GST · Information
ADT-02: Audit report — findings of departmental audit
The findings of a departmental audit. What to do: read each observation against the audit papers, then pay accepted observations through DRC-03. The notice states the date — read it from the document.
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Key facts
The findings of a departmental audit. It is not itself a demand, but any tax found short can be demanded through a show cause notice under Section 73 / 74 / 74A (Section 65(7)).
| Form | ADT-02 (Audit report — findings of departmental audit) |
|---|---|
| Issued by | The GST officer named on the document |
| Issued under | Section 65(6) r/w Rule 101(5), CGST Act & Rules 2017 |
| What it asks of you | Read each observation against the audit papers |
| Your time to act | The notice states the date — read it from the document. |
| If it is ignored | Disputed or unpaid findings lead to a show cause notice under Section 73 / 74 / 74A. |
Time allowed
The notice states the date — read it from the document.
The date stated on your notice always wins.
What to do now
Read each observation against the audit papers
Separate observations you accept from those you dispute, with the reasoning and evidence for each.
Pay accepted observations through DRC-03
Paying tax and interest on accepted points before a show cause notice keeps the penalty to the minimum (nil in non-fraud cases).
Put the disputed points in writing
Write to the audit officer with the reasons before a show cause notice is issued. Diarise the follow-up.
What a written response contains
A written response usually covers the points below. This is an outline, not a draft: our expert team writes it on your own records.
- Reference: the ADT-02 document's reference number and date, your GSTIN and the period it covers.
- An answer to each point the document raises, in the same order, saying what you accept and what you dispute.
- Evidence for each point: the returns, books and documents each answer relies on.
- Where it is filed: as stated on the document.
If it is ignored
- Disputed or unpaid findings lead to a show cause notice under Section 73 / 74 / 74A.
Official sources
Sources checked on 24 October 2026.
- CGST Act 2017, section 65 (audit by tax authorities) · read 24 October 2026
- CGST Rules 2017, rule 101 (audit) · read 24 October 2026
Any provision named on this page but not listed here is to be confirmed by our expert team.
Frequently asked questions
What is a GST ADT-02 audit report?
The findings of a departmental audit. It is not itself a demand, but any tax found short can be demanded through a show cause notice under Section 73 / 74 / 74A (Section 65(7)).
How much time do I have to act on a GST ADT-02 audit report?
The notice states the date — read it from the document. The date stated on your notice always wins.
What happens if I ignore a GST ADT-02 audit report?
Disputed or unpaid findings lead to a show cause notice under Section 73 / 74 / 74A.
Related guides
General information from the provisions this notice is issued under, not legal advice. The dates and periods stated on your notice always win. Our expert team can read the full notice with you.