Under the GST regime, the government has the power to conduct searches and seizures to prevent tax evasion. During these searches, the authorities may come across goods that are liable to confiscation or seizure. In such cases, the officers have the right to seal the goods and prevent their removal until further orders.
The provisions relating to seizure and sealing of goods under GST are covered under Sections 67 and 68 of the Central Goods and Services Tax Act, 2017. These provisions ensure that the authorities have the power to take action against tax evaders and prevent them from continuing their illegal activities.
Seizure of goods refers to the act of taking possession of the goods that are liable to confiscation under the GST Act. The authorities may seize the goods to prevent any further loss of revenue to the government. The provisions related to seizure of goods under GST are covered under Section 67 of the Act.
The seizure of goods can be initiated by an officer not below the rank of a Joint Commissioner of CGST/SGST/UTGST. The officer must have reasons to believe that the goods are liable to confiscation under the Act. The officer has the power to seize the goods and documents related to the goods, and issue a notice to the person in charge of the goods.
The notice issued by the officer must contain the details of the goods seized, the reasons for seizure, and the procedure for the release of the goods. The person in charge of the goods must respond to the notice within a stipulated time period, failing which the goods may be confiscated.
Sealing of goods refers to the act of affixing a seal on the goods that are liable to confiscation. The authorities may seal the goods to prevent their removal until further orders. The provisions related to sealing of goods under GST are covered under Section 68 of the Act.
The sealing of goods can be initiated by an officer not below the rank of a Superintendent of CGST/SGST/UTGST. The officer must have reasons to believe that the goods are liable to confiscation under the Act. The officer has the power to seal the goods and issue a notice to the person in charge of the goods.
The notice issued by the officer must contain the details of the goods sealed, the reasons for sealing, and the procedure for the release of the goods. The person in charge of the goods must respond to the notice within a stipulated time period, failing which the goods may be confiscated.
The person in charge of the goods has the right to apply for the release of the seized or sealed goods. The application must be made within a stipulated time period, failing which the goods may be confiscated. The officer has the power to release the goods after verifying the details provided by the person in charge of the goods.
If the officer is satisfied with the application, he may release the goods on payment of the tax and penalty due. However, if the officer is not satisfied, he may confiscate the goods and initiate proceedings for adjudication.
The provisions relating to seizure and sealing of goods under GST ensure that the authorities have the power to take action against tax evaders and prevent them from continuing their illegal activities. The person in charge of the goods has the right to apply for the release of the seized or sealed goods and must respond to the notice issued by the officer within a stipulated time period.
Income from House Property and Taxes
GST Registration Status | How to Track GST Application Status?
What are the Different Types of House Property?
