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CA Final · Indirect Tax Laws · Returns

Anand Pharma accepted a discrepancy raised by the proper officer on scrutiny of its return, but did not take corrective measures in its return for the month in which it accepted the discrepancy. Which statement is correct under section 61(3) of the CGST Act?

The proper officer may initiate appropriate action, including under section 65, 66 or 67, or determine tax and dues under section 73, 74 or 74A. Failure to correct the return in the month of accepting the discrepancy defeats closure, which applies only where the explanation is acceptable.

  1. AThe proper officer may proceed to determine tax and other dues under section 73 or section 74 or section 74A, or initiate action under section 65, 66 or 67Correct
  2. BThe proper officer can only issue a reminder in FORM GSTR-3A
  3. CThe proper officer must treat the matter as closed because the discrepancy was accepted
  4. DThe proper officer may act only under section 73 and not under any other section

Explanation

Section 61(3) allows appropriate action where the person, after accepting the discrepancies, fails to take corrective measures in the return for the month of acceptance. The action includes sections 65, 66 or 67, or determination of tax under section 73, 74 or 74A (inserted w.e.f. 1-11-2024). Closure under 61(2) applies only to acceptable explanations, and GSTR-3A is for non-filers.

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