Announcement

   Sub. : Internal Auditor not to undertake Goods and Service Tax
         (GST) Audit simultaneously

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 assesee, 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.

28.9.2018