M/s Abc Pvt ltd

xxxxxxx

To
The Assistant Commissioner
Date: 21.03.2025
Sub:- Reply to the notice of Form GST Asmt-10 Ref. No. –xxxxxx dt.
12/03/2025

Dear sir , I xxxx Director of M/s Abc Pvt Ltd GSTIN -xxxxxxx (xxxxxxx) furnished
my reply below.

Brief of the Case:

The case concerns a GST Scrutiny Notice (Form GST ASMT-10) issued to M/s abc Pvt. Ltd.
by the Deputy Commissioner, Commercial Tax, , Ghaziabad under Section 61 of the
UPGST/CGST/IGST Act, 2017 for the tax period January 2025 (FY 2024-25).

Issue Identified:

 A discrepancy was found between the outward supply reported in GSTR-3B and e-
way bill (EWB) data:
o Outward Supply as per GSTR-3B: ₹22,79,795.09
o Outward Supply as per EWB: ₹4,10,11,026
o Difference: ₹3,87,31,231

 The department observed that IGST was not paid on the unreported outward supply

Statement of the case

The difference in the outward supply reported in GSTR-3B and e-
way bill data arises due to the nature of our business operations,
which involve both the sale of goods and the provision of services.
It is important to note that e-way bills are not required for the
supply of services. The reconciliation of outward supply for January
2025 (FY 2024-25) is provided in the table below for better
understanding:
Reconciliation of Outward Supply for January 2025 (FY 2024-25)
 M/s Abc Pvt ltd
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Reconciliation of outward supply

for the month jan 2025 ( fy 2024-25)

sl. No Particluar GTSR3B GSTR1 E way bill Diff

1 sales of goods 464395 464395 448395
2 sales of services 1815400.09 1815400.09
E-way bill is generated only for machines or tools sent
after repair through a delivery challan, not for sale, as
these machines were already sold in a previous month. 40562631
Total 2279795.09 2279795.09 41011026 -38731231

Clarifications on the Difference:

1. Outward Supply of Goods:
o The sales of goods have been correctly reported in both GSTR-
1 and GSTR-3B.
o E-way bills were generated for the supply of goods, and
copies of relevant sales invoices along with e-way bills are
attached for verification.
2. Outward Supply of Services:
o The sales of services have been correctly reported in GSTR-1
and GSTR-3B.
o Since e-way bills are not required for service transactions,
there is no corresponding e-way bill data for these
transactions.
3. Machines/Tools Sent After Repair (Previously Sold):
o The e-way bills amounting to ₹4,05,62,631 pertain to
machines/tools sent after repair through delivery challans, not
fresh sales.
o These machines/tools were originally sold in a previous tax
period and were already reported in the respective GSTR-1
and GSTR-3B filings, with tax duly paid.
 M/s Abc Pvt ltd
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o The movement of repaired machines/tools does not constitute
a taxable outward supply, hence no additional IGST liability
arises.
o Copies of the previous months' GSTR-1, GSTR-3B, and invoices
are attached as supporting documents.

Grounds of the Case

1. No Additional Outward Supply:
o The difference in the outward supply figures arises due to the
movement of machines/tools after repair, which were
originally sold in a previous tax period.
o These movements are made under a delivery challan and do
not constitute fresh sales; hence, they do not attract
additional GST liability.
2. Tax Already Paid on the Machines/Tools:
o The machines/tools in question were already reported in the
relevant GSTR-1 and GSTR-3B filings at the time of their
original sale.
o GST has been duly paid in the corresponding tax periods, and
no new tax obligation arises from their subsequent movement
for repairs.
3. Compliance with E-Way Bill Rules:
o As per GST provisions, an e-way bill is required for the
movement of goods but not for services.
o The e-way bills generated for ₹4,05,62,631 are for the
movement of repaired machines/tools and not for any taxable
supply.
4. Supporting Documentation Provided:
o Copies of previous months' GSTR-1, GSTR-3B, and relevant
invoices are enclosed to substantiate that the outward
supplies were already reported, and tax was paid.
 M/s Abc Pvt ltd
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o This confirms that there is no suppression of sales or tax
evasion.
5. No Liability for Additional IGST Payment:
o Since the movement of goods after repair does not qualify as
a fresh outward supply, no IGST liability arises.
o The alleged difference is due to accounting treatment and
procedural requirements, not due to an unreported taxable
transaction.

Relevant Case Laws Supporting the Case

To strengthen our response, we refer to the following case laws and
legal provisions that align with our position:
1. M/S Thermo Fisher Scientific India Pvt. Ltd. vs. Union of India (2021-
TIOL-1717-HC-MUM-GST)
o Key Finding: The Hon'ble Bombay High Court held that the
mere movement of goods under a delivery challan for repair
does not constitute a supply under GST. Tax liability does not
arise unless there is a transfer of ownership or a fresh supply.
o Relevance to Our Case: Since the movement of machines/tools
after repair is under a delivery challan and does not involve
fresh sales, no additional GST liability arises.
2. In Re: M/s Bharat Heavy Electricals Ltd. (2020) 114 taxmann.com
184 (AAR - Karnataka)
o Key Finding: The AAR ruled that the movement of goods for
repair purposes without a transfer of title does not attract
GST. The issuance of an e-way bill for such movements does
not create a taxable outward supply obligation.
o Relevance to Our Case: The e-way bill generated for
₹4,05,62,631 pertains to repaired machines/tools that were
originally sold in previous tax periods. This movement is not
 M/s Abc Pvt ltd
xxxxxxx
an outward supply and, therefore, does not attract GST.
3. Circular No. 76/50/2018-GST dated 31.12.2018 issued by CBIC
o Key Provision: It clarifies that the movement of goods under a
delivery challan (such as goods sent for repair and return)
does not constitute a taxable supply.
o Relevance to Our Case: The department's observation
regarding IGST liability is misplaced, as the movement of
repaired goods was correctly done under a delivery challan as
per GST regulations.
4. Section 7 of the CGST Act, 2017 - Scope of Supply
o Key Provision: Defines "supply" as a transaction that involves
the transfer of goods/services for consideration. Movement of
goods without consideration (such as repairs) does not qualify
as a supply.
o Relevance to Our Case: Since the repaired machines/tools
were originally sold earlier and their movement does not
involve fresh consideration, it does not fall under the scope of
taxable supply.

Prayer
In light of the above facts, clarifications, and legal precedents, we
respectfully submit the following prayer:
1. That the alleged difference in outward supply between GSTR-3B and
e-way bill data is due to the movement of machines/tools after
repair, which does not constitute a fresh taxable supply.
2. That no additional IGST liability arises as the machines/tools were
originally sold in previous tax periods, and tax was duly paid at the
time of sale.
3. That the movement of repaired goods was done under a delivery
challan in compliance with GST provisions, as clarified in CBIC
 M/s Abc Pvt ltd
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Circular No. 76/50/2018-GST.
4. That the scrutiny notice issued under Form GST ASMT-10 be
dropped as there is no case of tax evasion or underreporting of
outward supply.
5. That any further queries, if required, may be kindly sought from us,
and we shall provide any additional clarifications or documents as
necessary.
6. That the department may kindly accept our reply and close the
proceedings without imposing any tax, penalty, or interest.
We humbly request your kind consideration and favorable order in
this matter.

Sincerely.

For M/s GEO INFORMATICS

CONSULTANTS PVT LTD

(xxxxx)
Direct
or