📆🔍 Stay Compliant with Ease: CBIC's SOP Shapes GST Returns Scrutiny Process! 💼🚀

 📦🔎 The Central Board of Indirect Taxes and Customs (CBIC) has introduced a detailed standard operating procedure (SOP) for the examination of returns under the goods and services tax (GST) system starting from 2019-20 onwards.

🔍📆 To ensure fairness, the SOP limits officials from issuing multiple notices within a single financial year. Moreover, before sending a notice, officials must verify the most up-to-date records.

📜 The procedure emphasizes that the notice should be specific, clearly stating the discrepancies in the return, such as the amount of tax, interest, or any other payable sum. Taxpayers should be given a designated period of 30 days to explain these discrepancies.

🔒📣 "It is important to communicate discrepancies in a clear and specific manner, avoiding vague or general statements," stated the SOP circular.

📩💻 The circular also mandates officials to notify taxpayers about the scrutiny notice through the common portal, eliminating the need for manual communication.

📑 Officials will be required to upload worksheets and supporting documents for review.

⏰🚫 Only when a satisfactory explanation is not provided by the registered person within the given timeframe, or if taxpayers acknowledge the discrepancies but fail to pay the tax and interest, can the proper officer proceed with determining the tax and other dues under Section 73 or Section 74 of the CGST Act, according to the circular.

📅✉️ The circular further advises officials to prioritize cases based on risk and potential revenue impact while creating scrutiny schedules. Officials are instructed to issue notices within 30 days of the scrutiny schedule listed on the system, taking into account risk parameters.

🔍🔢 For the years 2019-20 onwards, the online scrutiny process will be conducted through the ACES-GST application. However, the traditional scrutiny methods will continue to be followed for the years 2017-18 and 2018-19.

🗣️💼 "The implementation of this SOP will establish a consistent and standardized approach for authorities when scrutinizing taxpayers' filed returns," said Abhishek Jain, partner & national head-indirect tax at KPMG.

💡✅ Key Takeaways:

• 1. The CBIC has introduced a standard operating procedure (SOP) for scrutinizing GST returns from 2019-20 onwards.
• 2. Officials can only issue one notice per financial year and must verify the latest records before sending it.
• 3. The notice should be specific, quantifying the discrepancies and providing a 30-day window for taxpayers to explain them.
• 4. Communication about scrutiny will be done via the common portal, eliminating the need for manual communication.
• 5. Prioritization of cases based on risk and revenue implications is emphasized.
• The online scrutiny process will be used for 2019-20 onwards, while earlier methods will be followed for previous years.