Regular Audit INSPECTION, SEARCH, SEIZURE AND ARREST

(Documents, Goods & Person)

SCN/Demand Order
COMMISSIONER I Inspection of ANY business place (Premises / warehouse /
OFFICE 0---------------0 TAX not paid / Short-Paid/Erroneous Refund N showroom etc.) of I & II Party –inspection of books of account,
ITC Wrongly Availed/Utilised S documents, computers, computer programs, computer software
(Audit / Special Audit May or May Not be) and the Person will cooperate.
Audit of books of account at any office (assessee/officer) P
(Period: 1 or more FY & Frequency TBD) E IF JC or above Rank officer has reason to believe that I/II party
OFFER : 1 OFFER : 1 involve in TAX EVASION.(by himself or through authorised
C officer: GST INS- 01 )
INFO. /Notice 15 DAYS in advance [GST ADT- 01]
(PAY TAX + INTEREST) PAY TAX + INTEREST + 15% Penalty T II Party means: Transporter, warehouse keeper etc.
Assessee Facilitate Officer - & Time of SCN 3 / 6 Months in advance I
Note: Inspection of Goods in movement / Transit-Possible - IF
provide timely & correct INFO. O Value of Goods Rs. 50,000 Plus – and the interceptor may require
IN FULL IN PART IN PART IN FULL
Time Limit of Audit: 3Months + EXT of 6 Months from:- N PIC to produce the document and will do so and allow the
inspection of goods.
For Balance For Balance
* Books of A/c made L
Available. A No SCN No SCN IF J.C. or Above Rank Officer during Inspection or OTHERWISE
OR T No Penalty SCN / Supp. SCN (i.e. Direct reason) has reason to believe -that any contraband goods or
* Actual Institution of Audit E [TAX+INT+PENALTY (10% S useful Doc. – Secreted at ANY place – then search & seize - Such
@ Assessee’s Office R or Rs. 10,000 For Bonafide] A Documents & Goods & pass an order GST INS: 02
(For Fraud 100%) Prepare Inventory (Note: Assessee may Take Xerox).
On conclusion [GST ADT- 02] officer Inform Findings R Power of Officer: Seal / break or open the door/ any Almirah
. &tell the Rights & Obligation & If Necessary-SCN shall C /Box/ electronic devices etc.
Within 30 Days Within 30 Days Note: If any goods- practically not possible to seize then pass an order
be issued. OFFER: 2 OFFER: 2 H to not to remove the goods or otherwise deal with the goods (except
with the prior permission of such officer GST INS- 03).
Note: Seized document etc. will be returned after the purpose is solved
(TAX + INTEREST) PAY: TAX + INTEREST &
OFFICE OF Demand Order and documents which are not in use shall be returned within 30 days.
ASSESSEE * No Penalty +PENALTY 25% Note: seized goods shall be released on provisional basis after taking a
* CASE Close. (Tax + Penalty + (Not exceed Amount S BOND [GST INS- 03] with security or payment of tax, interest,
Interest) Specified in SCN) CASE Close penalty etc. [if fails to return then security will be encashed]
E
Within 30 Days I Date of seizure
SPECIAL AUDIT:
OFFER:3 Z
IF NO Notice is issued within 6M+6M
Need to conduct During ANY – Scrutiny/Enquiry/ U then the goods shall be returned to the
Investigation/Other Proceedings & complexity of case PAY: TAX + INT. + 50% R person.
Value in issue, ITC not with in normal Limit. Penalty E Note: After Seizure Perishable
Time Limit of : Demand Order: (CASE Close) Goods/ hazardous goods shall be
Notice dispose off /Sold.
with in 3/5 year of DD of filing of Annual Return
AC/DC within 3/5 year of : Date of Erroneous Refund
or With Approval of Commissioner Otherwise proceedings shall be deemed to be concluded.
Above Officer
* Reason of arrest: done any criminal offence specified in
Within 2 years in referred back cases A section 132(1) (a), (b), (c), (d)
Notice to person for Special/Audit to be conducted by R
. CA/Cost Accountant as Nominated by Commissioner. R *Power to arrest: any officer with the order of
[GST ADT- 03] File an Appeal to First Appellate Commissioner
Report Time: 90 Days + 90 Days Authority E *Power to hold: - Cognizable Officer: inform grounds of
S arrest and Produce before Magistrate within 24 Hrs. - Non
Opportunity of Being heard IF Adverse Report. General Points: T Cognizable: May Release.
* Stay period to be excluded in computing the period.
SCN – May be – Issued- if needed

Fees of Auditor: to be paid by Commissioner.
Note: It is Irrelevant that Tax Audit/Cost Audit etc.
already conducted.
Special Audit Report : [GST ADT- 04]
* Self assessed liability as shown in return u/s 39 – direct recovery- without issuing SCN and Demand Order.
* Fraud Charge Impose – D/o – App. Order – Assessee found honest/Bonafide then SCN – shall be treated to issue
as in Bonafide case. Other Power:
* Opportunities of being heard. * Summons any Relevant Person to give evidence or produce doc
*Access to registered premises for carryout
* Adjournment 3 times (Max.) to a Party.
any Audit Scrutiny Verification check & Assesse shall Co-
* Demand order – with Reasoning and Double penalty.
Operate.
* App. Order Modify – INTEREST / Penalty also to be modified. * Police officer/Custom Officer/Railway/officers engaged in land
* INTEREST PAYABLE even IF NOT specified in Demand order. revenue collection/ village officers/ SGST or UTGST officer etc.
* Above Provisions also applicable when only INTEREST in Dispute. shall assist such GST Officer.