30, October 2026

A STUDY ON THE ROLE OF TAX AUDIT IN ENSURING GST AND INCOME TAX COMPLIANCE

VOLUME-12; ISSUE-10; OCT-2026

Author(s): PRACHI RIPAHI , Dr. SNEHA SINGH

Authors Affiliations:

  1. Student, Department of Business Administration, Vindhya Institute of Technolog and Science
  2. Associate Professor, Department of Business Adminisraion , Vindhya Institute of Management and Science , Satna ,MP

DOIs:10.2015/IJIRMF/202610017     |     Paper ID: IJIRMF202610017


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Tax audit serves as a critical regulatory mechanism within financial and legal frameworks to foster transparency, mitigate tax evasion, and promote voluntary tax compliance. In India’s dual tax system—comprising direct taxes governed by the Income Tax Act, 1961 , and indirect taxes governed by the Goods and Services Tax (GST) Act, 2017—tax audits play an indispensable role in maintaining market integrity and statutory adherence. This paper examines the systemic role, legal provisions, methodologies, and overall impact of tax audits in ensuring compliance under both Income Tax and GST regimes. Through a detailed multi-layered analysis, this research investigates how Section 44AB of the Income Tax Act and statutory GST audit frameworks (including departmental audits under Section 65) interact to curb revenue leakages, rectify reporting errors, and promote systematic record-keeping among taxpayers. The study evaluates empirical literature, regulatory frameworks, operational challenges, and technological integration, offering policy recommendations for streamlined tax administration.

TAX AUDIT, INCOME TAX COMPLIANCE, GST , RISK BASED AUDIT,INPUT TAX CREDIT

PRACHI RIPAHI , Dr. SNEHA SINGH (2026); A Study on the Role of Tax Audit in Ensuring GST and Income Tax Compliance, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-12, Issue-10, Available on –   https://www.ijirmf.com/

  1. Central Board of Direct Taxes (CBDT). Guidance Note on Tax Audit under Section 44AB ofthe Income Tax Act, 1961. Ministry of Finance, Government of
  2. Central Board of Indirect Taxes and Customs (CBIC). GSTAudit Manual and Statutory Guidelines. Department of Revenue, Ministry of Finance, Government of
  3. Institute of Chartered Accountants of India (ICAI). Technical Guide on Income Tax Audit and GSTCompliance Reconciliation.

New Delhi: ICAI Publications.

  1. Allingham, G., & Sandmo, A. (1 972). Income Tax Evasion: A Theoretical Analysis. Journal of Public Economics, 1 (3-4), 323-338.
  2. Statutory Enactments: Income Tax Act, 1 961 (Sec 44AB, 40A, 43B) and Central Goods and Services Tax Act, 201 7 (Sec 65, 66).
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