CBIC issues SOP for scrutiny of GST returns for FY 2019-20 onwards

This Tax Alert summarizes the recent Instruction issued by Central Board of Indirect Taxes and Customs (CBIC) prescribing Standard Operating Procedure (SOP) for scrutiny of returns under Goods and Services Tax (GST) for financial year (FY) 2019-20 onwards.

Earlier, vide Instruction No. 02/2022 - GST dated 22 March 2022, CBIC, as an interim measure, had issued SOP for scrutiny of returns for FY 2017-18 and 2018-19 till the time a scrutiny module for online scrutiny of returns is made available.

Directorate General (DG) Systems has now developed a functionality “Scrutiny of Returns” containing the online workflow for scrutiny of returns in the CBIC ACES-GST application.

In view of the same, CBIC has now issued revised SOP for scrutiny of returns for FY 2019-20 onwards.

The current SOP contains detailed guidelines for selection of returns, scrutiny process, schedule, timelines, reporting and monitoring of such scrutiny.

Further, it is also clarified that the earlier Instruction No. 02/2022 – GST will continue to apply for scrutiny of returns pertaining to FY 2017-18 and 2018-19.

Comments

• Through this instruction, CBIC has provided a clear and comprehensive framework for conducting scrutiny activities. This shall ensure a standardized approach and consistency in the scrutiny procedures.
  
• Since the notices are to be communicated by the officer on common portal, taxpayers may need to check the portal for such notices on a regular basis to avoid non-adherence of specified timelines for furnishing reply.