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Factory visit by GST officer, Goods and Services Tax - GST

Issue Id: - 115179
Dated: 12-7-2019
By:- Mehul Pandya
Factory visit by GST officer

  • Contents

Dear sir,

Our unit is mentioned under SGST Jurisdiction. But today 3 CGST officer came to our business premises and told to produce some export and refund related documents. We are filling refund claims at SGST office and submitting all the original documents there. Now same all the docs are required by CGST officers too. They have given one inquiry letter and given us 2 days time to produced all the purchase and sales invoices from the date of registration.

So my question is they can do so when unit is alloted to SGST ? They have also not mentioned any GST clause under which they have initiated inquiry... Is there any remedy available in LAW ?

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Showing Replies 1 to 15 of 19 Records

1 Dated: 12-7-2019
By:- KASTURI SETHI

Yes. SGST Officers can visit unit falling in the jurisdiction of CGST office and vice versa. SGST officers, after completion of investigation, would submit draft SCN to the CGST Officers for issuance of the same and adjudication. The visiting officers must have written permission of the Deputy Commissioner. Commissioner can authorise any officer to visit the unit for the purpose of investigation. Permission is compulsory for the visiting GST officers. An assessee can ask for permission letter from the visiting officer.

We see that sometimes State Vigilance staff visits the office of Central Govt. on specific information. Ultimate purpose is to investigate whether there is evasion or not.


2 Dated: 12-7-2019
By:- KASTURI SETHI

As per Section 67 and 71 of CGST Act, visiting officers are to be authorised by the proper officer not below the rank of Joint Commissioner.


3 Dated: 12-7-2019
By:- Ganeshan Kalyani

It is proposed in the Finance Budger that Central Government will be able to refund State tax. This might be the reason or in the recent newpaper it was given that there are number of registrations but actually there was no place of business in real. Hence, the visit. The visit would increase in near future to curb wrong person doing bogus transaction.


4 Dated: 13-7-2019
By:- KASTURI SETHI

Rightly observed by Sh.Ganeshan Kalyani Ji.


5 Dated: 13-7-2019
By:- Mehul Pandya

They didn't have any written permission. They visited the site and told that they will required audit report, sales and purchase invoices etc.... They also given us letter without any supporting clause or rules under GST.


6 Dated: 13-7-2019
By:- KASTURI SETHI

All the records and docs have to be supplied to the department otherwise penalty can be imposed upon the party for non-compliance Non-submission of docs means creating hurdle in the way of investigation.


7 Dated: 14-7-2019
By:- KASTURI SETHI

Dear Sh.Pandya Ji,

Correct your line of action. Asking for permission letter has become time barred. No use of asking for section or clause in the letter issued by the State department. Proper action is to produce all the records demanded by the State Department. It is very much within GST law. The party is legally bound to submit the records. It is correct advice.


8 Dated: 14-7-2019
By:- DR.MARIAPPAN GOVINDARAJAN

You may produce the documents as required. Any wrong is done by the officers then you may allege the same in the reply given to the show cause notice.


9 Dated: 15-7-2019
By:- Ganeshan Kalyani

With the GST being implemented the transparency has come where you already shared the invoice wise outward supply. The same is becomes purchase for the other party to the transaction. Thus providing the details again would make no difference. Just take care that you provide the same details because if there is any difference in data already available in GSTN and that you provide now then you will have to justify the same. Thanks.


10 Dated: 16-7-2019
By:- Mahadev R

It is also advised to have proper entries in the security register about the visits. A letter indicating such visit and information provided could be written to such office. This could help in contesting against the allegation of 'suppression of facts' in terms of Section 74 to reduce the penalty.


11 Dated: 16-7-2019
By:- KASTURI SETHI

If Show Cause Notice is issued it would be mentioned therein that the SGST staff visited the unit on date etc. No use of collecting documentary evidence at belated stage. Moreover, all the facts/aspects cannot come to the notice of the visiting team whether Audit or flying squad on a particular day or days. If any new issue emerges later on, a new SCN can be issued. I mean to say no benefit of reduced penalty is possible. There are so many factors to invoke extended period.


12 Dated: 17-7-2019
By:- YAGAY andSUN

However, there are plethora of judgment that extended period cannot be invoked if department had conducted audits etc.


13 Dated: 17-7-2019
By:- Mahadev R

I dont think there is a SCN issued in this case (at least based on facts mentioned). Though there are various factors to invoke extended period, having a evidence or documentation to prove that a visit / audit / inspection has happened would be a good ground. There are many instances wherein it has been relied upon.


14 Dated: 17-7-2019
By:- KASTURI SETHI

Sh.Mahadev R. Ji,

I agree with you. Still the matter is under investigation. I also agree with the views of M/s.Yagay and Sun, Sirs.


15 Dated: 19-7-2019
By:- Mehul Pandya

Our SGST officers are very much satisfied with the all the docs and sanctioned refund claim. Our jurisdictional office is also SGST. They have not any issue in this case. Moreover we are filling return regularly and paying tax too as applicable. But at the other side @ Range Superintendent of CGST We have given reply of all the queries along with copy of documents as they required even though they haven't any written permission from JC. Now they demanding daily new or irrelevant things. In other words I would say they are demanding documents like Conducting Audit without any audit letter. We have also shown Original Files to them. It gives feels like whether we have done any crime by taking refund or what ?? We have submitted return, invoices,SB verfied with icegate,GST returns, Challans, Export Invoice, Purchase and Sales Bills, Audit Report etc etc. Now They are still demanding more and more documents like factory lay out plan with engineer sign stamp, expenses vouchers on daily basis. Our books are clear and there is no question of any demand but we dont know how to end up their requirements.....


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