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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

A Joint Commissioner has reason to believe that a transporter is keeping goods that have escaped payment of tax. Which course is correct under section 67 of the CGST Act, 2017?

The Joint Commissioner may authorise another central tax officer in writing to inspect the transporter's places of business. Section 67(1)(b) extends inspection to transporters, warehouse owners and operators who keep goods that escaped tax. The authorisation must be in writing and no Magistrate permission is needed.

  1. AAny inspector may inspect the transporter's premises on his own
  2. BThe Joint Commissioner may authorise in writing another central tax officer to inspect the transporter's places of businessCorrect
  3. CInspection is allowed only of a registered taxable person's premises, not a transporter's
  4. DInspection requires prior permission from a Magistrate

Explanation

Section 67(1)(b) covers persons engaged in transporting goods, and owners or operators of warehouses or godowns, who keep goods that escaped tax. The proper officer, not below Joint Commissioner, may authorise in writing another central tax officer to inspect their places of business. No Magistrate permission is needed.

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