GST ASMT 10 Notices Spark Concern Over Deadline Variations

The GST Department in Madhya Pradesh has been issuing ASMT-10 notices for the scrutiny of GST returns for the financial year 2024-25.

These notices have raised practical and legal questions among taxpayers and tax professionals regarding the additional information and documents requested, as well as the varying timeframes stipulated for submitting responses.

ASMT-10 is an official notice issued by a tax officer under Section 61 of the CGST Act when they find a mismatch or error in the filed returns. It is a scrutiny notice, not a final tax demand or penalty, and highlights differences between the declared tax and department data.

Tax experts have pointed out that under the prescribed procedure for return scrutiny, a taxpayer is supposed to be given a 30-day window to submit an explanation upon being informed of a discrepancy.

However, many notices have prescribed varying deadlines, such as nine, 11, 13, 15, 17, 21, or 23 days, for submitting responses, raising questions regarding the uniformity and legality of the process.

The Commercial Tax Practitioners Association (CTPA) and MPTLBA jointly organised a meeting where institutional members shared their experiences and presented copies of ASMT-10 notices received by taxpayers.

The members apprised the leadership of the discrepancies noted, the demands for specific information and documents, and the practical difficulties encountered in complying with these notices.

GST expert Ashiwn Lakhotia stated that the office-bearers of CTPA Indore and MPTLBA took the notices and suggestions presented by their members seriously and decided to compile all major objections and practical difficulties received and submit a detailed memorandum to the Commissioner, State GST Department.

The setting of varying and extremely short timeframes across different cases is creating undue compliance pressure on taxpayers and their authorised representatives.

If the objective of scrutiny is to identify genuine discrepancies and provide the taxpayer an opportunity to explain them, then the language of the notice, the information sought, and the prescribed timeframes must be clear, consistent, rational, and in accordance with the law.

The issue highlights the need for a uniform and consistent approach in the scrutiny of GST returns to avoid undue compliance pressure on taxpayers and ensure a fair and efficient tax administration system.

The submission of a detailed memorandum to the Commissioner, State GST Department, is expected to address these issues and provide clarity on the scrutiny process for taxpayers and tax professionals.