Section 61 of CGST Act, 2017 : Section 61: Scrutiny Of Returns

Explanation using Example

Imagine a business owner, Mr. A, who runs a small electronics store and is registered under the GST regime. He submits his monthly GST return, detailing his sales, purchases, and the input tax credit claimed.

The proper officer, upon scrutinizing Mr. A's return, notices that the input tax credit claimed is unusually high compared to the purchases reported. The officer informs Mr. A of this discrepancy and seeks an explanation.

Mr. A reviews his records and realizes that he mistakenly included the input tax credit from some invoices twice. He provides a satisfactory explanation and corrects the error in his next GST return. The proper officer, after reviewing the explanation and the corrected return, is satisfied and informs Mr. A that no further action will be taken.