Chhattisgarh GST Dept issued Instructions regarding ASMT 10 and other GST related issues

By: Admin
May 25, 2024
Categories: State GST Notification and Circular
4 Min Read

The Chhattisgarh GST Department issued Instructions dated April 16, 2024 regarding ASMT 10 and other GST related issues

In various representations received by this office and in the meetings held with GST stakeholders, the following facts have been brought to light regarding scrutiny of returns under GST: –

  1. Information letters (ASMT-10) are being issued by the appropriate authorities in almost all the cases of scrutiny.
  2. Officials are issuing information sheets without scrutinizing the statements.
  3. Too much and inconsistent information is being sought in the information letter issued (ASMT-10).
  4. Demand letter (DRC-07) is being issued without considering the facts/information given in the reply (ASMT-11) submitted by the taxpayer.
  5. More than one newsletter is being issued for the same period and on the same topic/issue.

Before considering the points shown above, review the provisions regarding scrutiny of returns in Section 61 of Chhattisgarh Goods and Services Tax Act, 2017 (Act) and Rule 99 of Chhattisgarh Goods and Services Tax Rules, 2017 (Rules). The provisions of section 61 are as follows:-

  1. (1) The appropriate officer shall scrutinize the return furnished by the registered person to verify the correctness of the return and the relevant particulars and shall correct the discrepancies, if any, noticed in such manner, Give information in such manner as may be prescribed and obtain his clarification thereon.

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) If a satisfactory explanation is not furnished by the Appropriate Officer within a period of thirty days of being informed or within such further period as may be allowed by him or where the registered person, after accepting the discrepancies, fails to take corrective measures in the return in which the discrepancy was admitted, the proper officer may initiate appropriate action, including proceedings under section 65 or section 66 or section 67 or under section 73 or section 74 And will proceed to determine other researches.

Rule 99 Scrutiny of returns, –

(1) Where any return furnished by a registered person is selected for scrutiny under the provisions of sub-section (1) of section 61, the proper officer shall scrutinize the same with reference to the information available to him and in case of any discrepancy, he shall issue a notice in FORM GST ASMT-10 to the assessee informing him about such discrepancy and seek explanation from him within 30 days from the date of service of the notice and calculate the amount of tax, interest and any other amount payable in respect of such discrepancy .

(2) The registered person may accept the discrepancy mentioned in the notice issued under sub-rule (1) and shall pay the tax, interest or any other amount arising from such discrepancy and inform the same or report the discrepancy in FORM GST ASMT-11 to the proper officer. will give explanation for

(3) Where the information furnished under sub-rule (2) or the explanation furnished by the registered person is found acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12.

It is clear from the reading of the above provisions that while scrutinizing the returns, the officers should examine the reports received from various sources like GST BO Portal, GST Prime, etc. and the information available in GSTR-9C (Reconciliation Statement). Notice ASMT-10 is to be issued only when discrepancy is found and not in all cases. Instructions to this effect have also been given in paragraph 6.3 of the instruction number 81/2022 dated November 30, 2022 issued by this office.

Therefore, officers are expected to issue ASMT-10 only in those cases in which they have sufficient grounds for discrepancies and revenue is involved and should also avoid asking unnecessary information or documents from the taxpayer in ASMT-10 and ask only such documents or information. Go, which is relevant to the case. Before issuing the order in the sequence of scrutiny of returns, the response submitted by the taxpayer (ASMT-11) should be taken into consideration and the fact must be mentioned in the order on which grounds the ASMT-11 is being rejected by him. That is, there should be order speaking. Issuing unilateral orders is expected to be avoided as much as possible.

Issue of more than one notice on the same subject and for the same period the cases should be brought to the notice of the Joint Commissioner of State Tax and after legal notice apart from this, all other notices should be canceled and informed to the concerned taxpayer.

Special Commissioners/Joint Commissioners of State Tax in charge of Divisions are required to regularly examine the orders passed by their subordinate officers and ensure compliance with the provisions laid down in the Act and Rules.

If there is any difficulty in following these instructions or any legal error is noticed, this office should be informed. Besides, feedback on following the instructions should also be taken in the meetings organized in coordination with EODB. These instructions cannot be used in interpreting the Act and rules under any circumstances.

The Instructions can be accessed at: https://a2z-bucket.s3.amazonaws.com/