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CS Executive · Tax Laws and Practice · Procedural Compliance under GST

A registered person accepts the discrepancies pointed out by the proper officer during scrutiny of a return but does not correct them in the return for the month in which the discrepancy was accepted. What is the consequence under section 61 of the CGST Act?

The proper officer may initiate appropriate action, including audit, special audit, inspection or determination of tax and other dues under the demand provisions. Accepting discrepancies without correcting them in that month's return does not end the matter and nothing is automatically condoned.

  1. AThe proper officer may initiate appropriate action, including determining tax and other duesCorrect
  2. BThe discrepancy is automatically condoned after thirty days
  3. CThe registered person's registration is cancelled automatically
  4. DOnly a warning may be issued and no further action is allowed

Explanation

Section 61(3) states that where the person accepts the discrepancies but fails to take corrective measures in the return for the month of acceptance, the proper officer may initiate appropriate action, including under sections 65, 66, 67, 73 or 74. Automatic condonation or cancellation is not provided.

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