The changes are introduced in the GST Act. The changes have come in the light of increasing bog...
Under Section 61 of the CGST Act 2017, a proper officer can scrutinize a return and related particulars furnished by the registered person. This is done to verify a GST return and inform the person of any inaccurate information contained therein. The provisions for such scrutiny can be found under Section 61 of the Central Goods & Service Tax Act, 2017 & Rule 99 of the CGST Rules, 2017. An online scrutiny of returns is not yet available. Therefore, the Central Board of Indirect Taxes and Customs issued a detailed SOP (Standard Operating procedure) to ensure uniformity while selecting returns for the purpose of scrutiny. In this article, we shall discuss some of the key factors which can necessitate the need for scrutiny of GST Return by the proper officer.
So the proper officer can perform scrutiny of the GST return based on a number of factors. After such scrutiny, the registered person is informed about the discrepancy and explanation is sought from the person. In case where no satisfactory explanation is provided by the person within a period of 30 days or in case where the registered person after being informed about such discrepancy fails to take a corrective action in the return, the proper officer can initiate appropriate action including those under section 65, section 66, section 67, or proceed to determine the tax and other dues under section 73 or section 74.
A proper officer can prepare month-wise schedule for scrutiny regarding all GSTINs selected. The priority can be based on the revenue implication involved. The proper officer will carry out scrutiny of 3 GSTINs every month.
Selection of the returns to be scrutinised by the proper officer will be done based on the robust risk parameters decided by the government. The following parameters have been identified by the government for this purpose however the said list is indicative and not exhaustive, the proper officer can consider other parameters for the purpose of scrutiny:
Rule 99 of the CGST Rules of 2019 provides that in case any discrepancy is found, the proper officer shall notify the registered person by issuing a notice in Form GST ASMT 10 seeking the explanation of the person within 30 days time from the date of serving of notice or a period as may be permitted by him and where possible quantifying the tax amount, interest and any other amount payable in relation to such discrepancy.
The registered person can accept the discrepancy and make payment of the tax amount and any other amount arising from such discrepancy and notify the same or provide with an explanation on the discrepancy found in Form GST ASMT- 11. If the explanation so provided by the person is acceptable then the person will be informed however in case there is no satisfactory explanation then appropriate action can be initiated by the proper officer.
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