Goods and Services Tax – GST – By: – AttnVivek Jalan – Dated:- 28-11-2018 – It is seen in many states that GST Officials are visiting clients premises by invoking Sec 67(1) of The CGST Act 2017 on Inspection. Many of these are Multinational Companies located in various countries of the globe and doing business in India from the past many years and are registered in multi states in India. In the state where such inspections are happening itself they are doing business since last many many years. Lets discuss on how to handle such Inspections by the Government officials through a 6 Step Process – Please check the GST-INS 01 with the notified form and whether the tick boxes to declare exceptional circumstances for reasons to believe are there
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reby provide a draft of submission of Objections and Protest against the arbitrary action of Inspection at the assesses place – First state that you responsible and law abiding Corporate citizens, using reliable ERP Systems and having transparent Accounting and Taxation practices. State also about the various states and countries in which you are doing business. Object and protest against such arbitrary Investigation carried out without any prior notice at the premises. State that Sec 67(1) read with Rule 139(1) and CBIC s Flyer make it abundantly clear that Inspection can be carried out only after fulfilling the following conditions – 1. Inspection can be carried out only in exceptional circumstances of suppression, evasion, contravention
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le event of suppression, evasion, contravention or manipulation which was unearthed during such investigation. Such inspection was not carried out as a Last resort . Invoking of Inspection as the Last Resort implies that the assessee has failed the tests of inquiry and thus as a last resort investigation is resorted to. There was no reason to believe any act of suppression, evasion, contravention or manipulation – In Income Tax Officer v. Lakhmani Mewaldas 1976 (3) TMI 1 – SUPREME COURT , the Supreme Court held that there should be a live link or close nexus, between the material before the ITO and the formation of his belief that income had escaped assessment. The assese s rights guaranteed under Article 14, 19 and 301 of The Constitution
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