Government of India
Ministry of Corporate Affairs


Dated: 6th August, 2018

Pursuant to introduction of GST, the Companies (Cost Records and Audit) Rules, 2014 are to be amended to incorporate resultant changes. Accordingly, the Draft Companies (Cost Records and Audit) Amendment Rules, 2018 have been placed on the Ministry’s website for suggestions/ comments.

Suggestions/ comments on the draft rules along with justifications in brief may be sent latest by 13/08/2017 through email at [email protected]

It is requested that the name, contact number, email address and postal address of the sender be indicated clearly at the time of sending suggestions/comments in the following format:-

Format for sending suggestions/comments

1. Name, contact number, email address and postal address of stakeholder

2. Suggestions/comments as under

 Serial Number Rule/ para/ clause/ sub clause Suggestion/



[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)1




New Delhi, the               July, 2018

G.S.R……………………… (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 469 and section 148 of the Companies Act, 2013 (18 of 2013) (hereinafter referred as the Act), the Central Government hereby makes the following rules further to amend the Companies (Cost Records and Audit) Rules, 2014, namely:-

1. These rules may be called the Companies (cost records and audit) Amendment Rules, 2018. Save as otherwise provided in these rules, in respect of those companies who have already filed their Cost Audit Report in form CRA-4 for the financial year 2017-2018 with the Central Government prior to issue of this notification, such companies are not required to file their Cost Audit Report for the said financial year once again.

2. In the Companies (cost records and audit) Rules, 2014 (hereinafter referred to as the principal rules), in Annexure, in Form CRA -1, the following amendments shall be deemed to have been substituted with effect from the 1st day of April, 2017, namely:-

(i) for sub-paragraph numbers (m), (q), (r), (s) of paragraph number 7 on ‘Overheads’, the following paragraph numbers shall be substituted, namely:-

” (m) Overheads shall be classified according to functions, viz., works, administration, selling and distribution, head office, corporate etc. Works overheads, also known as Production Overheads, Operation Overheads, Factory Overheads or Manufacturing Overheads, shall be the indirect costs involved in the production of a product or in providing service. Administrative overheads shall be the aggregate of cost of resources consumed in activities relating to general management and administration of an organisation. Selling and Distribution overheads shall be the aggregate of cost of resources consumed in the selling and distribution activities of the organization.

(q) In case of leased assets, if the lease is an operating lease, the entire rentals shall be included in the administrative overheads. If the lease is a financial lease, the finance cost portion shall be segregated and treated as part of finance costs

(r) Selling and Distribution Overheads, the benefits of which are expected to be derived
over a long period, shall be amortized on a rational basis

(s) Any demurrage or detention charges or penalty levied by the transportation or other authorities in respect of distribution activity shall not form part of Selling and Distribution Overheads.”;

(ii) paragraph number 8 on ‘Administrative Overheads’ shall stand deleted;

(iii) for sub-paragraph numbers (a) and (c) of paragraph number 28 on ‘Cost Statements’, the following paragraph numbers shall be substituted, namely:-

“(a) Cost statements (monthly, quarterly and annually) showing quantitative information in respect of each goods or service under reference shal I be prepared showing detai Is of avai !able capacity, actual production, production as per excise records, production as per GST records, capacity utilisation (in-house), stock purchased for trading, stock and other adjustments, quantity available for sale, wastage and actual sale, total quantity of outward supplies as per cost records and total outward supplies as per GST records during current financial year and previous year.

(c) Cost statements (monthly, quarterly and annually) in respect of reconciliation of indirect taxes showi ng detai Is of total clearances of goods or services, assessable value, duties or taxes paid, CENVAT or VAT or Service Tax or GST, Credit utilised, duties or taxes recovered and interest or penalty paid.”;

3. In the principal rules, in Annexure, in Form CRA-3, the following shall be substituted,

(i) in point 12 of table 2 of Part A, the following shall be substituted, namely:-

“12(a) Number of audit committee meeting (s) during the year for which Cost Auditor was invited.

12(b) Number of audit committee meeting(s) attended by cost auditor during year.”:

(ii) in table 4 of Part A, the words “Exceptional, Extra Ordinary and Other Comprehensive Income, if any” shall be substituted as:-

“(i) Exceptional and Extra Ordinary income

(ii) Other Comprehensive Income, if any”;

(iii) in table 4 of Part A, the words “Turnover as per Excise records” shall be substituted as “Turnover as per Excise / GST records”;

(iv) in point 3 of table 1 of Part B, the words “Production as per Excise records” shall be substituted as “Production as per Excise/ GST records”;

(v) table 3 of Part D, for sl. nos. 1, 2, 3 and 9, the following shall respectively be substituted, namely:-

“1 Revenue from Operations;

2 Less: Taxes and other duties;

3 Net Revenue from Operations;

9 Add: (i) Exceptional and Extra Ordinary income

(ii) Other Comprehensive Income, if any”;

(vi) table 6 of Part D, shall be re-numbered as table 6(A) of Part-D and shall be applicable till 30.06.2017 and a new table namely 6(B) shall be inserted as follows:-

“6(B) Reconciliation of GST (for the company as a whole) (applicable w.e.f. 01.07.2017)

Particulars Taxable Value/ Assessable Value Excise Duty Goods & Services Tax
Rs. Rs. Rs. Rs. Rs. Rs.
SL No. Duties/ Taxes Payable
Excise Duty
1 Domestic
2 Export
3 Stock Transfers
4 Others, if any
5 Total (1 to 4)
Goods & Services Tax
6 Outward Taxable Supplies (other than zero rated, Nil Rated and Exempted)
7 Outward Taxable Supplies (zero rated)
8 Inward Supplies (liable to Reverse Charge)
9 Other Outward Supplies (Ni I Rated, Exempted)
10 Non-GST Outward Supplies
11 Total (6 to 10)
12 Total Duties / Taxes Payable (5 + 11)
Duties/ Taxes paid [by Utilisation of Input Tax Credit and Payment through Cash Ledger, as the case may be]
GST – Input Tax Credit Utilised
15 I GST
16 Cess
17 Transitional Credit
18 Total Input Tax Credit Utilised (13 to 17)
19 Payment through Cash Ledger
20 Total Duties/Taxes Paid (18 + 19)
Difference between Taxes Paid and Payable (12 – 20)
21 Interest/Penalty/Fines Paid

 [F.No. 1/40/2013-CL-V Part 1]

K.V.R. MURTY, Jt. Secy., Government of India

Explanatory Memorandum: It is certified that no person is being adversely affected by giving retrospective effect to this notification. The proposed amendments have been made on account of introduction of Goods and Services Tax.

Note.- The principal rules were publ i shed i n the Gazette of India, Extraordinary, Part I I, Section 3, Sub-section (i), vide number G.S.R. 425 (E), dated the 30th June, 2014 and amended vide number G.S.R. 01(E), dated the 31st 2014 and vide number G.S.R. 486 (E), Dated the 12th June, 2015 and vide number G.S.R. 695 (E), dated the 14th July, 2016 and vide number G.S.R. 1498 (E), dated the 7th December, 2017 and vide number G.S.R. 1526 (E), dated the 20th December, 2017.

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