Indore (Madhya Pradesh): Assessment notices, commonly known as ASMT-10 notices, are currently being issued in the state for the scrutiny of GST returns for the financial year 2024-25 by the GST Department.
In the notices, numerous practical and legal questions have arisen concerning the additional information, documents and data requested, as well as the varying timeframes stipulated for submitting responses.
The notices have become a subject of serious discussion among taxpayers and tax professionals.
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.
In the notice, differences between the declared tax and department data, such as GSTR-1 versus GSTR-3B or GSTR-2B mismatches, are highlighted. It also gives taxpayers a chance to explain the gap.
However, tax experts have highlighted that under the prescribed procedure for return scrutiny (Section 61 of the GST Act), a taxpayer is supposed to be given a 30-day window to submit an explanation upon being informed of a discrepancy.
However, in many instances, notices have prescribed varying deadlines, such as nine, 11, 13, 15, 17, 21 or 23 days, for submitting responses, thereby raising questions regarding the uniformity and legality of the process.
\Members stated that 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 setting of varying and extremely short timeframes across different cases is creating undue compliance pressure on taxpayers and their authorised representatives.
To address these issues, institutional members from across the state shared their experiences during a meeting jointly organised by the Commercial Tax Practitioners Association (CTPA) and MPTLBA here on Saturday.
Presenting copies of ASMT-10 notices received by taxpayers, 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 remarked that the office-bearers of CTPA Indore and MPTLBA took the notices and suggestions presented by their members seriously.
They decided to compile all major objections and practical difficulties received and submit a detailed memorandum to the Commissioner, State GST Department.
