Form GST ASMT-10 is a notice issued under section 61 of the Central Goods and Service Tax Act, 2017 (CGST Act) read with Rule 99 of the Central Goods and Service Tax Rules, 2017 (CGST Rules). This notice is used by the proper officer to inform a taxpayer about discrepancies found in their GST returns and seek an explanation for the same.
The notice in Form GST ASMT-10 can be issued for various discrepancies, such as:
- Differences between tax liability reported in GSTR 1 & GSTR 3B,
- Tax liability as per E-Way Bills and GSTR 3B, and
- Input tax credit claimed between GSTR 3B and GSTR 2A,
Section 61 of CGST Act
(1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.
Rule 99 of CGST Rules: Scrutiny of returns.-
(1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10 , informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy.
(2) The registered person may accept the discrepancy mentioned in the notice issued under sub-rule (1), and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer.
(3) Where the explanation furnished by the registered person or the information submitted under sub-rule (2) is found to be acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12.
Brief:
The taxpayer, upon receiving the notice in Form GST ASMT-10, has two scenarios to consider:
- If the taxpayer does not agree with the discrepancies mentioned in the notice, they need to file a reply in Form GST ASMT-11, explaining the reasons for the discrepancies and providing supporting documents if required.
- If the taxpayer agrees with the discrepancies mentioned in the notice, they must pay the tax along with interest and penalty (if any) and inform the proper officer in Form GST ASMT-11.
To file a reply against ASMT-10, the taxpayer needs to prepare the reply in Form GST ASMT-11 (offline form) and then file it through the GST portal using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code).
The taxpayer should file the reply within 30 days from the date of receipt of the notice, as per Section 61 of the CGST Act. However, the GST Form ASMT-10 itself mentions the date by which the reply should be filed.
The notice in Form GST ASMT-10 can be issued for various discrepancies, such as differences between tax liability reported in GSTR 1 and GSTR 3B, tax liability as per E-Way Bills and GSTR 3B, and input tax credit claimed between GSTR 3B and GSTR 2A, among others.
Once the taxpayer files the reply in ASMT-11, the proper officer will review the explanation. If found satisfactory, the proper officer will issue an Order in ASMT-12, accepting the reasons provided by the taxpayer. If the reply is not satisfactory or the taxpayer fails to comply with the accepted discrepancies, the proper officer may initiate further actions as per the provisions of the CGST Act.
Overall, Form GST ASMT-10 and ASMT-11 play a crucial role in resolving discrepancies in GST returns and ensuring compliance with GST regulations.
Download Format of ASMT 10
Reply to notice of ASMT-10 is to make online in Form GST ASMT-11
To make a proper reply you have to collect all documentary proofs with you
Below is form ASMT-11 format, this is available online whenever you received notice ASMT-10, you can view this on GST portal after login: Navigate to Services > User Services > View Additional Notices/Orders > View > REPLIES option.
FAQs > Filing reply in Form GST ASMT-11 to the notice issued against Scrutiny of Returns
1. When a Tax Official will conduct Scrutiny of Returns?
In case, any discrepancy is found in return furnished by registered person on the basis of risk parameters or suo-moto on his own motion, then Tax Official can issue a notice informing that person of such discrepancies noticed and seek clarification from that person.
Registered person may either accept such discrepancies and pay tax, interest and penalty amount arising from such discrepancies and inform the same to the Tax Official or furnish an explanation for the identified discrepancy.
Where the explanation furnished by the registered person is found to be acceptable, the Tax Official may issue order of acceptance of reply against notice issued.
If explanation furnished by the registered person is found not acceptable, then Tax Official may proceed to determine the tax u/s 73/74 or recommend to initiate action under Audit/ Special Audit/ Enforcement u/s 65/66/67.
2. Does a taxpayer get any intimation about the notice or order issued to him?
Taxpayer will get intimation of issue of all notices and orders issued to him/her though SMS and e-mail.
3. By when can a taxpayer reply to notice issued to them?
The taxpayer need to reply within 30 days from the date of service of notice issued u/s 61 to furnish explanation or request for extension.
4. From where can I view notice issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > NOTICES option.
5. From where can I reply to notice issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > REPLIES option.
6. Can I ask for personal hearing while replying to notice issued for Scrutiny of Returns?
No, you cannot ask for personal hearing while replying to notice issued for Scrutiny of Returns.
7. What is the relevance of amount admitted and paid while replying to notice issued for Scrutiny of Returns?
The notice issued by the tax official may indicate some discrepancies which were observed during scrutiny of return by him. If due to any of the indicated discrepancy, taxpayer is liable to pay differential tax, and he agrees to the discrepancy and pays the tax due on this count, he may mention the said agreed amount paid and enter the payment particulars in its reply to notice in Form GST ASMT 11.
If he is yet to pay the admitted amount, he can pay it either by using Form DRC-03 or he may furnish the outward supply invoice/debit note/amended invoice/amended debit note, in Form GSTR-1 or by paying tax or do cenvat reversal, as the case may be, at the time of filing Form GSTR-3B, in reply to the notice.
8. From where can I view order issued for Scrutiny of Returns?
Navigate to Services > User Services > View Additional Notices/Orders > View > ORDERS option.
9. What are the various statuses for Scrutiny of Returns?
Various statuses for Scrutiny of Returns updated automatically by GST Portal are:
1. Pending for Action by tax officer: Status of ARN of return under work item of A/A for scrutiny
2. Closed: On removing the item from ‘List of Return under Scrutiny’
3. Pending for reply by taxpayer: Status of ARN/ Case id and RFN upon issue of notice
4. Reply furnished; Pending for order by tax officer: Status of ARN/ Case id and RFN upon submission of reply
5. Reply not furnished, pending for order: Status of ARN/ Case id and RFN, if person does not attend PH/ furnish explanation on date specified in SCN or Extended date
6. Order for dropping proceedings issued: Status of ARN/ Case id and RFN upon dropping the proceedings
7. Recommended for action u/s 73: Status of ARN/ Case id upon initiating proceedings u/s 73 for Determination of Tax
8. Recommended for action u/s 74: Status of ARN/ Case id upon initiating proceedings u/s 74 for Determination of Tax
9. Recommended for Audit u/s 65: Status of ARN/ Case id upon recommended the case to Audit
10. Recommended for Special Audit u/s 66: Status of ARN/ Case id upon recommended the case to Special Audit
11. Recommended for Survey/ Inspection u/s 67: Status of ARN/ Case id upon Recommended the case under Enforcement
12. Pending for order by tax officer: Status of ARN/ Case id and RFN, in case, no reply submitted against notice within time specified or extended time
I have received notice U/s 61 of CGST/OGST Act read with rule 99 (1), on scrutiny of the
information available in the GST PORTAL, it is found that, you have claimed
ITC of Rs. 1,30,126/- in your GSTR 3B return during the tax period
APR’21-MAR’22 where as in your GSTR 2A/2B record you are eligible for
ITC of Rs. 33,576/. But the ITC reflect on the period of April 22 to March 23.
What is the reply in this matter. Please suggest me.