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CA Final · Indirect Tax Laws · Charge of GST

A truck carrying goods is intercepted by the proper officer, and the taxable person to whom the supply pertains cannot be ascertained. Acting on evidence of tax liability, with prior permission of the Additional Commissioner or Joint Commissioner, the officer proceeds under summary assessment in section 64 to protect revenue. Who is deemed liable to be assessed and to pay the tax?

The person in charge of the goods is deemed to be the taxable person. Under the proviso to section 64(1), where the taxable person is not ascertainable and the liability relates to supply of goods, that person is liable to be assessed and to pay the tax and other amounts due.

  1. AThe person in charge of the goods, since the liability pertains to supply of goodsCorrect
  2. BThe owner of the conveyance regardless of who is in charge of the goods
  3. CThe Commissioner who gave permission
  4. DNo one, since assessment requires an ascertainable taxable person

Explanation

The proviso to section 64(1) says that where the taxable person is not ascertainable and the liability pertains to supply of goods, the person in charge of such goods is deemed the taxable person liable to be assessed and to pay tax and other amounts. Hence assessment is not barred by non-ascertainability.

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