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CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Under the CGST Act, 2017, which of the following is a power of the Commissioner or an officer authorised by him relating to checking of tax invoices?

The Commissioner or an authorised officer may cause a test purchase from the taxable person's business premises through an authorised person to check issue of tax invoices or bills of supply. On return of the goods, the supplier must refund the amount after cancelling the invoice.

  1. ATo cause purchase of goods or services from the business premises of a taxable person by an authorised person, to check issue of tax invoices or bills of supplyCorrect
  2. BTo arrest the supplier without any reason to believe
  3. CTo cancel the supplier's registration immediately on the test purchase
  4. DTo retain the purchased goods permanently without any refund

Explanation

Section 67(12) allows the Commissioner or authorised officer to cause a purchase of goods or services from a taxable person's premises through an authorised person to check invoice issue. On return of goods the taxable person must refund the amount after cancelling the invoice or bill of supply issued. The other options are not provided.

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