Circular No. 07/2021 dated 07.11.2021 – Instructions/Guidelines regarding procedure to be followed in scrutiny of returns and thenceforth actions: Kerala GST 

𝐆𝐈𝐒𝐓: 

𝐅𝐥𝐚𝐠𝐠𝐞𝐝 𝐑𝐢𝐬𝐤 𝐏𝐚𝐫𝐚𝐦𝐞𝐭𝐞𝐫𝐬:  • ASMT13 – Return within 30 days • ITC utilisation greater than 5 times cash • Turnover above 1crore cash nil • Turnover above 60 percent • 2A-3B ITC Comparison • GSTR9-8D Difference • ITC availed after due date • Capital goods ITC vs Exempted turnover • GSTR-1 Vs GSTR 3B mismatch • GSTR 3B Vs E-way bill • Turnover less than TDS and TCS. 

𝐑𝐢𝐬𝐤 𝐏𝐚𝐫𝐚𝐦𝐞𝐭𝐞𝐫𝐬 𝐫𝐞𝐪𝐮𝐢𝐫𝐢𝐧𝐠 𝐝𝐞𝐭𝐚𝐢𝐥𝐞𝐝 𝐞𝐧𝐪𝐮𝐢𝐫𝐲/𝐢𝐧𝐯𝐞𝐬𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 • ASMT13 – Return within 30 days • ITC utilisation greater than 5 times cash • Turnover above 1crore cash nil • Turnover above 60 percent 

𝐒𝐭𝐞𝐩𝐬: 

– 𝙳𝚒𝚜𝚌𝚛𝚎𝚙𝚊𝚗𝚌𝚢 𝙽𝚘𝚝𝚒𝚌𝚎:
In Form GST ASMT-10 

– 𝚁𝚎𝚙𝚕𝚢:
In Form GST ASMT-11 via portal or e-mail 

– 𝙾𝚛𝚍𝚎𝚛:
Order of acceptance in Form GST ASMT-12 stating that the discrepancy intimated requires detailed enquiry or investigation. 

– 𝙿𝚛𝚎-𝚂𝙲𝙽 𝙸𝚗𝚝𝚒𝚖𝚊𝚝𝚒𝚘𝚗:
Intimation in Part A of Form GST DRC-01 A u/s. 73(5) or 74(5) – then contact the Noticee and request him to furnish a reply in Part B of Form GST DRC-01 A through the registered e-mail Id. 

– 𝚂𝙲𝙽:
Issuance of Show-Cause Notice along with DRC-01. ‘Nil’ demand order along with summary will be issued if the demand is not quantified by stating that the subject matter requires detailed enquiry and consideration. 

𝗜𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻𝘀/𝗴𝘂𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 𝗼𝗻 𝗜𝗧𝗖 𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝗿𝗶𝘀𝗸 𝗽𝗮𝗿𝗮𝗺𝗲𝘁𝗲𝗿𝘀 

𝟸𝙰-𝟹𝙱 𝙸𝚃𝙲 𝙲𝚘𝚖𝚙𝚊𝚛𝚒𝚜𝚘𝚗 𝚘𝚛 𝙶𝚂𝚃𝚁𝟿-𝟾𝙳 𝙸𝚃𝙲 𝙳𝚒𝚏𝚏𝚎𝚛𝚎𝚗𝚌𝚎 (𝙱𝚎𝚌𝚊𝚞𝚜𝚎 𝚋𝚘𝚝𝚑 𝚊𝚛𝚎 𝚏𝚘𝚛 𝙸𝚃𝙲 𝙳𝚎𝚏𝚎𝚌𝚝)
16(2) (c) – Supplier paying the tax – Burden of proof on theNoticee– Comment: Noticee may have to get the details of the supplier’s payment.
Table 8D of the annual return in Form GSTR 9 of the taxpayer is negative. 

𝙸𝚃𝙲 𝚊𝚟𝚊𝚒𝚕𝚎𝚍 𝚊𝚏𝚝𝚎𝚛 𝚍𝚞𝚎 𝚍𝚊𝚝𝚎
For 2017- 18, as per ROD 02/2018-Central Tax, the last date to avail ITC was 23.04.2019, the last date for 2018-19 was 20.10.2019 and the last date for 2019-20 was 20.10.2020 

𝙲𝚊𝚙𝚒𝚝𝚊𝚕 𝚐𝚘𝚘𝚍𝚜 𝙸𝚃𝙲 𝚟. 𝙴𝚡𝚎𝚖𝚙𝚝𝚎𝚍 𝚝𝚞𝚛𝚗𝚘𝚟𝚎𝚛
The ITC on Capital goods can be credited to the Electronic Credit Ledger infull in the month of inward supply made and the proportionate ITC, of the said capital goods, not related to the taxable supply/non business purpose has to be reversed under Rule 43 of KSGST Rules, 2017. 

𝐈𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧𝐬/𝐠𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬 𝐨𝐧 𝐨𝐮𝐭𝐰𝐚𝐫𝐝 𝐬𝐮𝐩𝐩𝐥𝐲 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐫𝐢𝐬𝐤 𝐩𝐚𝐫𝐚𝐦𝐞𝐭𝐞𝐫𝐬  

𝙶𝚂𝚃𝚁-𝟷 𝚟. 𝙶𝚂𝚃𝚁 𝟹𝙱 𝚖𝚒𝚜𝚖𝚊𝚝𝚌𝚑
Notice can be issued in such cases where output tax due as per the Form GSTR 1 is greater than that reported in Form GSTR 3B 

𝙶𝚂𝚃𝚁 𝟹𝙱 𝚅𝚜 𝙴-𝚠𝚊𝚢 𝚋𝚒𝚕𝚕
If the output tax due as per the said E-way bill report is higher than the output tax due declared in Form GSTR 3B, then notice shall be issued in such cases. 

𝚃𝚞𝚛𝚗𝚘𝚟𝚎𝚛 𝚕𝚎𝚜𝚜 𝚝𝚑𝚊𝚗 𝚃𝙳𝚂 𝚊𝚗𝚍 𝚃𝙲𝚂
If the turnover reported in Form GSTR 3B during the period is less than the turnover available under TDS or TCS as the case may be, the explanation shall be asked.

Circular No. 7/2021 link.

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