SUB GST p2.2

Section 61 Scrutiny of GST Return

23 May 2020

According to Section 61 of the CGST Act, 2007 Dealt with the provisions relating to scrutiny of returns Section 61 is divided into three subsections:-

As per section 61 Sub-Section (1): The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform registered person regarding the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto. Rule 99 prescribes the manner prescribed u/s 61(1). 

As per section 61 Sub-Section (2): If in case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

As per section 61 Sub-Section (3): In case no satisfactory explanation is furnished within 30 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, If he 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 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.

Section 61(3) considers two situations:

a) If in case no satisfactory explanation is furnished within a period of 30 days of being informed by the proper officer or such further period as may be permitted by him

b) 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

Rule 99(2) which states that:-

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

Payment through DRC-03

Section 61(3) states that the registered person should take the corrective measure in his return for the month in which the discrepancy is accepted. However, DRC-03 is not a return prescribed under the Act it’s a form prescribed under ‘Demand and Recovery’, and although the discrepancy amount has been deposited through DRC-03.

of a return and it reads as under:

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