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CA Final · Indirect Tax Laws · Returns

Under section 61, the proper officer informed Dhanush Traders of a discrepancy in its return. Dhanush accepted the discrepancy but did not correct it in the return for the month in which it was accepted, and gave no satisfactory explanation within thirty days. Which is the correct position?

The proper officer may initiate appropriate action, including under sections 65, 66 or 67, or proceed to determine tax and other dues under section 73 or 74. This follows because no satisfactory explanation was given within thirty days and the accepted discrepancy was not corrected in the return.

  1. AThe proper officer may initiate appropriate action including under section 65, 66 or 67, or determine tax and dues under section 73 or 74Correct
  2. BThe officer must take no action, as acceptance ends the matter
  3. CThe officer may act only after a further notice in FORM GSTR-3A
  4. DThe officer can only cancel the registration, with no determination of tax

Explanation

Section 61(3) allows appropriate action, including under sections 65, 66 or 67, or determination of tax and dues under section 73 or 74 (and 74A), where no satisfactory explanation is given within thirty days or the person accepts the discrepancy but fails to take corrective measure in the return for the month of acceptance. Acceptance alone does not close the matter.

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