AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Standard Operating Procedure (SOP) for Scrutiny of returns for FY 2017-18 and 2018-19
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....) is being issued in order to ensure uniformity in selection/ identification of returns for scrutiny, methodology of scrutiny of such returns and other related procedures 2. Relevant statutory provisions 161/17 27/04/2022 2.1 Section 61 of the DGST Act, read with rule 99 of the DGST Rules, provides for scrutiny of returns. The same are reproduced below for reference: Section 61. Scrutiny of returns: (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 prop....
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....pancy and pays the tax, interest and any other. amount arising from such discrepancy or where the explanation furnished by the registered person-is found acceptable, conclude the proceedings after informing the registered person. (e) Where no satisfactory explanation is furnished by the registered person or where the registered person, after accepting the discrepancy, fails to pay the tax, interest and any other amount arising from such discrepancy, initiate appropriate action including those under section 65 or section 66 or section 67, or determination of tax and other dues under section 73 or section 74 of the DGST Act. Page 2 of 13 K 3. Ref. Instruction No. 02/2022-GST dated 22.03.2022 3.1 Selection of returns for scrutiny Selection of returns for scrutiny is to be based on specific risk parameters. For this purpose, the Directorate General of Analytics and Risk Management (DGARM) has been assigned the task to select the GSTINS registered with the Delhi tax authorities, whose returns are to be scrutinized, and to communicate the same to the field formations from time to time through the DDM portal (to the nodal officer of Department of Trade & Taxes) for fur....
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....age 3 of 13 5.2 Ref. Instruction No. 02/2022-GST dated 22.03.2022 For convenience of proper officers, an indicative list of parameters to be verified is enclosed a Annexure B. It may be noted that the said list is only indicative, and not exhaustive. The proper officer may also consider any other parameter, as s/he may deem fit, for the purpose of scrutiny. 6.3 It may be noted that at this stage, the proper officer is expected to rely upon the information available with him/her or with the department. As far as possible, scrutiny of returns should have minimal interface between the proper officer and the registered person and, there should normally not be any need for seeking documents/ records from the taxpayers before issuance of FORM GST ASMT-10. 6.4 The proper officer shall issue a notice to the registered person in FORM GST ASMT-10 informing him/her of the discrepancies noticed and seeking his/her explanation thereto. While issuing such notice, the Proper Officer may, as far as possible, quantify the amount of tax, interest and any other amount payable in relation to such discrepancies. It may also be ensured that the discrepancies so communicated may, as far a....
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....conducted in time bound manner, so that necessary action to safeguard revenue may be taken up expeditiously. In this regard, the following timelines may be observed by all concerned: S.no I) Timeline/Frequency From time to time II) III) IV) ડ V) VI) VII) VIII) IX) Process/Event Communication of list of GSTINs selected for scrutiny (by DGARM to the nodal officer of Trade & Taxes) Distribution of the list of GSTINs selected for scrutiny by the nodal officer to the proper officers concerned Finalization of scrutiny schedule with the approval of the concerned Zonal In-charge Sharing the scrutiny schedule by the proper officer Issuance of notice by the proper officer for intimating discrepancies in FORM GST AMT-10, where required Reply by the registered person in FORM GST ASMT-11 Issuance of order in FORM GST ASMT- 12 for acceptance of reply furnished by the registered person, where applicable Initiation of appropriate action for determination of the tax and other dues under section 73 or section 74, in cases where no reply is furnished by the registered person Initiation of appropriate action for determination of the tax and other dues unde....
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....to the Commissioner, State Tax by the zonal-In-Charge of the concerned zone by 20th day of the succeeding month. 9. Till the time scrutiny module is made available on the GST portal, the aforesaid interim procedure for scrutiny of returns may be conducted on manual basis. Any communication with the taxpayers for the purpose of scrutiny shall be made as per provisions of DGST Act, 2017. 10. All zonal In-charges are requested to closely monitor timely scrutiny of returns of the identified GSTINS within their jurisdictions. 11. Difficulties, if any, in implementation of these instructions may be informed to the Commissioner. No. F.3(432)/GST/Policy/2022/ 1209-1223 Copy forwarded for information and necessary action to: Any 194 (ANKUR GARG) COMMISSIONER (STATE TAX) Dated: 26/04/2022 1. Joint Director (IT), Department of Trade & Taxes, GNCT of Delhi, Vyapar Bhawan I.P. Estate, New Delhi-02 for uploading the circular on the website of the department. 2. PS to the Commissioner, Department of Trade & Taxes, GNCT of Delhi, Vyapar Bhawan I.P. Estate, New Delhi-02 3. Guard File. Amelle 26/4/2012 (VIVEK MITTAL) ASSISTANT COMMISSIONER (POLICY) 13/04/20 Page 6 of 13 ....
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....of such details by the corresponding supplies in their FORM GSTR-1, the details of such amendments are communicated in table 4 and table 5 respectively. However, the details of such inward supplies from unregistered persons are not communicated in FORM GSTR-2A, as only registered persons furnish FORM GSTR-1. Moreover, details of ITC on account of import of services also are not communicated in FORM GSTR-2A. As such, the reverse charge supplies declared in table 3.1(d) of FORM GSTR-3B cannot be less than the inward supplies attracting reverse charge as available in the above mentioned tables of FORM GSTR-2A. Page 8 of 13 Ref. Instruction No. 02/2022-GST dated 22.03.2022 Where the RCM supplies declared in table 3.1(d) of FORM GSTR-3B are less than the inward supplies attracting reverse charge as per details available in FORM GSTR-2A, it may indicate short payment of tax liability on account of RCM supplies. It may be noted that the said tables in FORM GSTR-2A contain details of supplies attracting forward as well as reverse charge. Therefore, only the supplies against which there is "Yes" or "Y" in column 14 of Table 3, column 16 of Table 4, column 15 of Table 5 and c....
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....dit as per Column 6 of Table 9 of FORM GSTR-2A. A discrepancy on the aforementioned count may indicate short payment of tax. Page 9 of 13 Ref. Instruction No. 02/2022-GST dated 22.03.2022 46. Liability on account of outward supplies in Table 3.1(a) and 3.1(b) of FORM GSTR-3B should be verified with the Tax liability as declared in e-way bills. Rule 138 of the DGST Rules mandates generation of e-way bill before commencement of movement of goods of consignment value exceeding fifty thousand rupees (in relation to supply, or for reasons other than supply, or due to inward supply from unregistered person). Besides such supplies, the registered person may also have such other supplies which do not require generation of e-way bills, such as supply of services or supplies as specified in sub-rule (14) of rule 138, etc. Therefore, e-way bills capture a part of supplies made by the registered person. However, in table 3.1 of FORM GSTR-3B, the registered person is required to declare details of all outward supplies. Accordingly, liability declared in table 3.1 (a) and (b) of FORM GSTR-3B should not be less than tax liability as declared in the e-way bills. 7. Claim of IT....
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.... Page 10 of 13 Ref. Instruction No. 02/2022-GST dated 22.03.2022 410. ITC availed in respect of "Import of goods" in Table 4(A)(1) of FORM GSTR-3B may be verified with corresponding details in Table 10 and Table 11 of FORM GSTR-2A. Wherever required, the details of such imports may also be cross-verified from ICEGATE portal. 11. Whether the registered person has made reversals of ITC in accordance with provisions of rule 42 and rule 43 of the DGST Rules. Rule 42 of the DGST Rules provides for manner of determination of input tax credit in respect of inputs or input services and reversal thereof. Rule 43 provides for manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases. The registered person avails ITC in table 4(A) of FORM GSTR-3B and reverses in Table 4(B). It may be verified whether requisite reversals have actually been made by the said registered person. 12. Whether the registered person has paid interest liability in terms of section 50. As per section 50 of the DGST Act a registered person is required to pay interest on delayed payment of tax. It may be verified whether interest payable as per the pro....