Author: admin_gst

What are the safeguards provided in GST Act(s) in respect of Search or Seizure?
Question 17
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. What are the safeguards provided in GST Act(s) in respect of Search or Seizure?
Ans. Certain safeguards are provided in section 67 of CGST/SGST Act in respect of the power of search or seizure. These are as follows:
i. Seized goods or documents should n o t be retained beyond the period necessary for their examination;
ii. Photocopies of the documents can be taken by the person from whose custody documents are seized;
iii. For seized goods, if a notice is not issued within six months of its seizure, goods shall be returned to the perso

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What is the distinction in law between ‘Seizure’ and ‘Detention’?
Question 16
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. What is the distinction in law between 'Seizure' and 'Detention'?
Ans. Denial of access to the owner of the property or the person who possesses the property at a particular point of time by a legal order/notice is called detention. Seizure is taking over of actual possession of the goods by the depar

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Does GST Act(s) have any power of detention of goods and conveyances?
Question 15
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. Does GST Act(s) have any power of detention of goods and conveyances?
Ans. Yes, under Section 129 of CGST/SGST Act, an officer has power to detain goods along with the conveyance (like a truck or other types of vehicle) transporting the goods. This can be done for such goods which are being transported or

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What is meant by the term ‘Seizure’?
Question 14
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. What is meant by the term 'Seizure'?
Ans. The term 'seizure' has not been specifically defined in the Model GST Law. In Law Lexicon Dictionary, 'seizure' is defined as the act of taking possession of property by an officer under legal process. It generally implies taking possession forcibly contrary to the wishes of the owner of the

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Can a CGST/SGST officer access business premises under any other circumstances?
Question 13
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. Can a CGST/SGST officer access business premises under any other circumstances?
Ans. Yes. Access can also be obtained in terms of Section 65 of CGST/SGST Act. This provision of law is meant to allow an audit party of CGST/SGST or C&AG or a cost accountant or chartered accountant nominated under

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What are the basic requirements to be observed during Search operations?
Question 12
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. What are the basic requirements to be observed during Search operations?
Ans. The following principles should be observed during Search:
• No search of premises should be carried out without a valid search warrant issued by the proper officer.
• There should invariably be a lady officer accompanying the search team to residence.
• The officers before starting the search should disclose their identity by showing their identity cards to the person in-charge of the premises.
• The search warrant should be executed before t

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l search to the person in-charge of the premises being searched. Similarly, after the completion of search all the officers and the witnesses should again offer themselves for their personal search.
• A Panchnama / Mahazar of the proceedings of the search should necessarily be prepared on the spot. A list of all goods, documents recovered and seized/detained should be prepared and annexed to the Panchnama/Mahazar. The Panchnama / Mahazar and the list of goods/ documents seized/detained should invariably be signed by the witnesses , the in -charge/ owner of the premises before whom the search is conducted and also by the officer(s) duly authorized for conducting the search.
• After the search is over, the search warrant duly ex

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What is the procedure for conducting search?
Question 11
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. What is the procedure for conducting search?
Ans. Section 67(10) of CGST/SGST Act prescribes that searches must be carried out in accordance with the provisions of Code of Criminal Procedure, 1973. Section 100 of the Code of Criminal Procedure describes the procedure for search.
–
Statute, statutory provisions legislation,

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What powers can be exercised by an officer during valid search?
Question 10
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. What powers can be exercised by an officer during valid search?
Ans. An officer carrying out a search has the power to search for and seize goods (which are liable to confiscation) and documents, books or things (relevant for any proceedings under CGST/SGST Act) from the premises searched. During search, the of

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When does goods become liable to confiscation under the provisions of CGST/SGST Act?
Question 9
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. When does goods become liable to confiscation under the provisions of CGST/SGST Act?
Ans. As per section 130 of SGST/SGST Act, goods become liable to confiscation when any person does the following:
(i) supplies or receives any goods in contravention of any of the provisions of this Act or r

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What is a Search Warrant and what are its contents?
Question 8
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. What is a Search Warrant and what are its contents?
Ans. The written authority to conduct search is generally called search warrant. The competent authority to issue search warrant is an officer of the rank of Joint Commissioner or above. A search warrant must indicate the existence of a reasonable belief leading to the sear

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Is it mandatory that such ‘reasons to believe’ has to be recorded in writing by the proper officer, before issuing authorization for Inspection or Search and Seizure?
Question 7
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. Is it mandatory that such 'reasons to believe' has to be recorded in writing by the proper officer, before issuing authorization for Inspection or Search and Seizure?
Ans. Although the officer is not require

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What is meant by ‘reasons to believe’?
Question 6
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. What is meant by 'reasons to believe'?
Ans. Reason to believe is to have knowledge of facts which, although not amounting to direct knowledge, would cause a reasonable person, knowing the same facts, to reasonably conclude the same thing. As per Section 26 of the IPC, 1860, “A person is said to have 'reason to believe' a thing, if he

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Who can order for Search and Seizure under the provisions of CGST Act?
Question 5
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. Who can order for Search and Seizure under the provisions of CGST Act?
Ans. An officer of the rank of Joint Commissioner or above can authorize an officer in writing to carry out search and seize goods, documents, books or things. Such authorization can be given only where the Joint Commissioner has reason

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Can the proper officer authorize Inspection of any assets/premises of any person under this Section?
Question 4
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. Can the proper officer authorize Inspection of any assets/premises of any person under this Section?
Ans. No. Authorization can be given to an officer of CGST/ SGST to carry out inspection of any of the following:
i. any place of business of a taxable person;
ii. any place

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Who can order for carrying out “Inspection” and under what circumstances?
Question 3
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. Who can order for carrying out “Inspection” and under what circumstances?
Ans. As per Section 67 of CGST/SGST Act, Inspection can be carried out by an officer of CGST/SGST only upon a written authorization given by an officer of the rank of Joint Commissioner or above. A Joint Commissioner or an off

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What is the meaning of the term “Inspection”?
Question 2
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. What is the meaning of the term “Inspection”?
Ans. 'Inspection' is a new provision under the CGST/SGST Act. It is a softer provision than search to enable officers to access any place of business of a taxable person and also any place of business of a person engaged in transporting goods or who is an owner or an operator of a

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What is the meaning of the term “Search”?
Question 1
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
19. Inspection, Search, Seizure and Arrest
Q 1. What is the meaning of the term “Search”?
Ans. As per law dictionary and as noted in different judicial pronouncements, the term 'search', in simple language, denotes an action of a government machinery to go, look through or examine carefully a place, area, person, object etc. in order

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Settlement Commission [Omitted]
Question 1
Bill
Settlement Commission [Omitted]
Faq On GST (2nd Edition) Dated 31.3.2017
18. Settlement Commission [Omitted]
Omitted as the chapter

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Can the AAR & AAAR order for rectification of mistakes in the ruling?
Question 20
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. Can the AAR & AAAR order for rectification of mistakes in the ruling?
Ans. Yes, AAR and AAAR have power to amend their order to rectify any mistake apparent from the record within a period of six months from the date of the order. Such mistake may be noticed by the authority on its own accord or may be brought to its notice by the

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Whether Appeal can be filed before High Court or Supreme Court against the ruling of Appellate Authority for Advance Rulings?
Question 19
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. Whether Appeal can be filed before High Court or Supreme Court against the ruling of Appellate Authority for Advance Rulings?
Ans The CGST /SGST Act do not provide for any appeal against the ruling of Appellate Authority for Advance Rulings. Thus no further appeals lie and th

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What are the provisions for appeals against order of AAR?
Question 18
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. What are the provisions for appeals against order of AAR?
Ans. The provisions of appeal before AAAR are dealt in section 100 and 101 of CGST/SGST Act or section 14 of the UTGST Act.
If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. Similarly, if the concerned or jurisdictional officer of CGST/SGST/UTGST does not agree with the finding of AAR, he can also file an appeal with AAAR. The word concerned officer of CGST/SGST means an officer who has been designated by the CGST/SGST administration in regard to an application for advance ruling. In nor

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What happens if there is a difference of opinion amongst members of AAR?
Question 17
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. What happens if there is a difference of opinion amongst members of AAR?
Ans. If there is difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the point

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What is the procedure to be followed by AAR once the application is admitted?
Question 16
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. What is the procedure to be followed by AAR once the application is admitted?
Ans. If the application is admitted, the AAR shall pronounce its ruling within ninety days of receipt of application. Before giving its ruling, it shall examine the application and any further material furnished by the applicant or by the concern

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Under what circumstances will the application for Advance Ruling be compulsorily rejected?
Question 15
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. Under what circumstances will the application for Advance Ruling be compulsorily rejected?
Ans. Application has to be rejected if the question raised in the application is already pending or decided in any proceedings in the case of applicant under any of the provisions of GST Act(s). If the application is rej

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What is the procedure for obtaining Advance Ruling?
Question 14
Bill
Advance Ruling
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. What is the procedure for obtaining Advance Ruling?
Ans. Section 97 and 98 deals with procedure for obtaining advance ruling. Section 97 provides that the applicant desirous of obtaining advance ruling should make application to AAR in a prescribed form and manner. The format of the form and the detailed procedure for making application will be pre

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