverse Charge
Para has bee n
.

Mechanism under CGST: Rs,7,200/- ad mitted and

Section 9(3) of CGST Act, SGST: RS.7,200/- Agreed and SAG is d irected
1
2017 during the audit Interest: as applicable ready to pay to recove r Tax
Penalty: as applicabie alonq wrth
period: Amount involved applicable
Rs.14,400/- interest and
penalty or issu e
CN.

Details of Audit Obiectionsl

PARA- 1: Non- payment of GST under Reverse Charge Mechanism under
Section 9(3) of CGST Act, 2O1.7 during the audit period: Amount involved
Rs.14,4OOl -

During the course of audit, on verification of records, rt rs observed thaL

the taxpayer has paid amount to Govt. for filing of ROC during the audit
period. The details are as follows.

RcM e(3) Value cGsT @ 9%

-Ti"t.rcii
l
l9-sr-@lZr , -1.. -. .. -
I
I

ROC Filin gF 80000 7290 i

7200 14400
The total GST works out ro CGST of Rs .7 ,2OO l- an d SGST of Rs.7,2007 -
The taxpayer has not paid the same.
 Therefore, the taxpayer is required to pay CGST of Rs.7,200/- and
SGST of Rs.7,2O0l- under section 9(3) of CGST Act, 2017 along with interest
under section 50(1) oi CCST Act 2017. Further during the audit on verification
of records, it is noticed that the taxpayer has not disclosed the ta-\ Iiabiliiy as
discussed above wilh intention to evade payment of tax. Hence, penalty under
Section 7a(5) of CGST Act, 2017 is proposed,

On being pointed out, the taxpayer have accepted the audit objection and
ready to pay.

Departmental Conclusion: The para has been admitted and SAG is drrected
to recover tax aiong with applicable interest and penalty or issue SCN, as
communicated vide Minutes ol the MMCM held on 09.03.2a21, circulated vidc
letter C.No. GADT/PndC/MCMl62l2020-P&C/O/o COMMR-CGST-ADT l1-
HYD/Feb 202 1 dated 12.03.2021.

t1
(SATIS c BHAWARE)
Deputy Commissio r, Circle-V
q\
To
M/s. Chanakya Spinning Mills Pvt Ltd,
7 -2-27 ;Near Geetha Plywood,
N.H. No.7, Adilabad, Telangana- 5O4OO1.

Copy submitted to:

1)The Additional Director General (Audit), Centrai Tax, Nampally, Hyderabad

Z) ffre Assistant Commissioner of Central Tax, (MIS-lI), Audit-li
\. Cgmmissionerate.
\aifi.,. Assistant Commissioner of Centrai . Ta-':, Nizamabad Division, for
information.
\+ff --n e Superintendent of Central Tax, Adilabad Range, for information.