CBIC vide instruction no. 02/2022 – GST dated 22nd March, 2022 has issued detailed guidelines for scrutiny of returns for F.Y. 2017-18 & 2018-19 to ensure uniformity in selection/ identification of returns for scrutiny, methodology of scrutiny of such returns and other related procedures.
Such scrutiny of returns would be in time bound manner. An indicative list of parameters for scrutiny of returns have been given in the guidelines as below:
- Difference in Tax Liability between GSTR-1 and GSTR-3B.
- RCM liability to be compared with RCM ITC availed in GSTR-3B.
- RCM liability appearing in GSTR-2A and liability declared in GSTR-3B.
- Tax liability paid in cash in GSTR-3B should not be less than liability declared on RCM in GSTR3B.
- ITC availed on ISD to be compared with ISD ITC appearing in Table 7 of GSTR-2A.
- All other ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A.
- Outward tax liability declared in GSTR-3B should not be less than the taxable amount on which TDS/TCS applicable as appearing in GSTR-2A.
- Comparison of liability declared in GSTR-3B with E-way Bill Report.
- ITC availed in respect of vendors where registration cancelled retrospectively.
- ITC availed in GSTR-3B where vendors have not filed GSTR-3B.
- GSTR-1 filed after September due date – no ITC to be availed in respect of such transactions.
- Import of goods ITC availed in GSTR-3B to be compared with ITC appearing in GSTR-2A on import of goods.
- ITC reversal under Rule 42/43 vis-à-vis exempted supply shown in return, payment of interest and late fees, etc.