SOP for Scrutiny of Returns for 2019-20 [Instruction 2/2023 dated 26-05-2023]

1. SOP for scrutiny of returns for 2017-18 and 2018-19 was an interim measure till the development of an online scrutiny module made available on ACES-GST application.
2. DG System has developed an online module for scrutiny of returns.
3. Selection of returns for scrutiny shall be done by DGRAM who will select GSTIN registered with Central Tax authorities based on identified risk parameters.
4. GSTINs selected for scrutiny for 2019-20 have been made available on the dashboard of the proper officer of Central Tax on ACES-GST application. Also following information has been made available for convenience of proper officer:

i. Details of risk parameters involving risk/discrepancies in respect of GSTIN

ii. Amount of tax/discrepancy involved for each risk parameter

5. Risk Parameters: All risk parameters taken into consideration shall be made available on the dashboard. [Indicative List of Parameters has been provided in Annexure B of Instruction 2/2022 dated 22-03-2022]
6. Additional risk parameters may also be considered by the proper officer in addition to parameters indicated in Dashboard.
7. Proper officer shall finalize a month wise scrutiny schedule with approval of divisional assistant/deputy commissioner, prioritizing riskier GSTINs having higher risk implications.
8. The Principal Commissioner will monitor that schedule identified in Scrutiny Module is adhered by officers under his jurisdiction.
9. Minimum 4 GSTINs to be scrutinized every month involving scrutiny of all the returns pertaining to FY. [Para 4.2]
10. For scrutiny of returns following data to be checked:

i. Various returns and statements furnished by registered person
ii. Data made available through
a. DGRAM
b. ADVAIT
c. GSTN
d. E way Bill Portal [Para 5.1]

11. No documents/records to be sought from the taxpayer for the purpose of scrutiny and a proper officer is expected to rely upon only information available on records. [Para 5.3]
12. Minimal Interface between taxpayer and officer is expected for scrutiny. [Para 5.3]
13. Payments made through DRC-03 also to be considered while communicating discrepancy [Para 5.4]
14. ASMT-10 to be communicated on portal only without making any manual communication of ASMT-10 [Para 5.4]
15. Quantification of tax, Interest and other amount payable to be done in ASMT-10, as far as possible [Para 5.4]
16. Specific discrepancy to be communicated and not vague and general {para 5.4]
17. Worksheets and supporting documents of ASMT-10 to be uploaded on portal {Para 5.4]
18. Timelines:
    i. Reply of Notice by registered person : Within 30 days or further period permitted by proper officer.
    ii. Satisfactory Disposal of Notice ASMR-12’Within 30 days from receipt of reply.
    iii. Where no reply is furnished, appropriate action u/s 73/74/65/66/67 to be taken in 15 days from expiry of 30 days provided for reply.
    iv. Where reply submitted is not satisfactory, appropriate action u/s 73/74/65/66/67 to be taken within 30 days from receipt of reply.
19. MIS Reports : Monthly Scrutiny progress reports (Summary information on scrutiny for a month) and Scrutiny register providing GSTIN wise details of action taken in respect of scrutiny of returns of allotted GSTINs have been made available on Scrutiny dashboard and requirement of compiling and sending Monthly Scrutiny progress report by CGST zones to DGGST is hereby dispensed.