Question 7 - What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed under section 45 of MGL?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 13 Assessment and Audit
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Recourse for unexplained return discrepancies: officer may order audit, special audit, inspection or tax determination. If a taxable person fails to provide a satisfactory explanation within 30 days (extendable by the Proper Officer) or fails to take corrective action after ... Summary
Recourse for unexplained return discrepancies: officer may order audit, special audit, inspection or tax determination.
If a taxable person fails to provide a satisfactory explanation within 30 days (extendable by the Proper Officer) or fails to take corrective action after accepting a discrepancy under section 45 of MGL, the Proper Officer may: conduct an audit under Section 49; direct a special audit under Section 50 by a nominated Chartered Accountant or Cost Accountant; undertake inspection, search and seizure under Section 60; or initiate tax determination proceedings under Section 51.
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