Now GST Scrutiny will soon become a regular thing Central Board of Indirect Taxes and Customs (CBIC) has directed the department on Standard Operating Procedure (SOP) 22. issued instructions toRa March 2022 to check GST returns for FY 2017-18 and 2018-19.
The instructions mainly mention the modes of selection of cases for scrutiny, scrutiny schedule and time-limit. SOP is issued by CBIC to ensure uniformity in selection of investigations and other related procedures.
Where any return is selected for scrutiny, the officer shall inform the registered taxpayer about the discrepancies found therein. Form GST ASMT 10.
A registered person can admit the discrepancy mentioned and pay tax, interest and any other amount and inform the same Form GST ASMT 11, If the explanation is found acceptable, the proper officer shall inform the same accordingly. Form GST ASMT 12.
If no satisfactory explanation is presented within 30 days or the person failed to take corrective action after admitting the discrepancies, and the appropriate authority may initiate appropriate action.
Aadhar for checking GST return are listed below:-
- Tax Liability on Outward Supplies:
The tax liability of outward taxable supplies and outward taxable supplies (zero-rated) declared in Form GSTR 3B can be verified with the respective tax liabilities in respect of outward taxable supplies declared in Form GSTR 1.
Where the tax liability of supplies declared in Form GSTR 1 is more than the liability declared in Form GSTR 3B, it may indicate short payment of taxes.
- Tax Liability on Inward Supplies (RCM):
- ITC availed in Form GSTR 3B-
Gain of ITC in excess of the liability discharged on account of reverse charge supply may indicate either short payment of tax liability on account of RCM supplies or over availing of input tax credit in respect of RCM supplies.
- ITC in respect of inward supplies attracting reverse charge as per Form GSTR 2A-
Where the RCM supply declared in FORM GSTR-3B is less than the inward supply attracting reverse charge as per the details available in FORM GSTR-2A, it may indicate short payment of tax liability on account of RCM supply.
- Taxes/cess paid in cash as per GSTR 3B-
Where the tax liability offset in cash is less than the liability arising on account of reverse charge, this may indicate underpayment of tax.
- ITC on Inward Supply from ISD:
ITC received in respect of inward supplies from ISD in Form GSTR 3B can be verified from GSTR 2A.
- ITC on all other ITCs:
The ITC received in respect of “all other ITC” in Form GSTR 3B can be verified with Form GSTR 2A. Also, the table in Form GSTR 2A contains the details of supplies attracting forward and reverse charge. Therefore, only those supplies against which there is ‘No’ or ‘N’ can be considered.
- Outward Supplies and TDS and TCS Credit:
The taxable value declared on account of “outward taxable supplies (other than zero-rated, zero-rated, and exempt)” in Form GSTR 3B cannot be less than the net amount liable to TCS and TDS credit in Form GSTR 2A. Any discrepancy may indicate underpayment of taxes.
- Outward Supply and Liability in E-Way Bill:
a registered The person is required to declare the details of all outward supplies. Therefore, the liability declared in Form GSTR 3B should not be less than the tax liability declared in the e-way bill.
- ITC from taxpayers whose registration has been cancelled:
It may be verified whether the person has availed ITC in respect of invoices or debit notes issued by the suppliers after the effective date of cancellation of his registration as the recipient is entitled to claim ITC in respect of such invoices or debit notes. Not there.
- ITC on non-filing of GSTR 3B:
Where GSTR 3B has not been filed, the status in GSTR 2A will show as “No” which indicates that the supplier has furnished the details in GSTR 1 but has not furnished the return in GSTR 3B for the relevant tax period . The availability of ITC in respect of such challans/debit notes may be checked.
- ITC claimed on returns filed after due date:
If any return in Form GSTR-3B is furnished after the due date by the registered person under investigation, then any ITC taken therein is unacceptable.
(For FY 2017-18, ITC was allowed to be availed till the due date of furnishing of return in Form GSTR 3B for March 2019.,
- ITC on import of goods:
The ITC received in Form GSTR 3B will be verified with the details in Form GSTR 2A. If required, the details of import can be cross verified from ICEGATE portal.
- Reversal of ITC:
Registered person avails and reverses ITC in Form GSTR 3B. It may be verified whether the necessary modifications have actually been made by the registered person.
- interest paid:
It can be verified whether the interest payable on delayed payment of tax has actually been paid by the registered person.
- Payment of Late Fee:
Verify whether the late fee payable for late filing of returns/statements has actually been paid by the registered person.
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