CA Final · Indirect Tax Laws · Returns
Kaveri Textiles Ltd's return for March was selected for scrutiny. The proper officer noticed a mismatch between the turnover declared and the information available with him, and issued a notice in FORM GST ASMT-10 on 5 June. Which statement is correct as per the CGST Rules?
The ASMT-10 notice must ask for an explanation within a time not exceeding thirty days from the date of service, or any further period the officer permits. The taxpayer may either accept and pay or explain in ASMT-11. Action under section 73 or 74 comes only later.
- AThe notice must seek an explanation within a time not exceeding thirty days from the date of service, or such further period as the officer permitsCorrect
- BThe notice must seek an explanation within fifteen days, and no extension is possible
- CThe registered person can respond only by paying the tax; no explanation may be furnished
- DThe officer must straight away initiate proceedings under section 73 without waiting for any reply
Explanation
Rule on scrutiny of returns says the notice in ASMT-10 seeks an explanation within a time not exceeding thirty days from service or such further period as the officer permits. The person may accept the discrepancy and pay, or furnish an explanation in ASMT-11. Determination proceedings come only if no satisfactory explanation is furnished.
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