Answer

1. F

   Facts

   If you do not reply or pay within the time, the officer can move to a demand under Sec 73, 74 or 74A, or refer the case for audit or investigation. The SOP asks officers to start action within 15 days after the deadline.

2. P

   Provisions and law

   • Sec 61(3), CGST Act 2017If no satisfactory explanation or payment, the officer may proceed under Sec 65, 66, 67, 73 or 74
   • Instruction 02/2023-GSTSOP for scrutiny of returns from FY 2019-20 onwards using the ACES-GST scrutiny module
   • Sec 73, CGST Act 2017Demand for tax not paid or ITC wrongly availed without fraud, for periods up to FY 2023-24
3. A

   Analysis

   A demand includes tax, interest and penalty, and is harder to fight than a scrutiny query. Example: an unanswered Rs 2 lakh ITC point can become a show cause for Rs 2 lakh plus interest plus penalty of Rs 20,000 or more. Even if you missed the deadline, file a reply as soon as possible with an apology for delay. It may still help.

4. C

   Conclusion

   1. 1Do not ignore any scrutiny notice
   2. 2If the deadline is passed, file ASMT-11 at once with reasons for delay
   3. 3Pay clearly accepted amounts through DRC-03
   4. 4Prepare for a possible DRC-01A or show cause

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