Decided 23 October 2026. The Gujarat High Court has dismissed a challenge to a GST audit report on the ground of limitation. It held that, under the Explanation to section 65(4) of the CGST Act, an audit "commences" on the later of two dates: the date the records are made available, or the date the audit is actually instituted at the place of business. At the same time, the Court said the department must tell taxpayers which documents are still missing.
Case at a glance
| Case | Hubergroup India Pvt. Ltd. v. Union of India & Ors. |
| Forum | Gujarat High Court (Justice A.S. Supehia and Justice Vaibhavi D. Nanavati) |
| Case No. | R/Special Civil Application No. 14772 of 2024 |
| Date of judgment | 23 October 2026 |
| Periods | FY 2017-18 to 2019-20 (later extended to 2022-23) |
| Key provision | Section 65(4) CGST Act and its Explanation |
| Result | Writ petition dismissed; taxpayer left to reply to SCNs or appeal |
Facts of the case
The company, a manufacturer of pigments and printing ink, received an audit notice in Form ADT-01 on 27.06.2022 for FY 2017-18 to 2019-20 and submitted its financial statements, returns and other records. A second ADT-01 (a reminder for the same documents) followed in November 2022, and the documents were sent again in February 2023.
A third ADT-01 dated 09.02.2024 added FY 2021-22 and 2022-23. The audit was actually instituted at the company's premises on 19.06.2024 and the final audit report was issued on 02.08.2024, followed by eight show cause notices.
The company argued that the audit had commenced when it supplied the documents in 2022-23, so the report issued in August 2024 was far beyond the three-month limit.
Issue before the High Court
When does a GST audit "commence" for computing the three-month limit under section 65(4), and was the audit report time-barred?
What the High Court held
- The Explanation to section 65(4) gives two events and makes the later of them decisive: the date records are made available, or the date of actual institution of audit at the place of business.
- Since there was a factual dispute about whether all documents had been supplied, the date of actual audit at the premises (19.06.2024) could be taken as the commencement date. The report of 02.08.2024 was within three months.
- The Court observed that where a taxpayer furnishes documents but some remain outstanding, the authorities must inform it of the missing documents within a reasonable time so the audit is completed quickly. The department had failed to do so here.
- That lapse alone did not justify quashing the audit. The show cause notices were not interfered with on merits; the company can reply and, if needed, appeal under section 107.
Practical takeaways for taxpayers
- Keep a written record (with acknowledgement) of every document submitted in response to Form ADT-01.
- If the department keeps issuing reminders, ask it in writing to specify what is still pending. This ruling supports that request.
- A limitation challenge to an audit will be weak where the visit to the premises happened later and the department disputes that all records were given.
- Prepare the reply to the audit-based SCN on merits; writ relief is unlikely on this point alone.
Frequently asked questions
How long can a GST audit take?
Section 65(4) allows three months from commencement, extendable by the Commissioner by up to six more months for recorded reasons.
What is the date of commencement of a GST audit?
The later of the date the records are made available or the date the audit is actually instituted at the place of business.
Facing a similar GST dispute?
GST Folio prepares replies to show cause notices, appeals before the Appellate Authority and GSTAT, refund claims and ITC reconciliations for businesses across India. Call or WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.
This summary is based on the order of the Gujarat High Court in R/Special Civil Application No. 14772 of 2024. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.