HSNS Rules · Rule 18
Rule 18 — Audit
Checked 27 Jul 2026Current rule package
Rule in 2 Minutes
Rule 18 implements the HSNS Cess Act within the 2026 machine/process-based levy framework.
Current official text / amendment package
18. Audit. - (1) The period of audit to be conducted under sub-section (1) of section 12 of the Act shall be a financial
year or part thereof or multiples thereof.
(2) Where it is decided to undertake the audit of a registered person, the proper officer shall inform such person by way
of a notice not less than fifteen days prior to the conduct of the audit.
(3) The proper officer authorised to conduct audit of the records specified under sub-rule (1) of rule 19 and the books
of account of the registered person shall, with the assistance of the team of officers and officials accompanying him,
verify the documents on the basis of which the books of account are maintained and the returns and declarations
furnished under the provisions of the Act and the rules made thereunder, and other relevant issues and record the
observations in his audit notes.
(4) The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and
such person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of
the reply filed.
CHAPTER VII
ACCOUNTS AND RECORDS
Practical implementation
- Identify the enabling HSNS Act section and factual trigger.
- Use the prescribed HSNS form/portal workflow where the Rule requires it.
- Retain machine/process, declaration, payment, return or officer evidence relevant to the Rule.
- Check First/Second Amendment Rules for the current wording before using a principal-rule copy.
Practical Q&A
Can Rule 18 be applied without the Act?
No. The Rule operates under section 35 and the relevant enabling provisions of the HSNS Act; the Act controls if there is any inconsistency.