Time Barring of Scrutiny of GST Returns of Delhi Taxpayers For The FY 2017-18, 2018-19 & 2019-20

The Delhi GST Department said in a Circular vide F.3/432/GST/Policy/2022/582-89 on 08 May, 2023, regarding the time barring of Scrutiny of GST Returns of Delhi taxpayers for the FY 2017-18, 2018-19 & 2019-20.

A significant development regarding the time barring of scrutiny for Goods and Services Tax (GST) returns of taxpayers in Delhi. For the financial years 2017-18, 2018-19, and 2019-20, important changes have been implemented to streamline the process. These changes specifically address the time limits for scrutinizing GST returns, providing clarity and setting a framework for the proper examination of returns within specified timeframes. 

As per Section 73(10) of the DGST Act, the Proper Officer is required to issue the order, as specified in subsection (9), within a period of three years from either the due date for filing the annual return for the relevant financial year in which the tax was unpaid or underpaid, or from the date of the incorrect refund.

The provision of scrutiny returns is specified u/s 61 of 2017 & rule 99 of the DGST Rules.

Click here to access the Circular

The Ministry of Finance, Government of India, through a notification (No. 9/2023 Central Tax) dated March 31, 2023, has recently extended the prescribed time limit mentioned in Section 73(10) of the CGST Act, 2017. This extension pertains to the issuance of orders under Section 73(9) for the recovery of unpaid or underpaid taxes, as well as the incorrect utilization or availing of an input tax credit. 

However, this extension applies only to cases that do not involve fraud, willful misstatement, or the intentional suppression of facts to evade taxes. The specific period to which this extension applies is detailed below.

The scrutiny process of returns as per Section 61 and Rule 99 of the DGST Act typically spans a duration of approximately five to six months. Therefore, it is advised that all ward Proper Officers (PO)/Incharges ensure timely issuance of orders under Section 73(9) for the scrutiny of returns, adhering to the specified time frame mentioned in the CBIC notification No. 9/2023 Central Tax dated March 13, 2023.