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CA Final · Indirect Tax Laws · Returns

Mehta Components Ltd received an ASMT-10 notice about a discrepancy in its return. It accepted the discrepancy, paid the tax and interest, and filed its explanation in FORM GST ASMT-11. The proper officer found the explanation acceptable. What does the officer do next under the Rules?

The officer informs the registered person in FORM GST ASMT-12 that the explanation is acceptable. Under section 61(2), no further action is then taken. Audit or inspection proceedings arise only where the explanation is unsatisfactory or the accepted discrepancy is not corrected in the return.

  1. AIssues FORM GST ASMT-12 informing the person that the explanation is acceptableCorrect
  2. BIssues FORM GST REG-05 rejecting the explanation
  3. CIssues FORM GSTR-3A to the person for non-filing
  4. DInitiates proceedings under section 65 or 66 straight away

Explanation

Where the explanation or information submitted under the acceptance route is found acceptable, the proper officer informs the person in FORM GST ASMT-12. Under section 61(2), no further action is taken once the explanation is accepted. Action under sections 65 or 66 arises only if no satisfactory explanation is given or corrective measures are not taken.

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