DIRECTORATE GENERAL OF AUDIT, INDIRECT TAXES & CUSTOMS

C.R. Building, I.P Estate,

New Delhi – 110109.

The Directorate General of Audit, an organization under Ministry of Finance, Department of Revenue was created by the Central Board of Excise and Customs (renamed as Central Board of Indirect Taxes and Customs) in July 2000 with headquarters at New Delhi. At present Sh. Suakzathang Nunthuk, Director General is the head of the Directorate General of Audit. The organisation was expanded in November 2002. Presently, this Directorate General has 7 Zonal Units at Delhi, Ahmedabad, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata each headed by a Principal/Addl. Director General. One Additional Director General is also posted at the Headquarters along with 1 Additional Director and 2 Assistant Directors, 4 Additional Assistant Directors and 5 Inspectors. There is one D.D.O. who is assisted by Senior Tax Assistant/ Tax Assistants. Office hours of the Directorate General and all its zonal units are 0930hrs. to 1800 hrs. on all working days (Monday to Friday).

(i) Particulars of its organization, functions and duties:

Directorate General of Audit has its Headquarter located in Delhi with 7 Zonal Units headed by Principal / Addl. Director Generals. The functional responsibilities of this Directorate General have been delineated in the Charter of Functions. The uniqueness of the Charter is that it does not envisage the Directorate General should conduct primary audits in erstwhile Central Excise, Service Tax or GST etc. on its own. Instead, it is meant to oversee the creation and institutionalization of a credible audit system.

List of Head of Department/ Head of office since inception

Some of the important responsibilities mentioned in the Charter of functions are:

• (a) To develop and provide policy direction and programme leadership to the internal audit of taxpayers of Goods & Service Tax as well as assessees of present and erstwhile Central Excise and Service Tax. To ensure its effective and efficient implementation, including periodic review, preparation and updating of the Audit Manual and GST Audit Programme.

• (b)  Further to develop, enhance and monitor implementation of ‘Risk Assessment’ Module with information technology solution with the help of the Directorate of Analytics and Risk Management.

• (c) To plan, co-ordinate, supervise and provide functional direction to CGST Audit Commissionerate in effective conduct of audit on selection basis, in case of Multi-Locational suppliers as and when approved by the Board.

• (d) To closely associate with the Directorate General of Systems and Data Management to develop an efficient Audit Module in CBIC – GST Systems, which will aid the field formations in conducting meaningful and focused audit and reduce the interaction with taxpayers to a large extent. Also to associate with the Directorate of Data Management in the Audit Utility Module. Further to interact with the Directorate General of Systems in the ADVAIT Project in audit related matters/reports/information.

• (e)   To interact with National Academy of Customs, Indirect Taxes and Narcotics to develop strategies for timely training of auditors including refresher courses for them.

• (f)  To evolve a mechanism for assessing and ensuring audit quality assurance by sample review of major audit reports, setting up standards and norms for evaluating the quality of audit and to bring about uniformity in the audit system across the country. For this purpose monitor the performance and pendency related to audit in the Audit Commissionerate.

• (g) To study the levels of compliance including recoveries of dues relating to important audit objections/ points at all India, Zonal and Commissionerate levels. To collect and disseminate information having a bearing on tax evasion / avoidance / compliance and having revenue ramification, which are noticed during conduct of audit. For this purpose, circulate Monthly Audit Bulletins and important audit objections.

• (h)To conduct analysis and experimental studies in order to develop strategy for self-compliance by assessees including identification of the areas of and reasons for persistent non-compliance and to suggest remedial measures, by studying the audit reports.

• (i) To enhance tax compliance by assessees through a planned programme of interface with Trade Associations and Chambers of Commerce and Industries with a view to propagate self compliance by developing an understanding and faith in the merits of such compliance.

• (j) To gauge the level of assessee satisfaction in GST Audit by adopting scientific methods/tools of surveys.

• (k) To conduct regular studies, based on audit experiences and reports of the existing laws, rules , procedures, instructions relating to GST and to make recommendations to the Board for removal of procedural/ legal impediments / areas of revenue leakage that discourage quick compliance or to re-engineer the process to improve the tax system.

• (l) To co-ordinate with CGST formations/Directorates and other agencies for exchange of information on new methods to ensure tax compliance.

• (m) The Budgetary Support Scheme, which has been in force since 01.07.2017, was launched as a measure of goodwill to provide the Budgetary Support to the units located in the States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim. Directorate General of Audit is the nodal agency of the scheme, with its Additional Director General as nodal officer. Directorate General of Audit in collaboration with Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce & Industry has been entrusted with the responsibility of smooth implementation and monitoring of scheme.

• (n) To act as a Nodal Directorate for Customs Post Clearance Audit as per CBIC Instruction No. 18/2020-Customs dated 06.10.2020 vide F.No. 715/03/2020-Cus(AS).

• (o) To carry out any other task assigned by the CBIC.

(ii)Powers & duties of the officers and employees:

For financial matters the Principal Director General/ Director General is the Head of Department (HoD) for the headquarters and the Principal /Additional Director Generals of the zonal units are the HoD for their respect office. Financial power under Schedule V and VI under the Delegation of Financial Rules, 1978 (DFPR) of Principal Director General has been delegated to the ADG(Hqrs) under sub-rule (3) of rule 13 of the said Rules. The officers of the Directorate General do not conduct primary audit of the tax payers. They provide policy support to guide the officers of field formations. The provisions of Section 3, 4, and 5 of the CGST Act, 2017 delineates powers of Central Tax officers. In this regard, the Government has issued notification no. 2/2017- Central Tax dated 19.06.2017.

(iii)The procedure followed in the decision making process, including channels of supervision and accountability

The work done by the Directorate General is more of a team work due to spartan staff being posted in the Headquarter and the Zones. Because of the flat organizational structure, there is full supervision and control over the work being done. The work related to Accounts section is done by accounts section staff under the supervision of the Chief Accounts Officer/ Administrative officer and the technical works is done by executive staff of the Directorate General under the supervision of the Asstt. Directors. The Director General is the final decision making authority in the Directorate General of Audit. There is no specific time-line for taking decision on various issues. Channel of grievance mechanism is – Additional Director/Joint Director- Principal Additional Director General/Additional Director General- Principal Director General/Director General.

(iv)The norms set by it for the discharge of its functions:

In general, the norms under which the Department functions are specified in the Citizens Charter and Missions Statement available in the public domain. There are no separate norms set for the discharge of functions of the Directorate General.

(v) Rules, regulations, instructions, manuals & records held by it or under its control for being used by the employees for discharging its functions:

The Directorate General had been preparing and making available to the field formations the Central Excise Audit Manual and Service Tax Audit Manual to guide the officers in field formations in conducting audit of erstwhile Central Excise and Service Tax assessees. After implementation of GST, the Directorate General has obtained approval of the Board and circulated the GST Audit Manual, 2019 to provide policy support in conduct of GST audits.

(vi) A statement of the categories of documents that are held by it or under its control.

The work of this Directorate involves monitoring and co-ordination on the basis of audit reports sent by Goods and Services Tax Commissionerates from all over India taking into accounts various guide lines mentioned in the Audit Manuals and Quality Performance Review. Their Audit performances are monitored on the basis of these reports. No original records or documents are scrutinized or generated by this Directorate General.

(vii) The particulars of any arrangement that exists for consultation with, or representation by the members of the public in relation to the formulation of its policy or implementation thereof

The functioning of this Directorate does not involve any Public Dealing. Co-ordination and Monitoring is being carried out with Central Goods & Services Tax Commissionerates directly.

(viii) A statement of the Boards, Councils, Committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advise, and as to whether meetings of those Boards, Councils, Committees and other bodies are open to the public, or the Minutes of such meetings are accessible for public

No statutory Board or Committee has been constituted as the same is not necessary.

(ix) Directory of its offices and employees

This information has been notified by the Directorate separately under https://www.cbic.gov.in/htdocs-cbec/home_links/sampark-2020

(x) Monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations

Other allowances as admissible from time to time for Central Government Employees, e.g HRA 24% on Basic.

(xi) Budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made

This information is attached herewith as Annexure ‘A’. Annexure A

(xii) Manner of execution of subsidy programmers, including the amounts allocated and the details of beneficiaries of such programmes :

Not applicable

(xiii) Particulars of recipients of concessions, permits or authorizations granted by it:

Not applicable

(xiv) Details in respect of the information, available to or held by it, reduced in an electronic form:

The Primary function of the Directorate General is to provide policy support to the working of Audits in field formations. As such, no information is available in electronic form apart from the Audit Manuals prepared and circulated internally by the Directorate General.

(xv)The particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintained for public use.

This Directorate occupies the rooms allotted by Delhi GST Zone and does not have separate library or reading room. Moreover, the Directorate General does not have any public dealing. General Public can visit the office during working days and obtain related information.

(xvi) Names, designations and other particulars of the Public Information Officers :

Please see the list of CPIOs provided separately at http://www.cbic.gov.in/htdocs-cbec/info-act/aa-cpio/aa-cpio-idx

(xvii)Such other information as may be prescribed - NIL.

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