Standardised PPT on GST Indirect Taxes Committee The Institute of Chartered Accountants of India

Disclaimer and Copy right This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at idtc@icai.in © The Institute of Chartered Accountants of India This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. © Indirect Taxes Committee, ICAI

Inspection, Search, Seizure and Arrest © Indirect Taxes Committee, ICAI

Power of Inspection, Search and Seizure – Section 67 For initiating the proceedings Joint Commissioner or any superior officer(authorization in Form GST INS-01) should have a ‘reason to believe’ that the assessee has done any of the following: suppressed any transaction of supply of goods or services or both Suppressed supply information relating to stock in hand or claimed excess input tax credit or has contravened any of the statutory provisions of this act or rules made thereunder Kept goods which have escaped payment of tax or in such a manner as likely to cause evasion Then the Proper Officer can: Inspect: any place of business of the assesse who has evaded the tax or of the transporter who transported such tax evading goods or godown / warehouse operator in which such tax evading goods or accounts relating thereto has been stored. Search and Seize: goods or any documents/books/ things are liable for confiscation and which will be instrumental in the proceedings during the enquiry period (order of seizure in Form GST INS-02) Seal or Break: open the door of any premises, storage, box or receptacle where goods, books of accounts etc. are concealed and when access to the same is denied to the said officer © Indirect Taxes Committee, ICAI

Power of Inspection, Search and Seizure – Section 67 If not practicable to seize, proper officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal. Custodian of seized documents is entitled to take photocopy or extract, in presence of an authorised officer; Seized goods shall be released on execution of bond/ furnishing security of such quantum in FORM GST INS-04 as may be prescribed or on payment of applicable tax, interest and penalty; The officer is bound to issue the notice within 6 months of such seizure else seized goods are liable to be returned competent authority may extend the notice for a further period of 6 months for sufficient causes; Disposal permitted of goods which are of perishable or hazardous nature, or of depreciating value by passage of time or there is constrained for storage immediately. Those goods or things seized of perishable or hazardous nature may be released on payment of an amount equivalent to the market price of such goods or amount of tax, interest & penalty that is or may become payable, whichever is lower. © Indirect Taxes Committee, ICAI

Power of Inspection, Search and Seizure – Section 67 Where the taxable person fails to pay the above amount in respect of the said goods or things, the Commissioner may dispose of them and the amount realized shall be adjusted against tax, interest, penalty, or any other amount payable. Proper officer to maintain inventory of Goods seized; Provisions of the Code of Criminal Procedure, 1973 relating to search and seizure apply and powers related to ‘Magistrate’ to be possessed by CGST/ SGST Principal Commissioner or Commissioner; Where proper officer has reasons to believe that any person has evaded or is attempting to evade the payment of any tax, he may, for reasons to be recorded in writing, seize the accounts, registers or documents produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary Commissioner or an officer authorised may purchase any goods and/services from business premises of any taxable person, to check issue of tax invoices/bills of supply, and on return of goods so purchased, such taxable person shall refund amount so paid. © Indirect Taxes Committee, ICAI

Power of Inspection and Arrest – Sections 68 and 69 The Central Govt or State Govt may require the person in charge of conveyance carrying any consignment of goods exceeding the specified value to carry prescribed documents which need to be produced for verification when vehicle is intercepted by Proper Officer; The person committing an offence of tax evasion or repletion of tax evasion (as provided u/s 132) may be arrested by officer on authorization from the Commissioner of CGST / SGST; The person so arrested is required to be produced before magistrate within 24 hours in case of cognizable offences; In case of non-cognizable and bailable offences the Assistant/Deputy Commissioner may grant the bail having same powers and subject to the same provisions as an officer-in-charge of a police station © Indirect Taxes Committee, ICAI

Power to issue Summon and Access to Business premises – Sections 70 and 71 If deemed fit, any person may be summoned by authorized CGST / SGST Officers either to give evidence or to produce a document or any other thing in any inquiry as considered necessary For the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue authorized CGST/ SGST Officers may access any business premises to inspect: books of a/c documents, computers, computer programs, computer software etc. and such other things as he may require and which may be available at such premises On demand by the audit officer / CA / Cost Accountant nominated by the Dept. for conducting the audit, the person needs to produce the records related to GST, trial-balance, audited financial reports, IT Reports, relevant records etc. within 15 working days from the date of demand All officers of other governmental dept. like Police, Revenue, Customs etc. are required to assist the CGST/SGST officers, if they are called upon to do so by Commissioner of CGST/SGST (sec 65) © Indirect Taxes Committee, ICAI

Thank You For any Clarification, Please Contact Indirect Taxes Committee of ICAI Email: idtc@icai.in, Website: www.idtc.icai.org © Indirect Taxes Committee, ICAI