Chapter XII - Assessment
Section 61
Section 61: Scrutiny of returns
Section 61 lets the proper officer scrutinise GST returns, seek an explanation of discrepancies and proceed further if the response or correction is insufficient.
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Need advice on Section 61?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The proper officer may scrutinize the return and related particulars furnished by the registered person to verify the correctness of the return and inform him of the discrepancies noticed, if any, in such manner as may be prescribed and seek his explanation thereto.
(2) In case the explanation is found acceptable, the registered person shall be informed accordingly and no further action shall be taken in this regard.
(3) In case no satisfactory explanation is furnished within a period of thirty days of being informed by the proper officer or such further period as may be permitted by him or where the registered person, after accepting the discrepancies, fails to take the corrective measure in his return for the month in which the discrepancy is accepted, the proper officer may initiate appropriate action including those under section 65 or section 66 or section 67, or proceed to determine the tax and other dues under section 73 or section 74 or section 74A.
Introduction
A scrutiny communication identifies apparent return discrepancies and invites the registered person to explain them.
Key takeaways
Officer review
The officer may compare a return with related particulars and notify discrepancies in the prescribed manner.
Accepted explanation
If the response is acceptable, the person is informed and no further action is taken on that matter.
Unresolved discrepancy
If no satisfactory explanation is furnished within thirty days or allowed extension, or accepted discrepancies are not corrected, the officer may proceed with audit, special audit, inspection or tax determination as applicable.
Officer review
The officer may compare a return with related particulars and notify discrepancies in the prescribed manner.
Accepted explanation
If the response is acceptable, the person is informed and no further action is taken on that matter.
Unresolved discrepancy
If no satisfactory explanation is furnished within thirty days or allowed extension, or accepted discrepancies are not corrected, the officer may proceed with audit, special audit, inspection or tax determination as applicable.
Practical checklist
Do
- Identify the exact return period and mismatch.
- Reconcile source documents and prepare a supported response.
- Track the thirty-day period or allowed extension.
- Make any accepted correction in the prescribed return process.
Avoid
- Assume a prescribed or notified detail without checking the applicable current instrument.
Frequently asked questions
Does a scrutiny notice itself establish a tax demand?
No. Section 61 provides an explanation and follow-up route; determination can follow separately if unresolved.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026