Section 61 of CGST Act - Scrutiny of Returns
Updated: 15 September 2026
Section 61 of the Central Goods and Services Tax Act, 2017 empowers the proper officer to scrutinize a registered person's return and related particulars, identify discrepancies and seek an explanation. The scrutiny procedure is supplemented by Rule 99 of the CGST Rules and Forms GST ASMT-10, ASMT-11 and ASMT-12.
Section 61 - statutory provision and meaning
Section 61(1): The proper officer may scrutinize the return and related particulars furnished by a registered person to verify the correctness of the return. If discrepancies are noticed, the officer may communicate them in the prescribed manner and seek an explanation.
Section 61(2): If the explanation is found acceptable, the registered person is informed accordingly and no further action is taken in respect of that scrutiny.
Section 61(3): If a satisfactory explanation is not furnished within thirty days of being informed, or within such further period as the proper officer permits, or if an accepted discrepancy is not corrected, the officer may initiate appropriate action under Sections 65, 66 or 67, or proceed for determination of tax and other dues under Sections 73, 74 or 74A, as applicable.
Current-law point: Section 74A was added to the consequential-action clause in Section 61(3) with effect from 1 November 2024. Accordingly, an older reproduction of Section 61 that ends only with Sections 73 and 74 is no longer complete.
How scrutiny of returns works under Rule 99
Rule 99 of the Central Goods and Services Tax Rules, 2017 prescribes the procedure for scrutiny. Where a return is selected for scrutiny, the proper officer examines it with reference to information available to the officer. If a discrepancy is found, the officer communicates it through FORM GST ASMT-10 and seeks an explanation. The notice may, where possible, quantify the tax, interest and other amount connected with the discrepancy.
- Return selected for scrutiny: the proper officer examines the return and related information for correctness.
- Discrepancy communicated: discrepancies are communicated in FORM GST ASMT-10.
- Taxpayer response: the registered person may accept the discrepancy and make the required payment/correction, or furnish an explanation in FORM GST ASMT-11.
- Closure: where the explanation or information is acceptable, the officer communicates acceptance in FORM GST ASMT-12.
- Escalation where unresolved: if the discrepancy remains unexplained or accepted corrective action is not taken, proceedings contemplated by Section 61(3) may follow.
Forms used in scrutiny proceedings
| Form | Purpose |
|---|---|
| GST ASMT-10 | Notice communicating discrepancies noticed during scrutiny and seeking the registered person's explanation. |
| GST ASMT-11 | Response by the registered person, including acceptance/payment relating to a discrepancy or an explanation contesting it. |
| GST ASMT-12 | Communication by the proper officer where the explanation or information furnished is found acceptable. |
What can happen if the discrepancy is not resolved?
Section 61 scrutiny is a verification mechanism. Where the response is satisfactory, the scrutiny is closed. Where it is not satisfactory, Section 61(3) permits the proper officer to initiate appropriate statutory action. Depending on the facts and the relevant tax period, this may include:
- Section 65 - Audit by tax authorities;
- Section 66 - Special audit;
- Section 67 - Inspection, search and seizure; or
- determination of tax and other dues under Section 73, Section 74, or Section 74A, as legally applicable.
Practical points when an ASMT-10 notice is received
A registered person should first identify the return period and each discrepancy stated in ASMT-10, reconcile the figures with the relevant GST returns, books, invoices and other supporting records, and answer each point clearly in ASMT-11. Where the discrepancy is accepted, the applicable tax, interest and other amount should be dealt with in accordance with law and the payment details should be referenced in the response.
Where the discrepancy is disputed, the reply should explain the reconciliation and attach or identify supporting documents. The statutory framework gives thirty days under Section 61(3), subject to such further period as may be permitted by the proper officer. Taxpayers should also comply with the specific response period stated in the notice and seek an extension promptly where necessary.
Related provisions
Section 61 forms part of Chapter XII (Assessments) of the CGST Act. For context, see Section 59 - Self-assessment, Section 60 - Provisional assessment, Section 62 - Assessment of non-filers, Section 63 - Assessment of unregistered persons and Section 64 - Summary assessment.
Note: This page is a general legal reference. Applicability of Sections 73, 74 or 74A and other consequences depends on the tax period, facts and the law in force for the relevant proceeding.