CBIC issues Standard Operating Procedure (SOP) for GST Return Scrutiny

CBIC issues SOP for GST Return Scrutiny, Parameters for GST Return Scrutiny laid by CBIC, and Timeline for GST Return Scrutiny

For the Financial Year (FY) 2017-18 and 2018-19, the Central Board of Indirect Taxes and Customs (CBIC) has published thorough instructions on “How to conduct GST Audits?”. On March 22, 2022, the CBIC’s GST Policy Wing issued GST Instruction No. 02/2022-GST which conducts information on the GST Return scrutiny its parameters, timelines, and other related information. In -this article information on CBIC issues SOP for GST Return Scrutiny belonging to FY 2017-18 and 2018-19 is mentioned.


According to the CBIC, all officers must select scrutiny cases based on specific risk criteria. The list of GST Identification Number (GSTIN) accounts is chosen by the Directorate General of Analytics and Risk Management (DGARM). DGARM send the GST Returns to the tax officers once they’ve chosen which ones to examine. Based on this, if a GST Officer finds any objection in an individual’s filing, the individual must provide a fair explanation for the information on which the objection is being raised.

Important information on CBIC Issues SOP for GST Return Scrutiny

The SOP guarantees that officials use available data, such as e-way bills created, data from DGARM, the ADVAIT, GST Network, and similar official data, while conducting the audit. These records are updated and shared with field personnel on a regular basis. Officials must pay close attention to taxpayers’ claims for Input Tax Credit (ITC). According to the regulations, each tax officer is allowed to pick up three GSTINs every month. Every GSTIN’s GST Returns must be reviewed throughout the financial year.


They can issue a detailed notice stating the tax amount due, interest, and any other liability payable if they uncover any anomalies. The SOP also emphasizes that returns must be scrutinized promptly so that appropriate action can be taken quickly to protect revenue collections. Below is the information on the Parameters for Scrutiny laid by CBIC.

Parameters for GST Return Scrutiny laid by CBIC

  • ITC (Input Tax Credit) claims on invoices raised by suppliers whose GST registrations have been canceled must be thoroughly reviewed.

  • To see if an excess credit is claimed against the discharged value, reconcile the tax liability in Tables 3 and 5 of Form GSTR-2A, as well as Table 3.1(d) with the ITC, claimed in Tables 4(A)(2), (3), and 6.1 of Form GSTR-3B.

  • Table 4(A)(4) of Form GSTR-3B must be reconciled with Table 7 of Form GSTR2A for ITC claims on credits received from the Input Service Distributor.

  • If the Form GSTR-3B for a given tax year is submitted after the required deadline for claiming Input Tax Credit on an invoice or debit note under Section 16(4) of the CGST (Central Goods and Service Tax) Act, no ITC (Input Tax Credit) can be claimed.

  • According to Section 50 of the CGST (Central Goods and Service Tax) Act, the taxpayer must have paid interest liability.

  • For appropriate reversals, government authorities must look for any ineligible ITC claimed on invoices or debit notes created by suppliers who have not completed their Form GSTR-3B filings for the tax period.

  • They must determine whether the taxpayer reversed ITC in accordance with CGST Rules 42 and 43. Finally, under Section 47 of the CGST Act, the taxpayer must have paid the late fee.

Timeline for GST Return Scrutiny


Timeline for Event

The list of GSTINs chosen for inspection by the nodal officer is distributed to the appropriate officers.

Within three working days.

List of GSTINs to be scrutinized (from the DGARM to the nodal officer of the Commissionerate concerned).

on timely basis.

Where appropriate, the proper officer will issue a notice informing of anomalies in FORM GST ASMT-10.

Within the month, as specified in the examination schedule for the relevant GSTIN’s returns.

Issuance of an order in FORM GST ASMT12 for the registered person’s reply to be accepted, if appropriate.

Within thirty days of receiving the registered person’s response in FORM GST ASMT-11.

In circumstances where the registered person fails to respond, appropriate action is taken to determine the tax and other dues under section 73 or section 74.

Within fifteen days of the expiration of the thirty-day period following the issuing of the notice in FORM GST ASMT-10, or such longer term as the proper officer permits.

In FORM GST ASMT-11, the registered person responds.

Within thirty days of receiving notification in FORM GST ASMT-10 from the proper officer, or such longer period as the proper officer may permit.

With the permission of the concerned Assistant/Deputy Commissioner, the scrutiny timetable is finalised.

Within 7 working days of receiving the pertinent GSTINs’ details from the nodal officer.

If applicable, a referral to the Commissioner for a determination on whether or not to take action under section 65, section 66, or section 67.

Within 30 days of receiving the registered person’s response in FORM GST ASMT-11, or within 45 days of the issuance of FORM GST ASMT-10 if no reason is provided by the registered person.


CBIC has released SOP to guarantee uniformity in the identification of returns for scrutiny, methodology of scrutiny of such returns, and other associated procedures till a Scrutiny Module for online scrutiny of returns is made available. The SOP contains extensive recommendations on the selection of returns, the scrutiny procedure, the timelines, reporting, timetable, and monitoring, as well as the proper officer who is authorized to conduct such inspection.

Categories: GST
Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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