Answer

1. F

   Facts

   Officers compare e-way bills generated with sales reported in returns. Differences can come from cancelled e-way bills, stock transfers, job work movements or returns that are not sales.

2. P

   Provisions and law

   • Sec 37(1), CGST Act 2017Every regular registered person must report outward supplies in GSTR-1 for each tax period.
   • Rule 142(1A), CGST Rules 2017Before a show cause notice, the officer may communicate the tax, interest and penalty ascertained in Part A of DRC-01A; the person may pay or give submissions in Part B.
3. A

   Analysis

   List e-way bills in the period and classify them: sales, stock transfers within the same GSTIN, job work, returns, and cancelled ones. Show that sales e-way bills match invoices reported in GSTR-1. Where an e-way bill was generated but the deal fell through, show cancellation or return. Pay only for real unreported sales.

4. C

   Conclusion

   1. 1Download the e-way bill list for the period.
   2. 2Classify each e-way bill by purpose.
   3. 3Match sales e-way bills with GSTR-1.
   4. 4Explain non-sales movements with documents.
   5. 5Pay any real difference and file Part B.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.