GST Return Mismatch reports triggering GST Scrutiny Notice

An automated inspection module to verify GST Returns was launched by CBIC last week, which might result in assessees receiving notices if there are mismatch between different types of tax returns.

Using data analytics and identified risks, the technology enables tax authorities to examine Centre Administered Taxpayers’ GST returns. They may then get in touch with taxpayers via the GSTN Common Portal to handle any issues that may arise.

What are the mis-matches that would be considered?

ITC claimed in Form GSTR-3B vs. ITC auto-populated in Form GSTR2A/GSTR-2B.

Turnover declared in Form GSTR-3B vis-à-vis Form GSTR-1.

Claim of ITC from cancelled RTPs, aggregate turnover in GST return vis-à-vis Turnover disclosed in Income Tax return.

Turnover declared by RTP in Form GSTR-3B compared to turnover on which TDS deducted as reflected in Form GSTR-7 submitted by TDS deductor.

Turnover declared by RTP in Form GSTR-3B compared to turnover on which TCS collected as reflected in Form GSTR-8 submitted by TCS collector.

Turnover declared by RTP in Form GSTR-3B compared to minimum turnover expected on the basis of e-way bills generated in respect of the said RTP.

Refund-claim against purchase from taxpayer having no auto-population of ITC in Form GSTR-2A.

Purchases from non-existent RTPs.

RTPs having adverse reports in VAT/Service Tax/Central Excise who are operative in GST etc.