Scrutiny Of Returns under GST Act - Section 61 - GST Ready Reckoner - GST

Scrutiny Of Returns under GST Act. [ Section 61 of CGST Act read with Rule 99 of CGST Rule ] The proper officer may scrutinize the returns and related particulars to verify the correctness of the returns. Inform the discrepancies noticed and seek his explanation thereto; ( Form GST ASMT-10) The Registered person files his explanation in Form GST ASMT11 If found acceptable, no further action shall be taken. ( Form GST ASMT-12) If not acceptable, initiate appropriate action under Section 65 / or Section 66 / or Section 67 or proceed under Section 73 or Section 74 [ or Section 74A . (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) Inserted vide Finance (No. 2) Act, 2024 ] Proper officer means for the section 61 of CGST Act :- Circular No. 3 / 3 / 2017 dated 5th July, 2017 - GST Clarifies that Superintendent of Central Tax has been Designated as proper officer for the purpose of scrutiny under section 61. When does a tax official need to conduct Scrutiny of Returns? Any discrepancy found in return on the basis of risk parameters or Suo-moto, on examination of returns. What will the tax official do? Section 61(3) Issue notice in Form GST ASMT 10 and seek clarification. 30 days time for reply. In case of Failure ,the proper officer may initiate appropriate action including those under Section 65 / or Section 66 / or Section 67 , or proceed to determine the tax and other dues under Section 67 or proceed under Section 73 or Section 74 [ or Section 74A . (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) Inserted vide Finance (No. 2) Act, 2024 ] . What are the options left to the taxpayer? Either Accept or Dispute : If accepted he can pay Tax, Interest Penalty and submit Reply in Form ASMT 11 (or) he can correct himself in his returns for the month in which the discrepancy accepted. If disputed .. . He can file reply along with copies of evidences, if any. What are the options available to the Tax Official? DROP PROCEEDINGS : When the tax, interest penalty paid by the taxpayer found acceptable (or) If the corrected monthly return filed by the tax payer is found acceptable (or) The reply filed by the taxpayer is acceptable, then he can drop proceedings in Form GST ASMT 12. PROCEED FURTHER : If Reply is not filed by the taxpayer, (or) The reply filed is not satisfactory, (or) If the discrepancy is accepted but the tax is not paid / not corrected himself in his returns for the month in which the discrepancy accepted he can recommend the case either for ADJUDICATION under Section 65, 66, 73, 74 74A or for ENFORCEMENT under Section 67. Procedure For Scrutiny of returns [ Rule 99 ] (1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10 , informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy. (2) The registered person may accept the discrepancy mentioned in the notice issued and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT- 11 to the proper officer. (3) Where the explanation furnished by the registered person or the information submitted is found to be acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12 .