The Commercial Taxes Department, Rajasthan, has issued revised guidelines for the scrutiny of GST returns under Section 61 of the RGST Act, 2017, replacing the earlier guidelines issued on 7 January 2022.
The updated procedure is intended to bring greater uniformity and consistency to return scrutiny proceedings and subsequent actions under Sections 73, 74, and 74A of the RGST Act, 2017.
Under the issued guidelines, the Business Intelligence Unit (BIU) will analyse data on the GSTN portal to select registered taxpayers for scrutiny.
Scrutiny parameters include key discrepancies such as excess outward tax reported in GSTR-1 versus GSTR-3B/GSTR-9, turnover mismatches with GSTR-7 and GSTR-8, and excess liability reflected in e-way bills.
Furthermore, the BIU will flag excess Input Tax Credit (ITC) claimed in GSTR-3B/GSTR-9, ITC claimed from non-filing or cancelled suppliers, and claims submitted beyond the statutory deadline specified under Section 16(4) of the RGST Act.
The department had obligated the scrutiny for matters chosen on the grounds of excess outward tax in GSTR-1 compared to GSTR-9 or GSTR-3B, excess outward liability in e-way bills compared to GSTR-3B, and ITC claimed from suppliers whose registration certificates have been cancelled. For the preparation of the scrutiny list, there will be other parameters.
Under the revised guidelines, the Special Commissioner (BIU) will prepare a list of taxpayers for scrutiny, subject to the approval of the Chief Commissioner, State Tax.
The approved cases will be allocated through the Integrated Tax Management System (ITMS) either for faceless scrutiny or to the jurisdictional Proper Officers. The list will also be cross-verified with ongoing audit cases to avoid duplication of proceedings.
Under Section 61(1) of the RGST Act read with Rule 99(1) of the RGST Rules, the proper officer will issue Form GST ASMT-10, which delivers all corrections or mistakes seen during scrutiny.
The registered taxpayer can explain ASMT-11 within 30 days or such further period as allowed by the proper officer. If the explanation is admitted or the taxpayer considers the mistake and pays the tax, interest, and other applicable amounts through DRC-03, the proceedings will be closed, and the taxpayer will be notified via ASMT-12.
However, where no satisfactory explanation is furnished or corrective actions are not chosen despite acceptance of the mistake, the case will be transferred to the proper officer. The proper officer will thereafter begin proceedings for determination of tax and other dues under Sections 73, 74 or 74A of the RGST Act.
Afterwards, the department asked that where the detected tax is not paid, short paid, or ITC incorrectly claimed or used surpasses Rs 5 crore, adjudication proceedings shall be started only after prior approval of the Additional Commissioner (Administration) of State Tax.
Officers across jurisdictions will furnish guidelines for scrutiny via the newly assigned scrutiny officer role, while keeping the current procedure for issuance of ASMT-10, filing of ASMT-11 and acceptance of replies through ASMT-12.
Read the circular by the Rajasthan Government
