GST
Scrutiny of a composition taxpayer
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Facts
Yes. Sec 61 applies to any registered person's returns. For composition taxpayers, scrutiny compares CMP-08 and GSTR-4 with e-way bills, purchases and turnover limits.
Provisions and law
- Sec 61, CGST Act 2017Proper officer may scrutinise returns, inform discrepancies and seek an explanation
- Sec 10, CGST Act 2017Composition levy with turnover limits and conditions such as no inter-State outward supply
Analysis
Typical points are turnover above the composition limit, inter-State sales, purchases far above declared turnover, or a wrong rate. Example: GSTR-4 shows Rs 1.2 crore turnover but purchases in GSTR-4A are Rs 1.6 crore; explain closing stock or show the real turnover. If you crossed Rs 1.5 crore, you may have to move to the regular scheme and pay tax at normal rates.
Conclusion
- Compare CMP-08 and GSTR-4 with purchases and e-way bills
- Explain stock and timing with records
- Check if turnover crossed the composition limit
- Reply in ASMT-11 with documents
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Scrutiny of returns
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