GST
ASMT-10 for ITC from a cancelled supplier
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Facts
ASMT-10 is a scrutiny notice under Sec 61 asking you to explain. Reply in ASMT-11 with evidence; if accepted, the officer closes it in ASMT-12.
Provisions and law
- Sec 61(1), CGST Act 2017The officer may scrutinise returns and seek an explanation for discrepancies (ASMT-10); if the explanation is accepted, no further action is taken.
- Sec 155, CGST Act 2017The person who claims ITC has the burden of proving that the claim is genuine.
- Sec 16(2)(c), CGST Act 2017ITC is allowed only if the tax charged has actually been paid to the Government by the supplier.
Analysis
This is the earliest and cheapest stage to resolve. Give a clear reconciliation and evidence of genuine purchase and payment. If you agree some credit is wrong, pay it with interest through DRC-03 and mention it. A weak reply often leads to DRC-01A and then a show cause notice.
Conclusion
- Download ASMT-10 and list the discrepancies.
- Prepare reconciliation and evidence for the supplier.
- Pay any admitted amount with DRC-03.
- File ASMT-11 with documents and keep acknowledgement.
A Savvy can do this for you
Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)
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