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TMI BlogSCRUTINY OF RETURNS BY PROPER OFFICERX X X X Extracts X X X X X X X X Extracts X X X X ..... e taxpayer. If the proper officer is satisfied with the taxpayer's explanation on discrepancies pointed out, no further action will be taken. (VI) The Directorate General of Analytics and Risk Management (DGARM) selects the GSTIN whose returns are to be scrutinised and communicate the same to the field formations through the DDM portal. The DGARM will make the list of GSTINs available through the DG systems on the scrutiny dashboard of the officers on the ACES-GST application. (VII) The list of parameters for selection of GST returns for scrutiny are as follows- (i) The tax liability in Tables 3.1(a) and (b) of GSTR-3B must match with tax liability in Tables 4, 5, 6. 7A(1), 7B(1), 11A and 11B of GSTR-1 [Net of amendments in Tables 9, 10, and 11(II)]. (ii) Advances adjusted are accurately reflected by reporting the same in Table 11B and Tables 4, 5, 6 and 7 of GSTR-1. (iii) Reporting and paying in cash the exact tax liability under the reverse charge mechanism using Tables 3.1(d) for tax liability and 4(A)(2) and 4(A)(3) for ITC claimed on it in GSTR-3B. The value in GSTR-3B should be more than the eligible ITC in Tables 3, 4, 5 and 6 of GSTR-2A. (iv) ITC claimed in Table ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant factors for Scrutiny of Returns: While scrutinising the returns, certain vital factors need proper verification to ascertain whether the tax liability has been discharged properly and whether the other compliances like availment of ITC, payment of interest, Late fee, etc. is in order. Some of such factors that need to be considered by the Officer while scrutinising the returns, are as under- (i) Tax liability on account of "Outward taxable supplies (other than zero rated, nil rated and exempted)" and "Outward taxable supplies (zero rated)" declared in FORM GSTR-3B may be verified with corresponding tax liability in respect of outward taxable supplies declared in FORM GSTR-1. If the tax liability in respect of supplies declared in FORM GSTR-1 exceeds the liability declared in FORM GSTR-3B, it may indicate short payment of tax. All amendments to invoices need to be checked to confirm whether they are appropriately reflected in GSTR-1 and GSTR-3B. Also, it has to be verified whether the liability reported in GSTR-1 matches the liability reported in the GSTR-9 return. (ii) Tax liability on account of "Inward supplies liable to reverse charge" declared in FORM GSTR-3B may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished the return in FORM GSTR-3B for the corresponding tax period. The availment of ITC in respect of such invoices / debit notes should be checked and appropriate action as per the law should be taken. (vii) If GSTR-3B of a tax period is filed after the last date of availment of ITC in respect of any invoice / debit note then in such cases, no ITC shall be availed in the return, as Section 16(4) of CGST Act, 2017 provides for availment of ITC only till the 30th day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. If any return in FORM GSTR-3B is furnished after such time by the registered person, any ITC availed therein is inadmissible. (viii) ITC availed in respect of "Import of goods" in FORM GSTR-3B may be verified with corresponding details in FORM GSTR-2A. Also, the details of such imports be cross-verified from ICEGATE portal. (ix) Rule 42 of the CGST Rules, 2017 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -10. (XVIII) The scrutiny of returns shall be completed in a specified period to safeguard revenue. Below are some of the timelines: Sr. No. Process Time Line 1 Communicating the list of GSTINs selected for scrutiny by the DGARM to the nodal officer From time to time 2 Communicating the list of GSTINs selected for scrutiny by the nodal officer to the proper officer Within 3 working days from the date of receipt of the list of GSTINs from the DGARM (not applicable for online scrutiny from FY 2019-20 onwards) 3 Finalisation of scrutiny schedule with the Assistant/ Deputy Commissioner Within 7 working days of receipt of the list of GSTINs from the nodal officer (from 19-20 scrutiny onwards, it is available online on ACES portal) 4 Sharing the scrutiny schedule with the DGGST Within 30 days of receipt of the list of GSTINs from DGARM 5 Issue of notice in Form GST ASMT-10 Within a month as specified in the scrutiny schedule 6 Issue of response in GST ASMT-11 Within 30 days of receipt of notice under GST ASMT-10 7 Issue of order in Form GST ASMT-12 Within 30 days of receipt of response in Form GST ASMT-11 8 Initiating action for determining tax under section 73 ..... 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