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CA Final · Indirect Tax Laws · Returns

During scrutiny, the proper officer informed Ritu Enterprises of discrepancies in its return. Ritu accepted the discrepancies but did not make the corrective measure in its return for the month in which the discrepancy was accepted. Under section 61 of the CGST Act, 2017, what may the proper officer do?

The officer may initiate appropriate action, including under sections 65, 66 or 67, or proceed to determine tax and other dues under section 73, 74 or 74A. This follows because the person accepted the discrepancies but failed to correct the return for the month of acceptance.

  1. ATake no further action since the discrepancy was accepted
  2. BInitiate appropriate action including under section 65, 66 or 67, or determine tax and dues under section 73, 74 or 74ACorrect
  3. COnly issue a fresh notice in FORM GSTR-3A
  4. DOnly cancel the registration immediately without any other process

Explanation

Section 61(3) lets the officer act if no satisfactory explanation is given within thirty days or if, after accepting the discrepancies, the person fails to take corrective measure in the return for the month of acceptance. The action includes sections 65, 66, 67 or determination under 73, 74 or 74A. No further action applies only when the explanation is found acceptable.

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