Audit u/s.65 completed for 2017-2023 period. Scrutiny Notice received u/s.61

[Raam Srinivasan Swaminathan Kalpathi]

Our company was subjected to GST department audit for the years 2017-2020 and also from 2020-2023 tax years u/s. 65. Now department has again intimated discrepancy upon scrutiny of Returns u/s. 61 for 2019-20 and 2021-22.  Request the distinguished experts their view and the way forward.  Profuse thanks

AI Summary

GST audit under section 65 followed by section 61 scrutiny clarified as permissible, subject to section 6(2)(b) safeguards A taxpayer audited under GST section 65 for 2017-2023 later received scrutiny notices under section 61 for some of the same periods. Forum experts differed: some argued repeat scrutiny post-audit is impermissible and contrary to CBIC instructions and judicial precedents that discourage overlap between audit and scrutiny, while others maintained there is no express statutory bar, subject to section 6(2)(b) and limitation under sections 73/74. It was noted that ADT-02 does not grant a 'clean chit' and fresh issues or subsequently detected discrepancies may still be examined. The taxpayer ultimately complied, resubmitted records, paid minor late fees, and received closure (ASMT-12) without additional tax demand.