Can GST officer purchase the goods or services to test compliance?
Question – Can GST official test purchase the goods or services from any person to check the compliance of GST?
Answer – Yes, such test check can be undertaken to check compliance. Provision for this has been provided vide Sub-section 12 of Section 67 of The Central Goods and Services Tax Act,2017.
The section 67(12) of CGST Act,2017 reads out as:
The Commissioner or an officer authorised by him may cause purchase of any goods or services or both by any person authorised by him from the business premises of any taxable person, to check the issue of tax invoices or bills of supply by such taxable person, and on return of goods so purchased by such officer, such taxable person or any person in charge of the business premises shall refund the amount so paid towards the goods after cancelling any tax invoice or bill of supply issued earlier.
So in accordance with this provision, authorised officer can cause the purchase to check the issue of tax invoice or bill of supply. Services once consumed cannot be returned, however, if such officer returns the goods, taxable person shall refund the amount paid by the officer after cancelling any tax invoice or bill of supply issued earlier
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