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CA Final · Indirect Tax Laws · Returns

Meenakshi Enterprises received an ASMT-10 notice, accepted the discrepancy, and paid the tax and interest. It informed the officer in FORM GST ASMT-11. The officer found the explanation acceptable. What is the next step under the Rules?

The proper officer informs the registered person in FORM GST ASMT-12 that the explanation is acceptable. Once accepted, no further action is taken. Demand proceedings arise only where no satisfactory explanation is furnished or the accepted discrepancy is not corrected in the return.

  1. AThe officer issues FORM GST ASMT-10 again for a fresh explanation
  2. BThe officer informs the person accordingly in FORM GST ASMT-12Correct
  3. CThe officer issues FORM GSTR-3A to the person
  4. DThe officer must immediately initiate proceedings under section 73 or 74

Explanation

Under rule 99(3), where the explanation or information submitted under sub-rule (2) is acceptable, the officer informs the person in FORM GST ASMT-12. Section 61(2) also says no further action is taken when the explanation is acceptable. Initiating section 73 or 74 proceedings arises only if no satisfactory explanation is given or corrective measures are not taken.

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