CBIC Issues
SOP for Online Scrutiny of Returns for FY 2019-20 Onwards in ASMT Forms
·
DG
Systems Develops Online GST Scrutiny Module with User Manual
·
Selection
of returns for scrutiny and communication of the same to the field formations
·
Scrutiny
Schedule
·
Process
of scrutiny by the Proper Officer
·
Timelines
for scrutiny of returns
·
Reporting
and Monitoring
·
Advisory No. 22/2023- Returns dated
16.05.2023 has also been issued by DG Systems
Ø Detailed
workflow for communication of discrepancies noticed, in relation to the details
furnished in the returns, by the proper officer in FORM GST ASMT-10
Ø The
risk parameters, in respect of which risk has been identified for a particular
GSTIN, and the amount of tax/ discrepancy involved in respect of the concerned
risk parameters (i.e. likely revenue implication),
will also be shown on the scrutiny dashboard of the proper officer for their
convenience.
Ø The
proper officer shall, therefore, rely upon the latest available data.
Ø A
Scrutiny schedule in the format specified in Annexure A of Instruction
02/2022- GST dated 22nd March 2022.
Ø The
proper officer shall conduct scrutiny of returns pertaining to minimum of 4
GSTINs per month. Scrutiny of returns of one GSTIN shall mean scrutiny of
all returns pertaining to a financial year for which the said GSTIN has been
selected for scrutiny.
Ø The
proper officer is expected to rely upon the information available with him on
records.
Ø There
should normally not be any need for seeking documents/ records from the
registered persons before issuance of FORM GST ASMT-10.
Ø The
proper officer shall issue a notice to the registered person in FORM GST
ASMT-10 through the scrutiny functionality on ACES-GST application,
informing him of the discrepancies noticed and seeking his explanation thereto.
Ø Discrepancies
so communicated should, as far as possible, be specific in nature and not vague
or general.
Ø The
proper officer is required to scrutinize all the returns pertaining to the
corresponding Financial Year under consideration and a single compiled notice
in FORM GST ASMT-10 may be issued to the registered person for that
financial year.
Ø The
registered person may accept the discrepancy ment ioned in the said notice, and pay the tax, interest and any
other amount arising from such discrepancy and inform the same or may furnish
an explanation for the discrepancy in FORM GST ASMT-11, through the
common portal, to the proper officer within the time period prescribed under
rule 99 of CGST Rules.
Ø In
case no satisfactory explanation is furnished by the registered person in FORM
GST ASMT-11 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 pay the tax, interest and
any other amount arising from such discrepancies, the proper officer, may
proceed to determine the tax and other dues under section 73 or section 74 of
CGST Act.
Ø Needless
to mention, for proceedings under section 73 or section 74 of CGST Act,
monetary limits as specified in Circular No. 31/05/2018-GST dated 9th
February 2018 shall be adhered to.
Ø The
proper officer is of the opinion that the matter needs to be pursued further
through audit or investigation to determine the correct liability of the said
registered person, then he may take the approval of the jurisdictional
Principal Commissioner / Commissioner through the divisional Assistant/ Deputy Commissioner,
through e-file or other suitable mode, for referring the matter to the Audit
Commissionerate or anti-evasion wing of the Commissionerate, as the case may
be.
Ø MIS
report ‘Monthly Scrutiny Progress Report’ (in the format specified in Annexure-D
of Instruction No.02/2022 dated 22.03.2022) displays summary information of
the status of scrutiny of returns for the selected month of a financial year
for the selected formation.
Ø ACES-GST
application only for the Financial Year 2019-20 onwards, the procedure
specified in Instruction No. 02/2022 dated 22.03.2022 shall continue to
be followed for the scrutiny of returns for the financial years 2017-18 and
2018-19.
[CBIC Instruction No. 02/2023-GST dated
26 May, 2023]
Subject:
Standard Operating Procedure for Scrutiny of Returns for FY 2019-20 onwards.
Attention
is invited to the Instruction No. 02/2022-GST dated 22nd March, 2022, wherein a
Standard Operating Procedure (SOP) was provided for scrutiny of returns under
section 61 of Central Goods and Services Tax Act, 2017 (hereinafter referred to
as “the CGST Act) read with rule 99 of Central Goods and Service Tax Rules,
2017 (hereinafter referred to as “the CGST Rules”) for FY 2017-18 and 2018-19.
It was mentioned in the said instruction that the said SOP was issued as an
interim measure till the time a Scrutiny Module for online scrutiny of returns
is made available on the ACES-GST application.
1.2
In this regard, it is to inform that DG
Systems has developed functionality “Scrutiny of Returns”, containing the
online workflow for scrutiny of returns in the CBIC ACES-GST application.
Advisory No. 22/2023- Returns dated 16.05.2023 has also been issued by DG
Systems in this regard, along with a User Manual providing for the detailed
workflow of the said functionality. The GSTINs selected for scrutiny for the
Financial Year 2019-20 have also been made available on the scrutiny dashboard
of the proper officers on ACES-GST application.
1.3
The functionality provides for the detailed workflow for communication of discrepancies
noticed, in relation to the details furnished in the returns, by the proper
officer in FORM GST ASMT-10 to the registered person, receipt of
reply from the registered person in FORM GST ASMT-11, issuance of order
in FORM GST ASMT-12 or taking further action for issuance of show cause
notice under Section 73 or 74 of CGST Act, 2017 or for referring the matter for
Audit or investigation, as the case may be.
2.
In view of this, the SOP for scrutiny
of returns provided in the Instruction No. 02/2022- GST dated 22nd March 2022
stands modified to the following extent in respect of scrutiny of returns for
financial years 2019-20 onwards:
3.
Selection of returns for scrutiny and communication of the same to the field formations:
3.1
Selection of returns for scrutiny will
be done by the Directorate General of Analytics and Risk Management (DGARM)
based on various risk parameters identified by them. DGARM will select the
GSTINs registered with the Central Tax authorities, whose returns are to be
scrutinized for a financial year, based on identified risk parameters. The
details of GSTINs selected for scrutiny for a financial year will be made
available by DGARM through DG Systems on the scrutiny dashboard of the
concerned proper officer of Central Tax on ACES-GST application.
3.2
The details of the
risk parameters, in respect of which risk has been identified for a particular
GSTIN, and the amount of tax/ discrepancy involved in respect of the concerned
risk parameters (i.e. likely revenue implication), will also be
shown on the scrutiny dashboard of the proper officer for their convenience. It
is re-emphasized that as the data made available on the dashboard has been
generated at a particular point of time for calculation of risk parameters,
this data may undergo change at the time of scrutiny of returns, due to
subsequent compliances carried out by the taxpayer or by the suppliers of the
taxpayer. The proper officer shall, therefore, rely upon the latest available
data.
4.
Scrutiny Schedule:
4.1
Once the details of GSTINs selected for
scrutiny for a financial year are made available on the scrutiny dashboard of
the concerned proper officer of Central Tax on ACES-GST application, the proper
officer, with the approval of the divisional Assistant/ Deputy Commissioner,
shall finalize a scrutiny schedule in the format
specified in Annexure A of Instruction 02/2022- GST dated 22nd March 2022. Such
scrutiny schedule will specify month- wise schedule for scrutiny in respect of
all the GSTINs selected for scrutiny. While preparing the scrutiny schedule,
the scrutiny of the GSTINs, which appear to be riskier based on the likely
higher revenue implication indicated on the dashboard, may be prioritized. The
Principal Commissioner/ Commissioner of the concerned Commissionerate will
monitor and ensure that the schedule identified in Scrutiny Schedule is adhered
to by the officers under his jurisdiction.
5.
Process of scrutiny by the Proper Officer:
5.1
The Proper Officer shall scrutinize the
returns and related particulars furnished by the registered persons to verify
the correctness of the returns. Information available with the proper officer
on the system in the form of various returns and statements furnished by the
registered person and the data/ details made available through various sources
like DGARM, ADVAIT, GSTN, E-Way Bill Portal etc. may be relied upon for this
purpose.
5.2
As mentioned in Para 3.2 above, for the
convenience of proper officers, details of the risk parameters involving risk/
discrepancies in respect of the GSTIN, along with the amount of tax/
discrepancy involved in respect of the concerned risk parameters (i.e. likely revenue implication), will be made available in
the scrutiny dashboard of the proper officer. Besides, DGARM will also make
available to the field formations the details of all the risk parameters taken
into consideration by them for the selection of GSTINs for scrutiny of returns
for the particular financial year. In addition to these parameters, proper
officer may also consider any other relevant parameter, as he may deem fit, for
the purpose of scrutiny.
5.3
It may be noted that at this stage, the proper officer is expected to rely upon the
information available with him on records. As far as possible, scrutiny of
return 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 registered persons before issuance of FORM GST ASMT-10.
5.4 The proper officer shall issue a notice
to the registered person in FORM GST ASMT-10 through the scrutiny
functionality on ACES-GST application, informing him of the discrepancies
noticed and seeking his explanation thereto.
There may be cases where the registered person may already have made additional
payment of tax, cess, interest, etc. after filing of
the returns for the relevant tax period, through FORM DRC-03. The
payments thus made through FORM DRC-03 may also be taken into
consideration while communicating discrepancies to the taxpayer in FORM GST
ASMT-10. The notice in FORM GST ASMT-10, issued by the proper
officer through scrutiny functionality on ACES-GST application, shall be
communicated by the system to the concerned registered person on the common
portal and therefore, there will be no need for sending any manual
communication of notice in FORM GST ASMT-10 by the proper officer to the
registered person separately. 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 should, as far as
possible, be specific in nature and not vague or general. In this regard,
the user manual issued by DG Systems may be referred to regarding the detailed
procedure for issuance of FORM GST ASMT-10 on scrutiny functionality on
ACES-GST application. The proper officer shall mention the parameter-wise
details of the discrepancies noticed by him in FORM GST ASMT-10 and
shall also upload the worksheets and supporting document(s)/ annexures, if any.
5.5
For each GSTIN identified for scrutiny,
the proper officer is required to scrutinize all the
returns pertaining to the corresponding Financial Year under consideration and
a single compiled notice in FORM GST ASMT-10 may be issued to the
registered person for that financial year.
5.6 On receipt of such notice in FORM
GST ASMT-10 on common portal, the registered person may accept the
discrepancy ment ioned in
the said notice, and pay the tax, interest and any other amount arising from
such discrepancy and inform the same or may furnish an explanation for the
discrepancy in FORM GST ASMT-11, through the common portal, to the
proper officer within the time period prescribed under rule 99 of CGST Rules.
5.7
The reply furnished by the registered
person in FORM GST ASMT-11 on the common portal shall be made available
to the concerned proper officer in the scrutiny dashboard on ACES-GST
application. Where the explanation furnished by the registered person or the
information submitted in respect of acceptance of discrepancy and payment of
dues is found to be acceptable by the proper officer, he shall conclude the proceedings
by informing the registered person in FORM GST ASMT-12 through the
scrutiny functionality on ACES-GST application.
5.8
In
case no satisfactory explanation is furnished by the registered person in FORM
GST ASMT-11 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 pay the tax, interest and
any other amount arising from such discrepancies, the proper officer, may
proceed to determine the tax and other dues under section 73 or section 74 of
CGST Act. Needless to mention, for proceedings under section 73 or section 74
of CGST Act, monetary limits as specified in Circular No. 31/05/2018-GST
dated 9th February 2018 shall be adhered to. The user manual issued by DG
Systems may be referred to for the procedure for initiating proceedings under
section 73 or 74 of the CGST Act on the scrutiny functionality on ACES-GST
application.
5.9 However, if the proper officer is of
the opinion that the matter needs to be pursued further through audit or
investigation to determine the correct liability of the said registered person,
then he may take the approval of the jurisdictional Principal Commissioner /
Commissioner through the divisional Assistant/ Deputy Commissioner, through e-file
or other suitable mode, for referring the matter to the Audit Commissionerate
or anti-evasion wing of the Commissionerate, as the case may be.The copy of the said approval needs to be uploaded while
referring the matter to the concerned formation through the scrutiny
functionality, as per the procedure detailed in the user manual issued by DG
Systems.
6.
Timelines for scrutiny of returns:
6.1
Scrutiny of returns is to be conducted
in a time bound manner, so that the cases may be taken to their logical conclusion
and that too expeditiously. In this regard, the following timelines may be
observed by all concerned:
|
S.No. |
Process/Event |
Timeline/ Frequency |
|
(i) |
Communication of GSTINs selected for scrutiny by DGARM on ACES GST
Application for a financial year |
From time to time. |
|
(ii) |
Finalization of scrutiny schedule with the approval of the concerned
Assistant/ Deputy Commissioner |
Within seven working days of receipt of the details of the concerned
GSTINs on ACES- GST application |
|
(iii) |
Issuance of notice by the proper officer for intimating discrepancies
in FORM GST ASMT-10, where required |
Within the month, as mentioned in scrutiny schedule for scrutiny for
the said GSTIN. |
|
(iv) |
Reply by the registered person in FORM GST ASMT-11 |
Within a period of thirty days of being informed by the proper officer
in FORM GST ASMT-10 or such further period as may be permitted by the
proper officer |
|
(v) |
Issuance of order in FORM GST ASMT- 12 for acceptance of
reply furnished by the registered person, where applicable |
Within thirty days from receipt of reply from the registered person in
FORM GST ASMT- 11 |
|
(vi) |
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 |
Within a period of fifteen days after completion of the period of
thirty days of issuance of notice in FORM GST ASMT-10 or such further
period as permitted by the proper officer |
|
(vii) |
Initiation of appropriate action for determination of the tax and
other dues under section 73 or section 74, in cases where reply is furnished
by the registered person, but the same is not found acceptable by the proper
officer |
Within thirty days from receipt of reply from the registered person in
FORM GST ASMT- 11 |
|
(viii) |
Reference, if any, to the Audit Commissionerate or the anti-evasion
wing of the Commissionerate for action, under section 65 or section 66 or
section 67, as the case may be. |
Within thirty days from receipt of reply from the registered person in
FORM GST ASMT- 11 or within a period of forty-five days of
issuance of FORM GST ASMT-10, in case no explanation is furnished by
the registered person. |
6.2
It may also be ensured that the
requisite actions must be initiated well ahead of the time limits as specified
in section 73 or section 74 of the CGST Act, as the case may be, in respect of
a return identified for scrutiny for a financial year.
7.
Reporting and Monitoring:
7.1
The details of action taken by the
proper officer in respect of GSTINs allocated to him for scrutiny will be
available in the form of two MIS reports in the scrutiny dashboard on the ACES-
GST application. MIS report ‘Monthly Scrutiny
Progress Report’ (in the format specified in Annexure-D of Instruction
No.02/2022 dated 22.03.2022) displays summary information of the status of
scrutiny of returns for the selected month of a financial year for the selected
formation. Besides, the GSTIN-wise details of action taken in respect of
scrutiny of returns in respect of allotted GSTINs is made available in the MIS
report ‘Scrutiny Register’ (in the format specified in Annexure-C of
Instruction No.02/2022 dated 22.03.2022) on the scrutiny dashboard.
7.2
In view of this, the requirement of
compiling and sending the Monthly Scrutiny Progress Report by the CGST zones to
DGGST is hereby dispensed with for the Financial Year 2019-20 onwards. However,
the CGST zones will continue to send Monthly Scrutiny Progress Reports to DGGST
in respect of the Financial Years 2017-18 and FY 2018-19 till the completion of
scrutiny of returns for these financial years, as per the timelines mentioned
in Instruction No.02/2022- GST dated 22nd March, 2022.
7.3
It is also added that the progress of
the scrutiny exercise as per the scrutiny schedule shall be monitored by the
jurisdictional Principal Commissioner/ Commissioner on regular basis.
8.
It is clarified that since the scrutiny
functionality has been provided on ACES-GST application
only for the Financial Year 2019-20 onwards, the procedure specified in Instruction
No. 02/2022 dated 22.03.2022 shall continue to be followed for the scrutiny
of returns for the financial years 2017-18 and 2018-19.
9.
The online scrutiny functionality on
ACES-GST application will further boost the efforts of the department to
leverage technology and risk-based tools to encourage self-compliance and to
conduct scrutiny of returns with minimal interaction with the registered
person. All Principal Chief Commissioners (PCCs)/ Chief Commissioners (CCs) of
CGST Zones are requested to closely monitor timely scrutiny of returns of the
selected GSTINs within their jurisdictions.
10.
Difficulties, if any, in implementation
of these instructions may be informed to the Board
F. No. CBIC- 20006/04/2022-GST