An explanation of Clause 42(a) and (b) of Form 3CD

An explanation of Clause 42(a) and (b) of Form 3CD:

Clause 42(a) of Form 3CD asks the auditor to report whether the assessee is required to furnish a statement in Form No. 61, Form No. 61A, or Form No. 61B.

Form No. 61 is a statement of inward supplies made by a registered person.

Form No. 61A is a statement of outward supplies made by a registered person.

Form No. 61B is a statement of inward supplies made by a person who is not registered under the GST Act.

The assessee is required to furnish a statement in Form No. 61, Form No. 61A, or Form No. 61B if they are a registered person under the GST Act and have made any inward or outward supplies.

Clause 42(b) of Form 3CD asks the auditor to furnish the following information if the assessee is required to furnish a statement in Form No. 61, Form No. 61A, or Form No. 61B:

• The Income Tax Department
• The Reporting Entity Identification Number (REINT) of the assessee
• The type of form that was furnished
• The due date for furnishing the form
• The date on which the form was furnished, if applicable
• Whether the form contains information about all the details/furnished transactions that are required to be reported
• If not, a list of the details/transactions that are not reported

The auditor is required to comment on whether the form contains information about all the details/furnished transactions that are required to be reported. If the auditor finds that the form does not contain information about all the details/furnished transactions that are required to be reported, they must provide a list of the details/transactions that are not reported.

Conclusion

Clause 42(a) and (b) of Form 3CD are important provisions that help to ensure that taxpayers are complying with their GST reporting obligations. By requiring auditors to report whether the assessee is required to furnish a statement in Form No. 61, Form No. 61A, or Form No. 61B, and whether the form contains information about all the details/furnished transactions that are required to be reported, the government can help to ensure that taxpayers are not evading taxes.