GST scrutiny is a process where tax authorities examine GST returns and other relevant documents to ensure compliance. It helps detect discrepancies, errors, or possible tax evasion. The scrutiny is conducted as per Section 61 of the CGST Act, 2017. Authorities compare filed returns with available data to identify mismatches. Notices are issued to taxpayers if inconsistencies are found. Taxpayers must respond to scrutiny notices within the prescribed time. If discrepancies are explained satisfactorily, no further action is taken. Failure to respond may lead to further investigation or audits. Common issues flagged include input tax credit (ITC) mismatches, underreporting of sales, and tax payment shortfalls. Authorities may seek additional documents like invoices, ledgers, and reconciliations. Taxpayers can correct mistakes and pay any due tax with interest to avoid penalties. If non-compliance persists, authorities can initiate a GST audit or enforcement action. Automated tools and data analytics help in identifying high-risk cases. GST scrutiny ensures transparency and compliance with tax laws. It prevents fraudulent ITC claims and revenue leakage. Regular scrutiny strengthens the overall GST system and tax administration. Businesses should maintain proper records and reconcile returns periodically. GSTR-1 and GSTR-3B mismatches are common reasons for scrutiny notices. Differences between e-way bills and filed returns can trigger scrutiny. Authorities may also scrutinize GST refund claims for possible irregularities. Proactive compliance can help businesses avoid scrutiny-related complications. Consulting tax professionals can assist in handling scrutiny proceedings effectively. Businesses should verify input tax credit claims against GSTR-2B to avoid mismatches. Responding accurately and on time to scrutiny notices is crucial. Voluntary rectification of errors before scrutiny can prevent penalties. GST scrutiny is different from GST audit, which is a more detailed examination. The government uses artificial intelligence to track potential GST fraud. Proper invoicing and record-keeping can reduce the chances of scrutiny. Businesses should regularly reconcile their tax data with suppliers and customers. Periodic internal reviews can help in identifying and rectifying errors early. Understanding GST scrutiny helps businesses stay compliant and avoid legal risks.