notice u/s 61 in form ASMT 10

[FARIDUDDIN AHMAD]

my client received intimation u/s 61 regarding short payment of tax declared in GSTR 1 and paid through GSTR 3B and excess Av ailment of ITC through GSTR 3B compared to reflected in GSTR 2 also asked to submit reply along with the balance sheet profit and loss statement, details of direct and indirect expenditure, ledger and bank statement requiring clarification regarding geniuses of ITC availed. further more information has been asked to provide about details of payment and period of payment to check the time limit of 180 days. my question is wether jurisdiction to asked for documents and clarification lies u/s 61 in Form ASMT-10.

[Shilpi Jain]

In case of scrutiny of returns they should ideally only ask for reply from the taxpayer along with whatever is necessary to be submitted for that.

Any other details required to be asked separately and cannot be done part of scrutiny of returns

[KASTURI SETHI]

Sh. Fariduddin Ahmad Ji,

Instead of challenging the jurisdiction of the proper officer or the department, your client should be able to justify whatever has been declared in the returns with the books of account (statutory records) other records asked for by the department. Read Rule 57 of CGST Rules, 2017.

[GUNASEKARAN K]

Section 61 – Scrutiny of returns U/s 61 of CGST Act 2017

(1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, 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 73 or section 74.

[Amit Agrawal]

Kindly refer to discussion under subject-line as Validity of Improper ASMT 10 & Section 61 of CGST under Issue-ID: 118494

[Amit Agrawal]

Also, kindly refer to discussion under subject-line as SCN RECEIVED Notice Under Sec 61-FY 2017.18under Issue-ID: 118428

[Padmanathan KV]

In this case, you cannot ignore the ASMT-10 and definitely reply to the same. However, when replying kindly be mindful of information/ data you are sharing to the Department.

ASMT-10 is only a scrutiny of return and not a SCN. SCN may or may not follow ASMT-10.

Hence, give only a reconciliation of difference between GSTR-1 and GSTR-3B and also between GSTR-2A and GSTR-3B. Pls note that the latter is also covered by Circular 183 and hence get Certificate from supplier/ CA as the case may be.

There ends the matter. There is no requirements to give any other details at this stage of proceedings as your objective now is only to clarify the discrepancy in the returns in ASMT-11.

Regarding payment within 180 days, in my opinion, cannot be sought in Section 61 proceedings. Hence, politely reply saying it is not a "discrepancy" on scrutiny of returns.

Again, proceedings u/s 61 cannot be widened to an audit or inquiry or investigation as all these proceedings have different checks and balances in built into them.

AI Summary

Scrutiny of returns may require reconciliations and can prompt enforcement action if discrepancies remain unexplained.
The ASMT-10 notice is a scrutiny of returns requiring the taxpayer to explain and justify discrepancies in declared returns (notably reconciliations between return forms and supporting supplier confirmations); it is limited to verifying correctness and seeking explanation, is not itself a show cause notice or audit, and may lead to further action if explanations are unsatisfactory.