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

Which statement about the application of CGST provisions on offences, penalties, and search and seizure to inter-State supplies is correct?

The IGST Act applies the CGST provisions on inspection, search, seizure and arrest, and on offences and penalties, mutatis mutandis to integrated tax. Section 20 of the IGST Act lists both heads expressly, so neither is excluded for inter-State supplies.

  1. AThe IGST Act has no provisions; only the SGST Act applies
  2. BThe IGST Act applies the CGST provisions on inspection, search, seizure and arrest, and offences and penalties, mutatis mutandis to integrated taxCorrect
  3. CThe IGST Act applies CGST provisions on offences but not on inspection or search
  4. DThe IGST Act applies CGST provisions only on penalties, not on prosecution

Explanation

IGST section 20 lists inspection, search, seizure and arrest, and offences and penalties among the CGST provisions that apply mutatis mutandis to integrated tax. So both are covered, not just penalties. Where penalty is leviable under both CGST and SGST/UTGST Acts, the IGST penalty is the sum total of those penalties.

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