Steps to Handle the GST Audit: 1. Notice for Audit: You will receive the notice for audit in Form GST ADT-01 as per Rule 101(2) of the CGST Rules, 2017. This notice specifies the period of audit and the venue (your premises or the tax officer's office). 2. Preparation of Records: Ensure that all your books of accounts, records, and other documents (e.g., inward supply details, bank statements, invoices, etc.) are properly maintained and readily available for verification. You are required to provide these as requested by the authorized officer. 3. Facilitation of Audit: As per the notice, you must afford the necessary facilities to the audit team for verification of the records, turnover declared, taxes paid, refunds claimed, and input tax credit availed. 4. Respond to Discrepancies: If discrepancies are noticed during the audit, the proper officer will inform you as per Sub-Rule (4) of Rule 101. You must provide a reply to address the discrepancies. 5. Concluding the Audit: After considering your response, the findings will be finalized. The proper officer will intimate the findings in Form GST ADT-02 within 30 days of concluding the audit. 6. Action for Tax Avoidance or Wrong ITC: If tax liability or wrong ITC is detected during the audit, action under Section 73 or Section 74 of the CGST Act, 2017 will be initiated for determination and recovery of the tax. 7. Litigation or Compliance: If you disagree with the audit findings, you can choose to litigate or comply with the demands raised based on the audit observations. Ensure all communications are handled timely and accurately to avoid penalties or further scrutiny.