Skip to content

CA Final · Indirect Tax Laws · Charge of GST

A truck carrying goods without any identifiable consignor or owner is abandoned at a Nagpur checkpost; the driver says he does not know the owner. The proper officer finds evidence of tax liability and believes delay may harm revenue. Under the CGST Act, what is the correct position?

The proper officer may, with previous permission of the Additional or Joint Commissioner, issue a summary assessment order to protect revenue. Because the taxable person is not ascertainable and goods are involved, the person in charge of the goods is deemed the taxable person liable to pay.

  1. ANo assessment is possible until the owner is traced
  2. BThe proper officer, with previous permission of the Additional or Joint Commissioner, may issue a summary assessment order and the person in charge of the goods is deemed the taxable person liable to payCorrect
  3. CThe driver alone is arrested without any assessment
  4. DThe officer may assess without any permission

Explanation

Section 64(1) lets the proper officer, with previous permission of the Additional or Joint Commissioner, make a summary assessment where delay may adversely affect revenue. Its proviso says where the taxable person is not ascertainable and liability relates to supply of goods, the person in charge of the goods is deemed the taxable person. Permission is mandatory, and waiting to trace the owner is not required.

Did you get it right without looking?

One question tells you little. A timed set on Charge of GST shows your real accuracy, how long you take and where you lose marks.

Practise Charge of GSTFree diagnostic mock

More Charge of GST questions