Powers & Procedures for GST return mismatch if pointed out by Dept

1. Return: Section 2(97) CGST Act 2017 unless the context otherwise requires, the term “return” means any return prescribed or otherwise required to be furnished by or under this Act or the rules made thereunder.

2. Rule 61 of CGST ACT Form and manner of submission of monthly returns Rule 61(5): Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the] (Substituted for “specify that” vide Notification No. 22/2017 - Central Tax dt 17.08.2017; w.e.f 01.07.2017) return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner. Thus, Form GSTR-3B is also Prescribed u/s 2(97) of CGST Act.

3. Section 61 (1) of CGST Act 17: Dept may Scrutinize the returns The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.

4. Rule 99 (1) of CGST Act 17: Calling information by Department  He shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy.

5. Section 61 of CGST Act 17: If reply found acceptable by Dept In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

6. Section 61 (3) of CGST Act 17: In case of reply not acceptable by Dept or non furnishing of information sought by Dept In case no satisfactory explanation is furnished 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 take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 (Audit by Tax Authority) or -section 66 (Special Audit) or section 67 (Power of Inspection), or proceed to determine the tax and other dues under section 73 or section 74.