Scrutiny of returns
Section 61, CGST Act
Straight from CBIC
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Amendment history
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In one line
Section 61 allows the officer to SCRUTINISE returns for discrepancies (e.g. via ASMT-10) and seek the taxpayer’s explanation; if unsatisfied, further action (audit, s.65/66, or demand under s.73/74) may follow.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
Discrepancy goes out in ASMT-10; the reply is ASMT-11 within thirty days; acceptance is recorded in ASMT-12.
Scrutiny is not adjudication – the officer cannot create a demand under section 61. Ignoring an ASMT-10 is what converts it into a section 73 or 74A notice.
Most ASMT-10 notices are auto-generated from GSTR-1 versus GSTR-3B versus GSTR-2B comparisons; answer with the reconciliation, not with an explanation in prose.
Questions people actually ask
Real questions we get on this provision, answered straight.
We received an ASMT-10 for a 2B mismatch. How serious is it?+
It is a scrutiny notice, not a demand. File ASMT-11 within thirty days with a reconciliation showing the invoice-level differences and the reason for each. A satisfactory reply closes the matter in ASMT-12; silence produces a section 73 or 74A notice.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
1,027 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(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 1 [or section 74A].
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
Periyasamy Karthikeyan v. The State Tax Officer
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SMT. THANUJA GURUPRASAD RAO, v. COMMERCIAL TAXES OFFICER,
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SMT. THANUJA GURUPRASAD RAO v. COMMERCIAL TAXES OFFICER
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M/S VASUDEV ENTERPRISES v. THE COMMERCIAL TAX OFFICER
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Tvl. K.S. Granite v. Assistant Commissioner (st)
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TVL. K.S GRANITE v. ASSISTANT COMMISSIONER (ST)
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SRI SAI DURGA AUTOMOBILES v. The Assistant Commissioner (ST)
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SRI SAIDURGA AUTOMOBILES v. The Assistant Commissioner (ST)
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2 more on record. Search all GST case law →
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
date not stated · Inserted
Inserted by section 129 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
Read this with
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Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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