Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 61, verbatim (show)
Section 61
* Section 61. Scrutiny of returns.-
(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].
*Enforced w.e.f. 1st July, 2017.
1. Inserted by section 129 of The Finance Act (No. 2) Act, 2024 No. 15 of 2024 dated 16.08.2024.
Questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
The scrutiny and the discrepancies 61(1)
Questions to answer on the file7 questions
The explanation found acceptable 61(2)
Questions to answer on the file3 questions
The failure to explain or to correct 61(3) opening words
Questions to answer on the file9 questions
The action the proper officer may initiate 61(3) closing words
Questions to answer on the file4 questions
Amendment history
The CBIC text carries 2 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| Enforced the section. | — | 1st July, 2017 | |
| 1 | Inserted the words "or section 74A" at the end of sub-section (3). | section 129 of The Finance Act (No. 2) Act, 2024, No. 15 of 2024, dated 16.08.2024[2] | the source's footnote gives no effective date for the insertion; the date shown is the date of the amending Act |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Rule 99 of the CGST Rules, 2017 | this provision prescribed by rule 99 of the CGST Rules 2017 | 61(1) "inform him of the discrepancies noticed, if any, in such manner as may be prescribed" |
| Section 65 | 61(3) requires Section 65 | 61(3) "may initiate appropriate action including those under section 65" |
| Section 66 | 61(3) requires Section 66 | 61(3) "or section 66" |
| Section 67 | 61(3) requires Section 67 | 61(3) "or section 67" |
| Section 73 | 61(3) requires Section 73 | 61(3) "proceed to determine the tax and other dues under section 73" |
| Section 74 | 61(3) requires Section 74 | 61(3) "or section 74" |
| Section 74A | 61(3) requires Section 74A | 61(3) "1[or section 74A]" |
| Section 39 | this provision requires Section 39 | 61(1) "scrutinize the return and related particulars furnished by the registered person" |
| Section 2 | this provision defined by Section 2 clause (91) | s.2(91) "proper officer... means the Commissioner or the officer of the central tax who is assigned that function" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (1)
| Number | Date | Subject |
|---|---|---|
| Circular No. 3/03/2017-GST | 5 July 2017 | Proper officer relating to provisions other than Registration and Composition under the Central Goods and Services Tax Act, 2017-Reg. |
Notifications (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 10/2017-Central Tax | 28 June 2017 | Seeks to amend CGST Rules notification no 3/2017-Central Tax dt 19.06.2017 amended by a later instrument |
Unsettled questions
The words of section 61 do not answer these questions. Where one decides a matter on the file, the answer depends on the position taken on it.
- From what date does the reference to section 74A, inserted into section 61(3) by section 129 and into section 62(1) by section 130 of the Finance (No. 2) Act, 2024, apply? The source's footnotes give the amending Act and its date of 16.08.2024 and no commencement date for either insertion.
- How far does "no further action shall be taken in this regard" reach: does it bar only further action on the scrutiny of that return, or also an audit, an inspection or a determination of tax under sections 65 to 67 and 73, 74 or 74A on the same discrepancy? Sub-section (2) fixes no boundary for "in this regard".
See also
- Section 65 of the CGST Act, 2017: audit by tax authorities
- Section 66 of the CGST Act, 2017: special audit
- Section 67 of the CGST Act, 2017: power of inspection, search and seizure
- Section 74A of the CGST Act, 2017: 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
References
- Central Board of Indirect Taxes and Customs. "Section 61. Scrutiny of returns". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 2. Retrieved 17 September 2026.
- The Finance Act (No. 2) Act, 2024. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Section 61 on the CBIC tax information portal