Skip to content

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Overview of Goods and Services Tax

Mehta Traders, a registered person, authorises an approved GST practitioner, Mr Iyer, to file its monthly return. Mr Iyer enters outward supplies of Rs 8,00,000 instead of the correct Rs 10,00,000 because of a data entry slip and the return is filed. Which conclusion follows under section 48 of the CGST Act, 2017?

Mehta Traders remains responsible for the understated outward supplies. Although Mr Iyer was validly authorised to file the return, section 48(3) of the CGST Act provides that responsibility for correctness of particulars continues to rest with the registered person on whose behalf the return is furnished.

  1. AMr Iyer alone is answerable for the Rs 2,00,000 understatement, as he filed the return
  2. BNeither is answerable, as the authorisation was valid
  3. COnly the department is answerable, as it accepted the return
  4. DMehta Traders remains responsible for the correctness of the particulars, despite Mr Iyer filing the returnCorrect

Explanation

Under section 48(3), responsibility for correctness of particulars in returns filed by the practitioner continues to rest with the registered person, here Mehta Traders. A valid authorisation under section 48(2) only allows filing, not transfer of responsibility, so the option blaming Mr Iyer alone is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Overview of Goods and Services Tax shows your real accuracy, how long you take and where you lose marks.

Practise Overview of Goods and Services TaxFree diagnostic mock

More Overview of Goods and Services Tax questions