How to Handle GST Return Scrutiny Notice-ASMT-10?

How to Handle GST Return Scrutiny Notice-ASMT-10?

If you are registered under GST, it is mandatory for you to submit GST returns as per the regulations of GST law. Nevertheless, there might be situations where you receive a scrutiny notice, specifically ASMT-10, to examine the correctness and comprehensiveness of your GST returns. 

This notice aims to verify the accuracy, correctness & completeness of your GST returns. To assist effectively, we have mentioned some of the major things in managing a GST return scrutiny notice in ASMT-10:

1. Thoroughly read and comprehend the discrepancies emphasized in the notice, and then prepare your response accordingly. It is advisable to address the discrepancies on a paragraph-by-paragraph basis, as they are typically presented in that manner.
2. If the discrepancy relates to the reconciliation problem concerning outward supply, it is essential to identify the reason behind the difference. Prepare a response by providing a tabular form of reconciliation along with an explanation for the difference. In cases where only information regarding outward supply is necessary, provide only that specific information.
3. The discrepancies typically highlighted in the notice pertain to either reconciliation issues or instances where certain information was not provided or was incorrectly provided in the GST returns filed on the portal.
4. If the discrepancy involves an excessive claim of input tax credit in GSTR-3B compared to GSTR-2A, and the scrutiny period pertains to FY 2017-18 and FY 2018-19, please refer to Circular No. 183/15/2022-GST dated December 27, 2022. This circular clearly states that GSTR-2A is not relevant for determining the eligibility of input tax credit in FY 2017-18 and FY 2018-19. The input tax credit should be availed on a self-assessment basis, subject to fulfilling other conditions specified in Section 16, Section 17, and Section 18. Additionally, you may also consider referring to Rule 36(4), which came into effect on October 9, 2019, and Section 16(2)(a) of the CGST Act, 2017, which came into force on January 1, 2022. When responding to this issue, it is recommended to cite the relevant circular and provisions mentioned above.
5. Gather the required documents basis on which you are submitting your reply in one place. Further, the most relevant documents should also be attached as Annexure to your reply and submitted on the GST portal.
6. If you believe that a personal hearing would be beneficial to explain the reasons behind the discrepancies to the officer, kindly include a specific mention in your reply requesting a personal hearing. Additionally, make sure to select the option for a hearing on the GST portal as well. This will ensure that your request for a personal hearing is acknowledged and arrangements can be made accordingly.
7. After submitting your response, it is advisable to maintain contact with the department to inquire about the status of the proceedings and whether the department intends to drop the case or issue an order. It is important to follow up regularly to stay informed about the progress and any potential actions that may be required.

Summing it up, effectively managing a GST return scrutiny notice in ASMT-10 necessitates staying informed about the latest updates in GST, diligently preparing a comprehensive reply, maintaining proper documentation, and cooperating with the GST department. By following these steps, you can ensure a seamless scrutiny process without encountering any major complications.

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