Provisions of Inspection, Search, Seizure and Arrest under GST

Goods and Services Tax (GST) is a comprehensive indirect tax that has replaced various indirect taxes in India. It has brought about a significant change in the way businesses are conducted in India. However, with the introduction of GST, the government has also been empowered to impose penalties and fines for non-compliance. One of the most important tools that the government has in its arsenal is the power of inspection, search, seizure, and arrest. In this article, we will take a detailed look at the provisions of inspection, search, seizure, and arrest under GST.

Inspection under GST

Inspection can be defined as an examination of a registered person's books of accounts, records, documents, and goods to verify the correctness of the returns filed and the tax paid. The GST officer is empowered to conduct an inspection of the registered person's place of business under Section 65 of the GST Act. The GST officer has to issue a notice in writing to the registered person at least 24 hours before the inspection.

The inspection can be carried out during the business hours of the registered person's place of business. However, if the officer has reasons to believe that the registered person is hiding or tampering with any records, he can carry out the inspection at any time without prior notice.

During the inspection, the GST officer can examine the books of accounts, records, documents, and goods of the registered person. The officer can also take samples of the goods for further examination. The officer has to prepare a report of the inspection within 15 days of the completion of the inspection.

Search under GST

Search can be defined as an action of entering any premises for the purpose of searching for goods, books of accounts, records, or documents that are liable to confiscation. The GST officer is empowered to conduct a search of any place of business or any other place, where he has reasons to believe that any goods or documents that are liable to confiscation are kept. The search can also be conducted on the basis of specific information received by the officer.

Before conducting the search, the GST officer has to obtain a warrant from the magistrate. However, in cases where the officer has reasons to believe that the delay caused by obtaining the warrant might lead to the destruction of evidence or the escape of the offender, he can conduct the search without a warrant. In such cases, the officer has to obtain the warrant within 24 hours of conducting the search.

During the search, the GST officer can seize any goods, books of accounts, records, or documents that are liable to confiscation. The officer has to prepare an inventory of the goods seized and give a copy of the same to the person from whose custody the goods were seized. The officer also has to issue a notice in writing to the person stating the grounds of the seizure.

Seizure under GST

Seizure can be defined as the taking of possession of any goods, books of accounts, records, or documents that are liable to confiscation. The GST officer is empowered to seize any goods, books of accounts, records, or documents that are liable to confiscation during the inspection or search under GST.

The officer has to prepare an inventory of the goods seized and give a copy of the same to the person from whose custody the goods were seized. The officer also has to issue a notice in writing to the person stating the grounds of the seizure.

Arrest under GST

Arrest can be defined as the apprehension of a person by a GST officer for an offence under GST. The GST officer is empowered to arrest a person if he has reasons to believe that the person has committed an offence under GST that is punishable with imprisonment for a term exceeding 3 years.

Before arresting a person, the GST officer has to issue a warrant of arrest in writing. However, in cases where the officer has reasons to believe that the delay caused by issuing the warrant might lead to the person escaping or committing further offences, he can arrest the person without a warrant. In such cases, the officer has to obtain the warrant within 24 hours of the arrest.

The person arrested has to be produced before the magistrate within 24 hours of the arrest. The magistrate can either release the person on bail or remand him to judicial custody.

Conclusion

The provisions of inspection, search, seizure, and arrest under GST have been introduced to ensure compliance and deter non-compliance. It is important for businesses to comply with the provisions of GST to avoid penalties and fines. Businesses should maintain proper books of accounts, records, and documents to ensure that they can prove their compliance in case of inspections or searches. It is also important for businesses to be aware of their rights and the procedures to be followed during inspections, searches, seizures, and arrests.