Maharashtra, Telangana Issue Guidelines On Return Scrutiny And Refunds Under GST: EY Analysis

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EY Update

This tax alert summarises recent guidelines issued by the Maharashtra and Telangana State Governments on scrutiny of return and refund related issues under Goods and Services Tax.

The Maharashtra Government has issued guidelines for scrutiny of GST returns for financial year 2017-18 and 2018-191. It addresses several issues such as incorrect reporting of transactions or typographical errors in GSTR-1, mismatch of input tax credit between GSTR-3B and GSTR-2A in specific scenarios, reversal of ineligible ITC in return of subsequent period etc.

Further, the commercial taxes department of Telangana has issued a circular providing instructions to proper officers on several refund related issues. The officers are instructed to verify refund claims thoroughly and pass the order within the prescribed time limits to curtail erroneous refunds and interest on delay in refunds.

They have also been instructed to process and sanction refund claims keeping in view the provisions of GST law and ensure that the necessary documents are obtained and verified while processing refund claims.

The guidelines relating to scrutiny of returns provides clarity on several issues for the financial years 2017-18 and 2018-19. This is likely to benefit taxpayers in maintaining proper documentation and help in reducing litigation.

It is expected that the tax officers may follow these clarifications even for the subsequent financial years.

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EY Update State Governments Of Maharashtra and Telangana Issue Guidelines On Return Scrutiny and Refunds Under GST.pdf

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