CBIC Issues SOP For Scrutiny Of Returns For FY 2017-18 And 2018-19

Section 61 of the Central Goods and Services Tax Act,2017 read with rule 99 of Central Goods and Services Tax Rules, 2017 provides for scrutiny of returns and related particulars furnished by the registered person.

As a temporary solution, the CBIC has released a SOP to maintain uniformity in the selection/identification of returns for scrutiny, the technique of return scrutiny, and other associated procedures until a Scrutiny Module for online return scrutiny is made accessible on the CBIC-GST application.

Returns for inspection are to be chosen based on particular risk indicators, according to the SOP. The Directorate General of Analytics and Risk Management (DGARM) has been tasked with selecting the GSTINs registered with the Central Tax Authorities, whose returns will be scrutinised, and communicating the results to the field formations via the DDM portal (to the nodal officer of the Commissionerate concerned) for further action.

DGARM would also give certain important data (along with possible revenue implications) relative to the returns to be scrutinised through the DDM portal for the convenience of field officers.

It is worth noting that the data provided by the DGARM is generated at a particular point of time which may undergo change at the time of scrutiny of returns by the proper officer due to subsequent compliances carried out by the taxpayer or by the suppliers of the taxpayer. The proper officer shall, therefore, rely upon the latest available data.

In relation to sub-sections(1) and(3) of section 61 of the CGST Act, the "Superintendent of Central Tax" has been designated as the proper officer. As a result, a taxpayer's returns may be scrutinised by the Superintendent of Central Tax in charge of the taxpayer's jurisdictional range.

The proper official, with the approval of the divisional Assistant / Deputy Commissioner, will finalise a scrutiny schedule once the list of GSTINs whose returns have been selected for scrutiny is communicated to the field formations.

Such scrutiny schedule will specify month-wise schedule for scrutiny in respect of all the GSTINs selected for scrutiny. The GSTINs, which appear to be riskier based on the potential revenue implications given by DGARM, may be prioritised during the preparation of the scrutiny schedule. The concerned Zone must report such inspection schedules for all ranges within the CGST Zone to the Directorate General of Goods and Services Tax (DGGST).

A minimum of three GSTINs must be scrutinised by the proper officer each month. Scrutiny of one GSTIN's returns entails examination of all returns for the financial year for which the specified GSTIN has been identified for examination.

Returns must be scrutinised in a timely way so that appropriate revenue-protection measures can be implemented quickly.

The SOP instructed officers to take the necessary measures for issuing notices/orders well ahead of the time constraints stipulated in section 73 or section 74 of the CGST Act, as the case may be, in respect of a return identified for scrutiny for a financial year when performing scrutiny.

Instruction No. 02/2022-GST

Dated: 22.03.2022

Click Here To Read/Download SOP