• Selection for Scrutiny:

  • Tax authorities may select taxpayers for scrutiny based on risk parameters, discrepancies in returns, random selection, or specific intelligence.

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• Types of Scrutiny:

  • Desk Review: Preliminary examination of GST returns and documents without physical presence.

  • Detailed Scrutiny: In-depth examination involving physical verification of documents and records at the taxpayer's premises.

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• Documents Required:

  • GST registration certificate

  • GST returns and supporting documents

  • Purchase and sales invoices

  • Input tax credit details

  • Financial statements and books of accounts

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• Objectives:

  • Verify the correctness of GST return filings.

  • Ensure proper utilization of input tax credit.

  • Detect tax evasion or non-compliance with GST laws.

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• Process:

  • Notice: Tax authorities issue a notice to the taxpayer informing them of the scrutiny and requesting documents.

  • Verification: Officials examine the documents and records to verify compliance with GST laws.

  • Outcome: After scrutiny, the taxpayer may be asked to rectify errors, pay additional taxes, or face penalties if non-compliance is found.