Kerala SGST issues guidelines on 10-11-2021 regarding procedure to be followed in scrutiny of returns. The Circular states that in order to ensure uniformity in the scrutiny of returns across the field formations and also to prioritise and dispose the cases initiated at the assessment vertical the instructions/guidelines mentioned therein shall be adhered to.
The Circular outlines 11 risk parameters for scrutiny of returns that have been identified as defect and which cannot be determined without detailed enquiry or investigation. Further, it highlights the procedure to be followed in cases where discrepancy notice in Form GST ASMT-10 is not issued yet and thereafter, the procedure to be followed after issuance of discrepancy notice in Form GST ASMT-10.
On ITC related risk parameters, the Circular advises that for 2017-18 if the ITC was availed on or before 25th October, 2018 on the strength of invoices/debit notes and ITC availed through the return in Form GSTR 3B is in excess of invoices/debit notes particulars reflected in Form GSTR 2A, then notice for non-compliance of Section 16(2)(c) of the KSGST Act, 2017 shall be issued. For FY 2018-19, where the ITC was availed on or before 20th October 2019 on the strength of invoices/debit notes and ITC availed through the return in Form GSTR 3B is in excess of invoices/debit notes particulars reflected in Form GSTR 2A, the Circular provides for issuance of notice for non-compliance of Section 16(2)(c).
The Circular also clarifies on outward supply related risk parameters covering GSTR-1 vs GSTR-3B mismatch, GSTR-3B vs E-Way Bill and cases where turnover is less than Tax Deducted at Source (TDS) u/s 51 and Tax Collected at Source (TCS) u/s 52 of the KSGST Act, 2017.
