GST ASMT-10 – Notice for Discrepancies in GST Returns

Form GST ASMT-10 is the notice issued under section 61 of CGST Act, 2017 read with Rule 99 of CGST Rules, 2017 for intimating discrepancies in GST returns filed by taxpayer and seeking explanation for same.

1. What is Form GST ASMT-10?

Form GST ASMT-10 is the notice issued under section 61 of the Central Goods and Service Tax Act, 2017 [herein after referred to as CGST Act”] read with Rule 99 of the Central Goods and Service Tax Rules, 2017 [“herein after referred to as “”CGST Rules”] for intimating discrepancies in the GST returns filed by the taxpayer and seeking explanation for same.

2. What is provided in the provision of section 61 of the CGST Act and Rule 99 of the CGST Rule?

The provision of Section 61 of the CGST Act is reproduced below:

“Section 61. (1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.

(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.

(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74.”

The Provision of Rule 99 of the CGST Rule is reproduced below:

“Rule 99. Scrutiny of returns.- (1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy.

(2) The registered person may accept the discrepancy mentioned in the notice issued under sub-rule (1), and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer.

(3) Where the explanation furnished by the registered person or the information submitted under sub-rule (2) is found to be acceptable, the proper officer shall inform him accordingly in FORM GST ASMT-12.”

3. Steps to be taken in case of receipt of notice in GST Form ASMT-10?

A) Scenario 1 – The taxpayer does not agree with the discrepancies mentioned in GST Form ASMT-10

In this case the taxpayer shall file a reply in GST Form ASMT-11 explaining the reason for discrepancies. For example, if the taxpayer has received ASMT-10 intimating discrepancies between tax liability as per GSTR 1 and GSTR 3B. Wherein the tax liability reported in GSTR 1 is more than liability paid in GSTR 3B. The taxpayer shall identify the month in which there is difference between GSTR 1 and GSTR 3B, identify the invoices which are reported in GSTR 1and on which tax is not paid in GSTR 3B and explain the reason for the same. If the tax on the missing invoices have been paid subsequently then share the workings explaining the same.

B) Scenario 2 – The taxpayer agrees with the discrepancies mentioned in GST Form ASMT-10

If the taxpayer accepts the discrepancies as mentioned in GST Form ASMT-10 then he shall pay the tax along with interest and penalty, if any, and inform the proper officer in Form GST ASMT-11.

4. Where to find notice in GST Form ASMT-10?

Follow the following steps to download the GST Form ASMT-10:

I. Login to GST portal (https://services.gst.gov.in/services/login)

II. Go to “Services”

III. Go to “User Services”

IV. Go to “View additional notices and orders”

5. How to file a reply against ASMT-10?

I have attached herewith the format of GST Form ASMT-11. The taxpayer shall prepare reply in the attached form in (offline form) and follow the following steps:

I. Go to “View additional notices and orders”

II. Select the notice for which reply is to be file (in case of more than one notices)

III. Go to “Reply”

IV. Copy paste reply from the offline GST Form ASMT-11.

V. Attach the annexures (if any)

VI. File using DSC or EVC

6. Within how many days the taxpayer should file a replay in ASMT-11?

As per Section 61 of the CGST Act, the taxpayer shall file a reply within 30 days of being informed i.e. 30 days from date of receipt of notice. However, the GST Form ASMT-10 itself mentions the date by which reply should be file.

7. What are the different kinds of discrepancies for which notice in ASMT-10 will be issued?

Following are the some of the examples of discrepancies for which notice in ASMT-10 can be issued

A. Difference between the tax liability reported in GSTR 1 & GSTR 3B

B. Difference between the tax liability as per E-Way Bills & GSTR 3B

C. Difference between input tax credit as per GSTR 2A and GSTR 3B

One can ask a question as to whether department can issue a notice in GST Form ASMT-10 in case there is a difference in input tax credit claimed between GSTR 3B and GSTR 2A and output liability reported in GSTR 3B and E-Way Bill, as both are not a return under CGST Act.

For this we can go back to provision of sub-section 1 of section 61 and sub-rule 1 of rule 99 which says:

Section 61. (1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.

Rule 99. Scrutiny of returns.- (1) Where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing taxpayer of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount payable in relation to such discrepancy.

Accordingly, the details mentioned in E-Way bills and GSTR 2A are the related particulars available to the proper officer which he can use to scrutinize the returns filed in GTSR 1 and GSTR 3B and if any discrepancies found notice can be issued in Form GSTR ASMT-10.

8. What will be the next step by department once reply is filed in ASMT-11?

If the reply submitted in ASMT-11 is found to be satisfactory by the proper officer than he will issue an Order in ASMT-12 accepting the reason provided by the taxpayer.

If the reply submitted in ASMT-11 is found to be non-satisfactory by the proper office or the taxpayer fails to pay the tax, interest and penalty, if any, as accepted in ASMT-11, the proper officer may take appropriate action including those under section 65 or 66 or 67, or proceed to determine the tax and other dues under section 73 or 74.

There is no time line mentioned for issue of ASMT-12.

SUMMARY OF PROCEEDINGS UNDER SECTION 61

Form GST ASMT –  11
[ See Rule 99 (2) ]
Reply to the notice issued under section 61 intimating discrepancies in the return

1. GSTIN
2. Name
3. Details of the notice				Date :
4. Tax Period
5. Reply to the discrepancies
Sr.No.	Discrepancy		Reply
1

6. Amount admitted and paid if any – As per our detailed comments in Annexure 1.

Act	Tax	Interest	Others	Total
IGST	–	–	–	–
CGST	–	–	–	–
SGST	–	–	–	–

7. Verification –

I  __________,  hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

For,

Name :-

Designation / Status –

Date:-

Download  Format of Form GST ASMT-10 in Excel Format