TMI BlogUnaccounted stockX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir/Madam During the gst search, the department seized some goods for which party could not produce any invoices of purchase. Please inform how they can calculate tax on these goods as gst is applicable on the sale of goods when party will sale these goods he will pay . Can department charge GST on the purchase made without bills ? If yes, Can they charge interest and penalty there on ? - Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By KASTURI SETHI - The Reply = Sh.Rajesh Kumar Ji, After completion of investigation, the department will issue SCN to both supplier and the buyer. Statement of both will be recorded. Thereafter, line of action will be decided by the department. Tax to be paid will be mentioned in the SCN. The seller and the buyer both will get an opportunity to defend themselves. Yes. The department can d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand and recover GST payable on the purchase made without bills. Purchasing goods without bills is a very serious offence. Interest can be charged under Section 50 of CGST Act and penalty is imposable under Section 122 or 132 of CGST Act , if charges are established. - Reply By Rajesh Kumar - The Reply = Sir , what if party ready to pay GST on the goods seized by the Department? What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be the method of calculation to quantify the GST payble? - Reply By Amit Agrawal - The Reply = I agree with Shri Kasturi Sethis Ji! Jus to add: Section 67 (6) of the CGST Act, 2017 states as follows: The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. With regards to calculation of tax-liability, various factual aspects needs to be looked at and also, depending upon the outcome of the investigation by Dept. - Reply By KASTURI SETHI - The Reply = Tax will be paid on market value of the goods seized. I agree with the views of Sh.Am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it Agrawal Ji. - Reply By Rajesh Kumar - The Reply = Sir, on MRP products, calculation for GST amount should be in reverse method as MRP is inclusive of all taxes. Is any discount at any stage of sale is required to less from the the basic price ? Let's MRP is 100 then @18%GST , the basic value comes to ₹ 84.75 and GST is 15.25. Is this ₹ 15.25 is required to pay on the seized go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods or any other method of calculation? - Reply By KASTURI SETHI - The Reply = What are goods seized by the department ? It is necessary to know for correct reply. - Reply By KASTURI SETHI - The Reply = In case the goods are under MRP, even after admissible abatement, the value is inclusive of GST. - Reply By Shilpi Jain - The Reply = At the most there can be a penalty for purchasing go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods without invoice. How can department demand tax from the recipient on that? He has not supplied it. Levy provisions are not attracted.. Instead if you can share details of the supplier department can take appropriate action . However if it's a transaction to defraud revenue the consequences can be unimaginable. Suggest you consult a expert consultant in case you are genuine - Reply By KA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STURI SETHI - The Reply = The recipient and the supplier both are at fault. I agree with the reply of Madam Shilpi Jain. - Unaccounted stock - Query Started By: - Rajesh Kumar Dated:- 11-2-2022 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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