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

Under Section 67 of the CGST Act, 2017, who can form the 'reasons to believe' that triggers authorisation of an inspection of a taxable person's place of business?

The reasons to believe must be formed by the proper officer not below the rank of Joint Commissioner. That officer then authorises in writing another central tax officer to carry out the inspection of the business premises, so a junior officer cannot initiate it on his own.

  1. AAny officer of central tax, without any rank requirement
  2. BThe proper officer, not below the rank of Joint CommissionerCorrect
  3. COnly the Commissioner of the State GST department
  4. DOnly a Magistrate on application by the department

Explanation

Section 67(1) empowers the proper officer, not below the rank of Joint Commissioner, who has reasons to believe that a taxable person has suppressed transactions or stock or claimed excess input tax credit, to authorise in writing another central tax officer to inspect. A junior officer cannot form this belief for authorisation, and no Magistrate is involved.

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