Essential Protocols for GST Search and Inspection

The mismatch between GSTR-1, 3B, or 2A is now addressed through DRC-01B and DRC-01C...Giving us some spare time to read the law once again.

The imperative question is, Are we adequately prepared for the impending legal disputes?

The law inherently provides solutions within its framework. Instead of crafting lengthy responses to notices, it is crucial to comprehend the essence of the notices and align them with the provisions of the law.

Furthermore, establishing a mindset that balances the relationship between the government and businessmen by ensuring careful scrutiny of the actions of revenue officers is essential. While no government intends to harass businessmen, certain officers might deviate.

Our role is not to tarnish anyone's reputation but to handle litigation to the best of our expertise.

Returning to the topic of "INSPECTION AND SEARCH," Section 67 combined with Rule 139 specifies the circumstances that may warrant inspection or search in GST law, including:

A. For a taxable person:

• Suppression of transactions related to the supply of goods and/or services.
• Suppression of transactions involving the stock of goods in possession.
• Overclaiming of input tax credits or refunds beyond the entitlement under the Act.
• Non-compliance with the provisions of this Act or its rules to evade tax.

B. For Transporters or Godown Owners/Operators:

• Engaging in the transportation of untaxed goods.
• Owning or operating warehouses where untaxed goods are stored.
• Maintaining accounts or goods in a manner that could lead to tax evasion.

C. Concealment of goods liable for confiscation or relevant documents in business or residential premises.

Key considerations for both parties:

For Assessees:

• Verification of ID and INS-01 before initiating the search.
• Limiting the search to the areas specified in INS-01.
• Ensuring proper authorization in Part C of INS-01 pursuant to the inspection since a search cannot occur without inspection.
• Noting that spot recovery provision is absent in the law. If payment is made via DRC-03, a refund application may be promptly filed after the search.

For Revenue Officers:

• Strict adherence to CBIC Instruction 1/2020-21 (F.No .GST/INV/DGOV Reference/20-21) dated 2 Feb 2021.
• Acquisition of INS-01 (A, B, or C) as necessary.
• Maintaining a professional demeanor, acknowledging that GST officers are not police officers.

Conclusion and Assistance Offered

At TaxTru, our dedicated team of professionals is committed to addressing your business's unique needs and ensuring compliance with all relevant tax regulations. From managing routine compliance matters to providing comprehensive solutions for litigation management, we are here to support your business at every step. If you require assistance or have any indirect tax-related concerns, please do not hesitate to contact us at 9953357935 or via email at [email protected] .