How to handle GST Return Scrutiny Notice-ASMT-10?

[Sandeep Saini]

As a registered person under GST, you are required to file GST returns in accordance with the rules and regulations of GST law. However, there may be instances when you may receive a GST return scrutiny notice in ASMT-10. The given notice is issued by the department to verify the accuracy and completeness of your GST returns. Here are points which would be helpful in handling GST return scrutiny notices in ASMT-10:

1. Read and understand the discrepancies highlighted in the notice carefully and accordingly prepare the reply. Generally, the discrepancies are given para-wise, therefore para-wise reply is preferable.
2. The discrepancies which are generally highlighted in the notice pertains to reconciliation issue or any information not provided or wrongly provided in the returns filed on GST portal.
3. In case the discrepancy pertains to reconciliation issue of outward supply, in such case the reason of difference should be find out and the reconciliation in the tabular form along with reason of difference may be provided as reply in respect of such discrepancy. Further, where only the information about outward supply is required then only that information to be provided.
4. In case the discrepancy pertains to excess input tax credit claimed in GSTR-3B as against GSTR-2A. In that case, if the period of scrutiny of return pertains to FY 2017-18 and FY 2018-19, in that case please refer Circular No. 183/15/2022-GST dated December 27, 2022, which clearly says GSTR-2A is not relevant to determine eligibility of input tax credit in FY 2017-18 and FY 2018-19 and the input tax credit is to be availed on self-assessment basis subject to fulfillment of other conditions i.e. Section 16, Section 17 and Section 18. Further, Rule 36(4) may also be referred which came into force only w.e.f. October 9, 2019 and also refer Section 16(2)(aa) of CGST Act, 2017, which also come into force w.e.f. January 1, 2022. While giving reply to said issue, given circular and provisions may be referred.
5. Gather the required documents basis on which you are submitting your reply at one place. Further, the most relevant documents should also be attached as Annexure to your reply and submit on the GST portal.
6. If you think personal hearing would be better to explain the reason of discrepancies to officer, then specifically mention in the reply for personal hearing and also select the option for hearing on the GST portal as well.
7. After submitting the reply follow up with the department for dropping the proceedings or order to be issued by the department.

In conclusion, handling a GST return scrutiny notice in ASMT-10 requires updated knowledge in GST, proper preparation of reply, documentation and cooperation with the GST department. By doing so, you can ensure that the scrutiny process is completed smoothly and without any issue.     

Discussions to this article

[Senguttuvan Kuppusamy]

Dear Sirs/Madams

Sec 16(2)(aa) - the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37

This clause or the 16(2)(c), is laying the responsibility on the receipient to ensure the supplier is complying.

1. It is impossible for buyer to do - Buyer cannot be made responsible for the fault seller

2. If the buyer has to ensure the seller to remit tax, then what is the Tax Administration eating so much of revenue is doing

3. There are ocassions, we have seen the authorities collected tax from both the parties - buyer who took credit and seller who didn't remit along with interest and penalty. Is this not fair?

This unfairness is the reasons for tax evasion; in the exercise of gaining what's lost, one is into tax evasion

Supreme Court should consolidate all the petitions before other High Courts on this issue and decide the matter