Scrutiny of returns
Commencement. 22nd June, 2017 for sections 1, 2, 3, 4, 5, 10, 22, 23, 24, 25, 26, 27, 28, 29, 30, 139, 146 and 164 1st July, 2017 for sections 6 to 9, 11 to 21, 31 to 41, 42 (except proviso to sub-section (9) of S 42), 43 (except proviso to subsection (9) of S 43), 44 to 50, 53 to 138, 140 to 163, 165 to 174.
Section 61 of the Central Goods and Services Tax Act, 2017 deals with scrutiny of returns. 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. The Act was enacted on 12 Apr 2017.
(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 741[or section 74A].
Section 61, The Central Goods and Services Tax Act, 2017 (Act 12 of 2017).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 65 Audit by tax authorities
- s. 66 Special audit
- s. 67 Power of inspection, search and seizure
- s. 73 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts
- s. 74 Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful-misstatement or suppression of facts
- s. 74A Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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M/s Sai Sitaram Construction v. Joint Commissioner of CT & GST
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 11.08.2025 (order-2.pdf): DB set aside a second s.61→s.73 demand that double-counted a prior period already covered; remitted for adjudication confined to the uncovered Oct–Mar slice only.
On this section: s.61 scrutiny cannot be used to reopen and double-demand a tax period already settled; scrutiny-to-demand chain must respect period integrity.
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Kamdhenu Udyog P Ltd. v. Deputy Commissioner of Revenue, Bhabanipur Charge
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 12.06.2025 (order-1.pdf): Court held that an inadvertent wrong tax period in a voluntary DRC-03 ITC reversal after ASMT-10 (s.61) scrutiny is correctable; set aside consequential s.73 demand and s.107 appellate order and quashed s.79 recovery.
On this section: s.61 ASMT-10 scrutiny responses (including DRC-03) can be corrected for bona fide tax-period errors before treating the assessee as defaulting for demand/recovery.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 61
What have the courts held on Section 61 of the Central Goods and Services Tax Act?
M/s Sai Sitaram Construction v. Joint Commissioner of CT & GST (11 Aug 2025) is the leading judgment on this section among those set out below: s.61 scrutiny cannot be used to reopen and double-demand a tax period already settled; scrutiny-to-demand chain must respect period integrity. Another 1 judgment on this section is set out below.
How do I find court cases under Section 61 of the Central Goods and Services Tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CGST Act 61, section 61 CGST Act, section 61 of the Central Goods and Services Tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with M/s Sai Sitaram Construction v. Joint Commissioner of CT & GST (11 Aug 2025).
What should I read with Section 61 of the Central Goods and Services Tax Act, and has it changed?
Its own text turns on section 65 (Audit by tax authorities), section 66 (Special audit), section 67 (Power of inspection, search and seizure), section 73 (Determination of tax, pertaining to the period up to Financial Year 2023-24, not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts), and on 2 further provisions, so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. One instrument names it without being made under it, most recently Circular No. 3/3/2017 - GST dated 05.07.2017 (2017).
When was Section 61 of the Central Goods and Services Tax Act enacted?
Section 61 of the Central Goods and Services Tax Act, cited as CGST Act 61, was enacted on 12 Apr 2017 as Act 12 of 2017. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5109 words
- 142. Miscellaneous transitional provisions1966 words
- 140. Transitional arrangements for input tax credit1883 words
- 54. Refund of tax1858 words
- 110. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc1647 words
- 74A. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward1299 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.