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CA Final · Indirect Tax Laws · Returns

Mehta Components Ltd's return for a month was selected for scrutiny. The proper officer issued FORM GST ASMT-10 on 5 June, served the same day, pointing out a mismatch in tax liability. Which statement is correct under the CGST Rules, 2017?

The registered person gets a period not exceeding thirty days from service of the ASMT-10 notice, or any further period the officer permits, to explain the discrepancy. The seven working day limit belongs to revocation proceedings, and the reply is made in ASMT-11, not ASMT-12.

  1. AThe registered person must reply within seven working days of service
  2. BThe registered person may be given time not exceeding thirty days from service, or such further period as the officer permits, to explainCorrect
  3. CThe registered person has no right to accept the discrepancy and pay; the officer must pass an order under section 73
  4. DThe registered person must reply in FORM GST ASMT-12

Explanation

Rule 99(1) requires the notice to seek an explanation within a time not exceeding thirty days from service, or such further period as the officer allows. Seven working days is the REG-24 reply period for revocation, so it is wrong here. ASMT-12 is the officer's acceptance intimation, and the person replies in ASMT-11.

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