Section 65 of the CGST Act, 2017 – Audit Report —- The Petitioner executed certain works contract, for which it has received consideration. The petitioner submitted that the receiver of service is a Government concern and hence petitioner is liable to pay GST at the rate of 12%. However, the respondent authority has audited the petitioner and is demanding 18%. The respondent counsel submitted that the audit report is only a report under Section 65 (6) of the CGST Act and no recovery proceedings are initiated. The court observed that only audit report is issued and no recovery is contemplated by the authorities. Upon issuance of an audit report under Section 65 (6) of the CGST Act, it requires further adjudication before holding the petitioner liable for the same, which will be done only after hearing the petitioner. Hence, the writ petition filed by the petitioner has to be considered premature.

Held that:- The Hon’ble High Court dismissed the writ petition.