What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Review of GST scrutiny notices and discrepancies.
- Detailed reconciliation of GST returns with books and supporting records.
- Identification of the actual cause of reported differences.
- Preparation of structured and evidence-based responses.
- Assistance with supporting documentation and reconciliations.
- Representation and communication support before GST authorities, where applicable.
- Reduced risk of avoidable tax demands arising from unresolved discrepancies.
How the engagement works
GST scrutiny of returns is governed by the applicable provisions of the Central Goods and Services Tax Act, 2017, corresponding State or Union Territory GST laws, GST Rules, and related procedures and notifications. The proper officer may examine returns and related particulars to verify their correctness and may seek explanations or information regarding discrepancies. Depending on the findings and circumstances, further proceedings may arise under the applicable assessment or demand provisions. The exact procedure and response requirements depend on the notice and facts of the case.
Scenario 1: A taxpayer receives a GST scrutiny notice identifying differences between reported turnover and other available information.
Scenario 2: GST authorities identify differences between GSTR-1 and GSTR-3B and seek clarification from the taxpayer.
Scenario 3: A business receives a query regarding input tax credit claimed in its GST returns and needs to provide supporting reconciliation and documents.
Scenario 4: A taxpayer has discrepancies between GST returns, e-invoices, e-way bills, books of account, or other records and requires professional assistance.
Scenario 5: A business wants professional representation and support while responding to GST scrutiny communications.
GST Scrutiny Notice Review
We examine the scrutiny notice, discrepancy details, relevant tax periods, and information requested by the GST authorities to determine the appropriate response strategy.
Books & Return Reconciliation
We reconcile GST returns with books of account, invoices, e-invoices, e-way bills, input tax credit records, and other relevant information to identify the source of discrepancies.
Discrepancy Analysis
We analyze differences in turnover, tax liability, input tax credit, tax payments, invoice reporting, and other matters highlighted during scrutiny.
General questions
01What is GST scrutiny?
GST scrutiny is the examination of a taxpayer’s GST returns and related information by the proper officer to verify the correctness of reported details and identify discrepancies or potential tax liabilities.
02Why might I receive a GST scrutiny notice?
A scrutiny notice may arise due to differences between GST returns, books of account, e-invoices, e-way bills, input tax credit records, tax payments, or other information available with the GST authorities.
03What should I do after receiving a GST scrutiny notice?
The notice should be reviewed carefully, the relevant records should be reconciled, and an appropriate response with supporting documents should be submitted within the prescribed timeline.
04Can GST scrutiny lead to a tax demand?
If discrepancies remain unexplained or indicate tax liability, further proceedings may be initiated under the applicable GST provisions. The consequences depend on the facts, nature of the discrepancy, and applicable law.
05What documents are required for GST scrutiny?
Documents may include GST returns, books of account, sales and purchase registers, invoices, credit and debit notes, e-invoices, e-way bills, input tax credit records, payment challans, reconciliations, and other records relevant to the notice.
06Can you represent us before the GST authorities?
Where applicable and within the scope of the engagement, we can assist with preparing submissions, responding to queries, and providing professional representation or support before the GST authorities.
07Can GST scrutiny be resolved without a demand?
Where the discrepancy is due to an explainable difference, reporting issue, or other matter supported by appropriate evidence, a clear reconciliation and explanation may help resolve the scrutiny without an unwarranted tax demand. The outcome depends on the facts and the authorities’ findings.
