Inspection, searching, and seizure under GST often leave individuals and businesses with many questions. Common concerns include the circumstances that allow such practices and the process and procedure that must be followed during an inspection or search. It is also important to understand what non-compliance can lead to, such as penalties or the seizure of goods. Knowing the answers to these FAQs helps ensure compliance and safeguards against rights violations.
When a proper officer has a reason to believe that the taxable person has suppressed any transaction relating to supply of goods and services or both with an intent to evade tax. The proper officer may initiate search or investigation at the place of business of taxpayer.
The proper officer will give an order of seizure in FORM GST INS-02.
A bond is required to be executed for provisional release of such goods seized. Such bond is required to be furnished via form GST INS-04.
In security of such goods released on provisional basis, a bank guarantee equivalent to amount of applicable tax, interest and penalty payable shall be furnished along with the bond.
Yes, if the seized goods are of perishable and hazardous nature. The taxpayer is required to pay lower of below
(a) An amount equivalent to market price of such seized goods.
(b) An amount of tax, interest and penalty payable by such taxable person.
The goods shall be released by showing the proof of payment by passing the order in form GST INS-05.
The officer authorized to search will have the power to seal the door of the premises. He can also break open the door of any premises if access is denied. He can also break open any cupboard or box in which goods, books, documents etc. are suspected to be concealed. However above actions will be necessitated if there is gross non cooperation by the taxpayer.