Automated Return Scrutiny Module for GST returns

May 15, 2023

The Central Board of Indirect Taxes and Customs (CBIC) has recently introduced an Automated Return Scrutiny Module to enhance tax compliance and simplify the scrutiny process of Goods and Services Tax (GST) returns.

Automated Scrutiny of GST Returns

The primary objective of CBIC’s Automated Return Scrutiny Module is to automate the scrutiny process of GST returns. The module leverages data analytics to identify discrepancies and risks associated with returns. Tax officers are provided with a dashboard that displays these discrepancies based on the risks identified by the system.

Streamlined Communication through GSTN Common Portal

To address the identified discrepancies, tax officers and taxpayers can communicate through the GSTN Common Portal. Tax officers can use FORM ASMT-10 to notify taxpayers about the discrepancies, while taxpayers can submit their responses using FORM ASMT-11. This streamlined communication process ensures efficient and transparent interaction between the two parties.

Non-Intrusive Compliance Verification

The Automated Return Scrutiny Module adopts a non-intrusive compliance verification process. This approach allows tax officers to focus their efforts on taxpayers who require closer examination, reducing unnecessary scrutiny for compliant taxpayers.

Actions Based on Discrepancies

Upon noticing discrepancies in GST returns, tax officers have the authority to take appropriate actions. These actions may involve the issuance of an acceptance order (FORM ASMT-12), the issuance of a notice to show cause, or the commencement of an audit or investigation. Such measures ensure that non-compliant taxpayers are held accountable while maintaining fair treatment for compliant ones.

Enhanced Tax Compliance and Administration Efficiency

The implementation of the Automated Return Scrutiny Module aims to enhance tax compliance. By automating the scrutiny process, the module minimizes manual intervention and provides tax officers with a comprehensive overview of discrepancies. This not only improves the efficiency of tax administration but also increases transparency and fairness in the GST system.

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