Get insights into Form GST ASMT-10 – a notice issued under Section 61 with Rule 99 of the CGST Act. Understand the obligations of the proper officer and the taxpayer. Learn about the timelines for proceedings and consequences if discrepancies are not addressed promptly.
The Proper Officer informs the discrepancy in form GST ASMT-10 which (discrepancy) has been noticed while scrutinizing the returns furnished by the Tax Payer. The notice issued in form ASMT-10 is an opportunity to the Taxpayer to rectify the discrepancy. If there is no discrepancy according to the Tax Payer, he shall clarify about no discrepancy. In this article the followings have been discussed in regard to the form GST ASMT-10.
> What is form GST ASMT-10?
> The Proper Officer’s Obligations while issuing ASMT-10
> The Tax Payer’s Obligations
> The Proper Officer’s Obligations after receiving reply in form GSTR ASMT-11
> Consequences if no explanation made, explanation made but not satisfactory and discrepancy accepted but failed to pay the tax and interest and other amount if payable.
> Timelines for proceedings initiating by issuing notice in form GST ASMT-10
What is form GST ASMT-10?
The ASMT-10 is a notice issued under section 61 read with rule 99 of the CGST Act. This notice is issued by the proper officer when he noticed discrepancies in the return furnished by the tax-payer and tax was either not paid or short paid due to such discrepancy. Such discrepancies may be come to the knowledge of the proper offer when –
1. There is difference between furnished returns GSTR-3B and GSTR-1.
2. There is difference between input tax credit availed in GSTR-3B and input tax being reflected in GSTR-2A.
3. There may be other reasons of differences such as output supply or input tax availed in the returns not matching with e-way bills, e-invoice portals etc..
Thus, ASMT-10 is issued to bring into the notice of the taxpayer of any discrepancy happened in furnished returns. It is an opportunity to rectify the mistake occurred in furnished returns.
The Proper Officer’s Obligations while issuing ASMT-10
1. Inform discrepancies as noticed by him in the form GST ASMT-10.
2. The Proper Officer may, as far as possible, quantify the amount of tax, interest and any other amount payable in relation to such discrepancies.
3. The discrepancies so communicated may, as far as possible, be specific in nature and not vague or general.
4. The Proper Officer should take into consideration of payments already made through DRC-03 by the Taxpayer while issuing Form GST ASMT-10.
The Tax Payer’s Obligations
1. The Tax Payer shall reconcile the discrepancies.
2. The Tax Payer if accepts the discrepancies, shall pay the tax along with interest arising from such discrepancy.
3. After payment discharge the liability through DRC-03.
4. Reply to the notice ASMT-10 shall be made in form GST ASMT-11 by the Tax Payer in both cases i.e. the case accepting the discrepancy and/or there is no discrepancy.
The Proper Officer’s Obligations after receiving reply in form GSTR ASMT-11
Upon receiving the explanation or information provided by the registered person regarding the acceptance of discrepancies and payment of dues, if the proper officer finds it to be satisfactory, they will conclude the proceedings by notifying the registered person in Form GST ASMT-12.
Consequences if no explanation made, explanation made but not satisfactory and discrepancy accepted but failed to pay the tax and interest and other amount if payable.
1. If the registered person fails to provide any explanation, the proper officer has the authority to determine the tax and other dues under section 73 or section 74.
2. In cases where the explanation provided by the registered person is deemed unsatisfactory, the proper officer may proceed with the determination of tax and other dues under section 73 or section 74.
3. If the registered person’s explanation is accepted regarding the discrepancy, but they fail to pay the required tax, interest, or any other payable amount, the proper officer may take further action as deemed necessary. This may include initiating an audit or investigation to accurately determine the liability of the registered person.
Timelines for proceedings initiating by issuing notice in form GST ASMT-10
| S. No. | Action | Timeline |
|---|---|---|
| 1 | Reply by the registered person (FORM GST ASMT-11) | Within 30 days of being informed by the proper officer (FORM GST ASMT-10) or within a further period permitted by the proper officer |
| 2 | Issuance of acceptance order (FORM GST ASMT-12) | Within 30 days from receipt of reply from the registered person (FORM GST ASMT-11) |
| 3 | Initiation of action for tax determination (Section 73/74) | Within 15 days after 30 days of notice issuance (FORM GST ASMT-10) or within a further period permitted by the proper officer |
| 4 | Initiation of action for non-acceptable reply (FORM GST ASMT-11) | Within 30 days from receipt of reply from the registered person (FORM GST ASMT-11) |
| 5 | Referral to Audit Commissionerate or Anti-evasion Wing (Sections 65/66/67) | Within 30 days from receipt of reply from the registered person (FORM GST ASMT-11) or within 45 days of notice issuance (FORM GST ASMT-10) if no explanation provided by the registered person. |
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