SCRUTINY OF GST RETURNS: NOTICE AND ITS REPLY

[Dr. Sanjiv Agarwal]

Issue of Notice for Scrutiny of Return

It is mandatory for the Proper Officer to issue a notice in Form ASMT-10 before initiation of scrutiny of return filed by the taxpayer so as to verify its correctness, the said notice may or may not contain the discrepancies already noticed by him, if any on which the Proper Officer may seek explanation from the tax payer. The notice of scrutiny generally contains the following contents:

1. Name and registered address of the taxpayer
2. GSTIN of the taxpayer
3. Tax period to which the return pertains
4. Discrepancies noticed between various forms / returns pertaining to:

1. Outward supplies in relation to B2B, B2C and other supplies
2. Tax invoices, debit notes, credit notes,
3. Discrepancies in ITC and reversal,
4. Discrepancies in Annual Return,
5. Issues relating to Transitional Credit, if any,
6. Various reconciliations,
7. Un-reconciled payments and turnover,

The contents of the Scrutiny notice may vary from case to case depending upon the specific requirements of written verification and extent of underlying discrepancies.

How to Reply to Notice of Scrutiny

Replying to any GST - ASMT-10 notice requires due attention of taxpayer, and readers may follow the following steps:

1. Understand the Notice:
   • Replying to any notice required any person to very carefully understand the reason(s) for issuance of the notice and the amount of discrepancy involved.
   • Response deadline to always be kept in mind and ensuring that the reply is submitted before such time.

2. Gather Documentation:
   • Gather all the relevant documents such as invoices, tax payment receipts, returns filed, and other related records, which will save us time and energy to search for these documents at later stage.

3. Reconcile Records:
   • Carefully compare the records available, with the details as mentioned in the notice and identify any errors or discrepancies which may have been missed at the time of filing of returns.

4. Prepare a Reply:
   • Log in to the GST portal using your credentials and navigate to 'Services' > 'User Services' > 'My Applications'.
   • Select 'Reply to Notice' and choose the relevant notice number.

5. Draft a Detailed Response:
   • Start with a polite salutation and provide the reference number of the notice.
   • Reply to the notice for each point mentioned in the notice by providingexplanations, justifications, and make sure that such reply is supported by relevant documents supporting the reply being submitted.
   • If there are any errors in the notice, highlight and explain them clearly.

6. Attach Supporting Documents:
   • Attach scanned copy of invoices, receipts, and other relevant documents need to be uploaded and it is prudent to endure that all the documents are legible and properly labelled and the scan is clear.

7. Review and Submit:
   • Review the response for factual accuracy, completeness and remember to spell check the reply.
   • Submit the reply on the GST portal and do not forget to save an acknowledgment of the submission for your records.

8. Follow Up:
   • Monitor the status of your response on the GST portal periodically and be prepared to provide additional information in case any, requested by the authorities.
   • Any incomplete information may be supplemented in due course promptly.
   • Follow up with proper officer for conclusion of scrutiny.

Time limit for Reply to Notice

The notice of discrepancy issued by proper office in respect of scrutiny of returns has to be replied within such time not exceeding 30 days from date of service of notice or such further period as may be permitted by proper officer.