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GST Inspection, Search & Seizure

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Contents at a glance

Preface 5
About the Authors 9
Detailed Contents 15
Chapter 1 GST in India — An Overview 1
Chapter 2 Search, Seizure and Summons: Legal Framework 25
Chapter 3 Legal Terminology and Principles of Interpretation 28
  • Annexure 3.1 Text of Circular No. 1/1/2017, dated 26.06.2017
 156
  • Annexure 3.2 Text of Circular No. 3/3/2017-GST, dated 05.07.2017
 157
  • Annexure 3.3 Text of Circular No. 31/05/2018-GST, dated 09.02.2018
 160
  • Annexure 3.4 Text of Circular No. 157/13/2021-GST, dated 20.07.2021
 163
  • Annexure 3.5 Text of Circular No. 169/01/2022-GST, dated 12.03.2022
 166
  • Annexure 3.6 Text of Instruction No. 02/2021-22 [GST- Investigation], dated 22.09.2021
 168
Chapter 4 Inspection, Search & Seizure 170
  • Annexure 4.1 Text of Rules 139, 140 and 141 of Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017)
 255
  • Annexure 4.2 Text of Forms GST INS-01, GST INS-02,GST INS-03, GST INS-04 and GST INS-05 of Central Goods and Services Tax Rules,2017 (CGST Rules, 2017)
 257
  • Annexure 4.3 (A) Text of sections 47, 51, 94, 99, 100,101, 103, 165 and 166 of the Code of Criminal Procedure, 1973
 262
  • (B) Text of Sections 44, 49, 97, 102, 103,104, 108, 185 and 186 of Bharatiya Nagarik Suraksha Sanhita, 2023
 266
  • Annexure 4.4 Text of F. No. GST/INV/DGOV Reference/20-21 dated 02.02.2021
 270
  • Annexure 4.5 Text of Notification No. 27/2018-Central Tax dated 13.06.2018
 273
  • Annexure 4.6 Text of letter No. CBEC/20/43/01/2017-GST(PT) dated 05.10.2018
 274
  • Annexure 4.7 Text of Notification No. 02/2022-Central Tax dated 11.03.2022
 275
  • Annexure 4.8 Text of CBIC Instruction No. 01/2022-23(GST-Investigation) dated 25.05.2022
 276
  • Annexure 4.9 Text of DGGI Instruction F.No. DGGI/17/2023-INV-O/o Pr DG-DGGI-HQ-DELHI(1) dated 08.02.2024
 278
  • Annexure 4.10 Text of Instruction No. 01/2023-24-GST(Inv.) dated 30.03.2024
 283
Chapter 6 Arrest & Bail 367
  • Annexure 6.1 Text of Instruction No. 02/2022-23 (GST-Investigation) dated 17.08.2022
 459
  • Guidelines for Arrest and Bail in relation to Offences Punishable under the CGST Act,2017 issued by GST Investigation Wing,CBIC, New Delhi
 459
  • Annexure 6.2 Text of Instruction No. 04/2022-23 (GST-Investigation) dated 01.09.2022
 464
  • Guidelines for Launching of Prosecution under the Central Goods & Services Tax Act, 2017 issued by GST Investigation Wing, CBIC, New Delhi
 464
Chapter 7 Summon Proceedings 472
  • Annexure 7.1 Text of Sections 172, 175, 179, 193 and 228 of Indian Penal Code, 1860 and Section 206,210, 214, 229 and 267 of Bharatiya Nyaya Sanhita, 2023
 509
  • Annexure 7.2 Text of the summon under section 70 of CGST Act, 2017
 512
  • Annexure 7.3 Text of the Instruction No. 03/2022-23(GST-Investigation) dated 17.08.2022 issued by GST-Investigation Wing, CBIC New Delhi
 514
Chapter 8 Access to business premises and Proper Officers 516
Chapter 9 Detention, Seizure and Release of Goods and Conveyance in Transit 525
  • Annexure 9.1 Text of Rules 138B, 138C, 138D, 140, 141,142, 144, 144A of Central Goods and Services Tax, 2017 (CGST Rules, 2017)
 658
  • Annexure 9.2 Text of Circular No. 6/2022 dated 06.04.2022 issued by Kerala State Commissioner of GST, Government of Kerala (Clarification on detention of goods in the course of transportation on the ground of undervaluation)
 663
  • Annexure 9.3 Text of Circular No. 10/2022 dated 10.11.2022 issued by Commissioner State GST Department, Kerala (Instruction related to detention, seizure and release of goods and conveyances U/s 129 of the SGST/CGST Act, 2017)
 664
  • Annexure 9.4 Extracts of Circular No. 10/2019 dated 31.05.2019 issued by Government of Tamil Nadu (Protocol to be followed by Proper Officers in respect of the functions envisaged under section 129)
 666
  • Annexure 9.5 Text of Circular No. IW1/3365394/2022 dated 10.01.2023 issued by Principal Secretary/Commissioner of Commercial Taxes, Government of Tamil Nadu(Clarification on power, roles and responsibilities of Roving Squad Officers)
 670
Chapter 10 Confiscation of Goods (Confiscation & Penalty in relation to Goods & Services) 678
Chapter 11 Offences 719
  • Annexure 11.1 Text of Rules 162 and 163 of Central Goods and Services Tax Rules, 2017 (CGST Rules,2017)
 746
  • Annexure 11.2 Forms GST CPD-01 and GST CPD-02 of Central Goods and Services Tax Rules, 2017(CGST Rules, 2017)
 749
  • Annexure 11.3 Text of Section 320 of Code of Criminal Procedure, 1973 (CrPC, 1973)
 751
  • Annexure 11.4 Text of Section 359 of the Bhartiya Nagarik Suraksha Sanhita, 2023
 756
Chapter 12 Fake Invoices and Tax Evasion (Including reported cases) 761
  • Annexure 12.1 Standard Operating Procedure (SOP) for utilising the fake invoice Issuers dataset by SGST authorities — reg
 780
  • Annexure 12.2 Text of Press Releases/Media Reports in practices of tax evasion relating to GST Frauds/Fake or Bogus Invoices/Input Tax Credit Scams
 785
  • Annexure 12.3 Text of CBIC Circular No. 171/03/2022-GST dated 06.07.2022 in relation to transactions involving fake invoices
 837
  • Annexure 12.4 Text of Rules 46, 46A, 47 and 48 of CGST Rules, 2017
 840
Appendix 1 Abbreviations used in the Book 847
Appendix 2 Meaning of Important Legal Maxims 850

Detailed Contents

Preface 5
About the Authors 9
Contents at a glance 11

Chapter 1

GST in India — An Overview

1. Legislative background 1
2. Introduction of GST 3
3. Genesis of GST 4
4. Taxes subsumed/not subsumed in GST 5
5. Cesses abolished 5
6. Objectives of GST 6
7. Need for GST 7
8. Concept of GST 7
  • (1) Features of CGST
 9
  • (2) Features of SGST
 9
  • (3) Features of IGST
 11
  • (4) Features of UTGST
 13
9. Advantages of Goods & Services Tax (GST) 13
10. Rate of GST 15
11. GST Collection 16
12. New Concepts in GST 17
  • (1) Cascading Effect
 17
  • (2) Compensation Cess
 17
  • (3) Revenue Neutral Rate
 19
  • (4) GST Network (GSTN)
 20
13. Inspection, Search and Seizure 23
14. Challenges and Road ahead 24

Chapter 2

Search, Seizure and Summons: Legal Framework

1. Statutory Provisions of CGST Act, 2017 (Amended upto March, 2024) 25
2. CGST Rules, 2017 26

Chapter 3

Legal Terminology and Principles of Interpretation

1. Legal Terminology 29
2. Terminology under CGST Act, 2017 29
  • (1) Adjudicating authority [Section 2(4)]
 29
  • (2) Authorized representative [Section 2(15)]
 31
  • (3) Competent Authority [Section 2(29)]
 34
  • (4) Designated Authority [Section 2(40)]
 34
  • (5) Document [Section 2(41)]
 34
3. Proper Officer [Section 2(91)] 35
  • (1) CBIC Clarifications on powers and delegation, monetary limits etc. for Proper Officer
 35
  • (2) Judicial pronouncements under GST
 38
  • (3) Words and expressions used [Section 2(120)]
 43
4. Principles of Interpretation in Tax Laws 43
5. Interpretation of Taxing Statutes 43
6. Strict Interpretation 53
7. Legislative Intention 59
8. Purposive Interpretation 64
9. Delegated Legislation 68
10. Power to Search & Seizure 71
11. Concept of Reason to Believe 73
12. Aspect Theory 80
13. Ejusdem Generic Rule 83
14. Rule of Reading Down 85
15. Doctrine of Res Judicata 86
16. Doctrine of Noscitur A Sociis 89
17. Substance over Form 91
18. Pari materia Statutes 94
19. Natural Justice 96
20. Reasoned Order/Speaking Order 123
21. Notification 129
22. Circulars/Clarifications 133
23. Proviso 141
24. Judicial Discipline 143
25. Precedent/Binding Precedent 147
Annexure 3.1 Text of Circular No. 1/1/2017, dated 26.06.2017 156
Annexure 3.2 Text of Circular No. 3/3/2017-GST, dated 05.07.2017 157
Annexure 3.3 Text of Circular No. 31/05/2018-GST, dated 09.02.2018 160
Annexure 3.4 Text of Circular No. 157/13/2021-GST, dated 20.07.2021 163
Annexure 3.5 Text of Circular No. 169/01/2022-GST, dated 12.03.2022 166
Annexure 3.6 Text of Instruction No. 02/2021-22 [GST-Investigation], dated 22.09.2021 168

Chapter 4

Inspection, Search & Seizure

1. CGST Act, 2017 (Chapter XIV) 171
2. CGST Rules, 2017 (Chapter XVII) 171
3. Power of inspection, search and seizure (Section 67) 172
4. Provisions of section 67 at a glance 174
5. Gist of Section 67 – Inspection Search and Seizure 175
6. Taxable person [Section 2 (107)] 175
7. Place of business [Section 2(85)] 176
8. Principal place of business [Section 2(89)] 177
9. Inspection [Section 67(1)] 177
10. What is Inspection? 178
11. Power to Inspect [Section 67] 178
12. Parallel jurisdiction 180
13. Reason to Believe 180
14. Relevant judicial pronouncements on ‘reason to believe’ in pre-GST era 180
15. Relevant judicial pronouncements on ‘reason to believe’ in GST regime 185
16. Search and Seizure [Section 67(2 to 8)] 193
17. Meaning of search and seizure 194
18. Power to search and seizure 194
19. Meaning of ‘Secreted’ 196
20. Places to be searched 196
21. Contents of Search Warrant 196
22. Essential conditions for Search and Seizure 197
23. Situations for Confiscation 197
24. Retention of seized items 198
25. Copies of document seized 198
26. Return of documents etc. seized 198
27. Provisional release 198
28. Inventory of items seized 199
29. Panchnama for Seizure 199
30. Power to seal or break 199
31. Power of Government to dispose off seized material 199
32. Purchase of goods by officer 200
33. Manner of seizing goods 200
34. Seizure of perishable/hazardous nature of goods 200
35. Seizure of Cash in GST Search 200
36. Application of Code of Criminal Procedure, 1973 205
37. Application of Bharatiya Nagarik Suraksha Sanhita, 2023 205
38. CBIC Clarification on applicability of Code of Criminal Procedure (Cr.P.C) 206
39. Power to adjudicate notices issued by DGGI 206
40. CBIC clarification on tax deposited during search/investigation 206
41. Recent DGGI guidelines on GST investigation 207
42. New CBIC guidelines for GST investigations 209
43. Consequences of illegal search 211
44. Safeguards available to assessee for a proper and transparent conduct of search operations 211
45. Guiding Principles on conduct of Search 212
46. Confiscation of goods and conveyances and levy of penalty (Section 130) 213
47. Applicable Rules 213
48. Applicable Forms 214
49. Relevant judicial pronouncements in pre-GST era 214
50. Relevant judicial pronouncements in GST era regime 219
51. Protection of action taken under the Act (Section 157) 254
Annexure 4.1 Text of Rules 139, 140 and 141 of Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017) 255
Annexure 4.2 Text of Forms GST INS-01, GST INS-02, GST INS-03, GST INS-04 and GST INS-05 of Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017) 257
Annexure 4.3 (A) Text of sections 47, 51, 94, 99, 100, 101, 103, 165 and 166 of the Code of Criminal Procedure, 1973 262
(B) Text of Sections 44, 49, 97, 102, 103, 104, 108, 185 and 186 of Bharatiya Nagarik Suraksha Sanhita, 2023 266
Annexure 4.4 Text of F. No. GST/INV/DGOV Reference/20-21 dated 02.02.2021 270
Annexure 4.5 Text of Notification No. 27/2018-Central Tax dated 13.06.2018 273
Annexure 4.6 Text of letter No. CBEC/20/43/01/2017-GST(PT) dated 05.10.2018 274
Annexure 4.7 Text of Notification No. 02/2022-Central Tax dated 11.03.2022 275
Annexure 4.8 Text of CBIC Instruction No. 01/2022-23 (GST-Investigation)dated 25.05.2022 276
Annexure 4.9 Text of DGGI Instruction F.No. DGGI/17/2023-INV-O/o Pr DG-DGGI-HQ-DELHI(1) dated 08.02.2024 278
Annexure 4.9 Text of DGGI Instruction F.No. DGGI/17/2023-INV-O/o Pr DG-DGGI-HQ-DELHI(1) dated 08.02.2024 278
Annexure 4.10 Text of Instruction No. 01/2023-24-GST (Inv.) dated 30.03.2024 283

Chapter 5

Inspection of Goods in Movement

1. Inspection of goods in movement (Section 68) 288
2. Gist of Section 68: Inspection in movement 288
3. What is meant by ‘inspection’? 289
4. What is meant by ‘goods’? 290
5. Access to business premises 290
6. What is meant by ‘movement’? 291
7. Essential conditions for inspection of goods in movement 291
8. Prescribed documents 291
9. Validation of documents 292
10. Interception of conveyance 292
11. E-way Bills 292
12. Minor mistakes to be ignored 294
13. Relevant judicial pronouncements in GST regime 295
14. Rules relating to E-way Bills 318
15. Forms relating to E-way bills 318
16. CBIC Clarifications on confiscation/detention/E-way bills 318
Annexure 5.1 Text of Circular No. 3/3/2017-GST dated 05.07.2017 319
Annexure 5.2 Text of Circular No. 41/15/2018-GST dated 13.04.2018 322
Annexure 5.3 Text of Circular No. 47/21/2018-GST dated 08.06.2018 345
Annexure 5.4 Text of Circular No. 49/23/2018-GST dated 21.06.2018 348
Annexure 5.5 Text of Circular No. 64/38/2018-GST dated 14.09.2018 350
Annexure 5.6 Text of Circular No. 122/41/2019-GST dated 05.11.2019 352
Annexure 5.7 Text of Rules 138, 138A, 138B, 138C, 138D, 138E, 138F and 140 of CGST Rules, 2017 356
Annexure 5.8 [(See rule 138 (14)] 362

Chapter 6

Arrest & Bail

1. Provisions of Arrest at a glance 368
2. Arrest 369
  • (1) Meaning of arrest
 369
  • (2) Power to arrest
 369
  • (3) Reason to believe
 369
  • (4) Offences punishable with arrest
 369
  • (5) Safeguards under GST Act for arrested person
 370
  • (6) Who can arrest?
 370
  • (7) Who can be arrested?
 370
  • (8) Rights of arrested person
 371
  • (9) Guidelines, precautions and safeguards for arrest
 371
  • (10) Supreme Court guidelines on arrest
 372
  • (11) Possible measures to avoid arrest
 375
3. Relevant judicial pronouncements in pre GST era 375
4. Relevant judicial pronouncements in GST regime 380
5. Bail 389
  • (1) Meaning of ‘bail’ and ‘bailable offence’
 389
  • (2) Types of Bail
 390
  • (3) Release of arrested persons
 390
6. Relevant judicial pronouncements in pre-GST era 391
7. Relevant judicial pronouncements in GST regime 393
8. Meaning of Prosecution 414
9. Meaning of Offence 415
10. Types of offences 415
  • (1) Cognizable offence
 415
  • (2) Non-cognizable offence
 416
11. Meaning of Conviction 416
12. Punishment for certain offences (Section 132) [in force upto 30.09.2023) 416
  • (1) Repeated offences (Sub-section 2)
 421
  • (2) Scope of tax for calculating limit
 421
  • (3) Minimum punishment
 421
13. Relevant judicial pronouncements in pre-GST era 424
  • (1) Prosecution
 424
  • (2) Offences
 427
  • (3) Conviction
 428
14. Relevant judicial pronouncements in GST regime 428
Annexure 6.1 Text of Instruction No. 02/2022-23 (GST-Investigation) dated 17.08.2022 459
Guidelines for Arrest and Bail in relation to Offences Punishable under the CGST Act, 2017 issued by GST Investigation Wing, CBIC, New Delhi 459
Annexure 6.2 Text of Instruction No. 04/2022-23 (GST-Investigation) dated 01.09.2022 464
Guidelines for Launching of Prosecution under the Central Goods & Services Tax Act, 2017 issued by GST Investigation Wing, CBIC, New Delhi 464

Chapter 7

Summon Proceedings

1. Power to summon persons to give evidence and produce documents (Section 70) 473
2. Meaning of ‘summon’ and its purpose 473
3. Important points for Issuance of Summons under Section 70 475
4. Summon 476
5. Power to issue summons (Sub-section 1) 476
6. Issuance of Summon [Section 70] 476
7. Precautions to be observed while issuing summons 476
8. Obligations of person summoned 476
9. Situations calling for action against Persons Summoned 477
10. Nature of summon proceedings [Sub-section (2)] 477
11. Presence of advocate/CA during recording of statement 477
12. Consequences and penalties for not attending to summons 478
13. Right to silence of summoned person 479
14. How summon to be issued? 479
15. Issuance of summons to firms/company 479
16. Issuance of summons during search 480
17. Evidence value of statement under section 70 of CGST Act, 2017 480
18. Operational guidelines for summons 480
19. New Summon Guidelines 483
20. CBIC Advisory on Fake GST Summons 483
21. CBIC Guidelines involving Summons during Investigations with regular taxpayers (vide Instruction No. 01/2023-24 GST (inv.), dated 30.03.2024 issued by Ministry of Finance,Department of Revenue) 484
22. Relevant Judicial Pronouncements in pre-GST regime 485
22. Relevant Judicial Pronouncements in GST regime 486
23. Relevancy of statements under certain circumstances (Section 136) 508
  • (1) Relevance of Statement
 508
Annexure 7.1 Text of Sections 172, 175, 179, 193 and 228 of Indian Penal Code, 1860 and Section 206, 210, 214, 229 and 267 of Bharatiya Nyaya Sanhita, 2023 509
Annexure 7.2 Text of the summon under section 70 of CGST Act, 2017 512
Annexure 7.3 Text of the Instruction No. 03/2022-23 (GST-Investigation) dated 17.08.2022 issued by GST-Investigation Wing, CBIC New Delhi 514

Chapter 8

Access to business premises and Proper Officers

1. Business [Section 2(17)] 517
2. Place of Business [Section 2(85)] 518
3. Principal Place of business [Section 2(89)] 519
4. Proper officer [Section 2(91)] 520
5. Access to business premises [Section 71] 520
6. Access to business premises [Sub-section 1] 520
7. Duty of person in charge of premises [Sub-section (2)] 521
8. Objective of access to business premises [Sub-section (2)] 522
9. Who can requisition documents? 522
10. Guidelines for access to business premises 522
11. Officers to assist proper officer [Section 72] 522
12. Officers required to assist proper officers [Sub-section (1)] 523
13. Power to authorize officers [Sub-section (2)] 523
14. Relevant judicial pronouncements in GST regime 523

Chapter 9

Detention, Seizure and Release of Goods and Conveyance in Transit

1. Detention, seizure and release of goods and conveyances in transit (Section 129) 526
2. Meaning of ‘Offence’ 529
3. Meaning of Penalty 529
4. Scope of Section 129 529
5. Release of Goods on Payment of Penalty 531
6. Consequences of Non-payment 532
7. Changes in sub-section (4) of section 129 532
8. Principles of Natural Justice to be followed 532
9. Release of Goods 533
10. Non-applicability of section 67 (w.e.f. 01.01.2022) 533
11. Detention of Goods in Transit Due to under-valuation 533
12. Detention/Seizure/Release of Goods under Section 129 of GST law 534
13. Protocol for Roving Squad for Levy of Penalties 534
14. Applicable Rules 535
15. Judicial pronouncements under GST regime 535
Annexure 9.1 Text of Rules 138B, 138C, 138D, 140, 141, 142, 144, 144A of Central Goods and Services Tax, 2017 (CGST Rules, 2017) 658
Annexure 9.2 Text of Circular No. 6/2022 dated 06.04.2022 issued by Kerala State Commissioner of GST, Government of Kerala(Clarification on detention of goods in the course of transportation on the ground of undervaluation) 663
Annexure 9.3 Text of Circular No. 10/2022 dated 10.11.2022 issued by Commissioner State GST Department, Kerala (Instruction related to detention, seizure and release of goods and conveyances U/s 129 of the SGST/CGST Act, 2017) 664
Annexure 9.4 Extracts of Circular No. 10/2019 dated 31.05.2019 issued by Government of Tamil Nadu (Protocol to be followed by Proper Officers in respect of the functions envisaged under section 129) 666
Annexure 9.5 Text of Circular No. IW1/3365394/2022 dated 10.01.2023 issued by Principal Secretary/Commissioner of Commercial Taxes, Government of Tamil Nadu (Clarification on power,roles and responsibilities of Roving Squad Officers) 670

Chapter 10

Confiscation of Goods(Confiscation & Penalty in relation to Goods & Services)

1. Confiscation of goods or conveyance and levy of penalty (Section 130) 678
2. Amendments made by Finance Act, 2021 (w.e.f. 01.01.2022) 679
3. Meaning of Confiscation 680
4. Circumstances for confiscation and penalty 680
5. Levy of Fine and Penalty 681
6. Fine in lieu of Confiscation 681
7. Services not covered 681
8. Manner of dealing with Confiscated Goods 681
9. Judicial pronouncements under GST regime 682
10. Confiscation or penalty not to interfere with other punishments (Section 131) 716
11. Reference to Code of Criminal Procedure, 1973 717
12. Relevant Judicial Pronouncements 717

Chapter 11

Offences

1. Liability of officers and certain other persons (Section 133) 720
2. Section 133 makes it obligatory to keep information confidential 721
3. Meaning of offences 721
4. Persons liable for prosecution 722
5. Nature of offence 723
6. Punishment 723
7. Pre-conditions for application of section 133 723
8. Cognizance of offences (Section 134) 723
9. Presumption of culpable mental state (Section 135) 723
10. Meaning and scope of culpable mental state 724
11. How to prove a presumption? 724
12. Code of Criminal Procedure, 1973 725
13. Offences by companies (Section 137) 725
14. Persons guilty 726
15. Meaning of ‘company’ and ‘director’ 726
16. Consequences of offences by companies/firm etc. 727
17. Defense grounds 727
18. Judicial pronouncements under GST regime 728
19. Compounding of offences (Section 138) 730
20. Meaning of ‘compounding’ 731
21. Scope of compoundable offences (Sub-section (1)] 732
22. Exclusions/restrictions on compounding (sub-section 1) 732
23. Conditions for compounding (Sub-section 1) 734
24. Amount payable on compounding 734
25. Power of compounding 734
26. Monetary limit on compounding (sub-section 2) 735
27. Consequences of compounding (Sub-section 3) 735
28. Applicability of Code of Civil Procedure, 1973 (CrPC, 1973)/Bharatiya Nagarik Suraksha Sanhita, 2023 736
29. Applicable Rules and Forms 736
  • (1) Applicable Rules
 736
  • (2) Applicable Forms
 737
30. Judicial pronouncements in pre-GST era 737
31. Judicial pronouncements in GST regime 738
32. Obligation to furnish information return (Section 150) 738
33. Who is required to furnish information return (Sub-section (1)] 739
34. Objectives of information return 740
35. Power of commissioner in case of non-compliance [Sub-section (2)] 741
36. Removal of defects [Sub-section (2)] 741
37. Issuance of show cause notice (Sub-section (3)] 741
38. Penalty for non-compliances 741
39. Power to call for information (Section 151) 742
40. Amendment made by Finance Act, 2021 742
41. Comparison of section 151 (pre and post amendment) 742
42. Examples of information which may be collected 743
43. Use of information 743
44. Consent based sharing of information furnished by taxable person [Section 158A] 743
  • (1) Sharing of information
 743
  • (2) Applicable Rule
 744
Annexure 11.1 Text of Rules 162 and 163 of Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017) 746
Annexure 11.2 Forms GST CPD-01 and GST CPD-02 of Central Goods and Services Tax Rules, 2017 (CGST Rules, 2017) 749
Annexure 11.3 Text of Section 320 of Code of Criminal Procedure, 1973 (Cr PC, 1973) 751
Annexure 11.4 Text of Section 359 of the Bhartiya Nagarik Suraksha Sanhita,2023 756

Chapter 12

Fake Invoices and Tax Evasion(Including reported cases)

1. Background 762
2. What is invoice or tax invoice? 763
3. Issuance of tax invoice (Section 31) 763
4. What is Fake Invoice? 766
5. Motive behind Fake Invoices 767
6. Impact of Fake Invoices 768
7. GST Frauds through Fake Invoices 768
8. Circular Trading 769
9. Use of Intelligence against Tax Evasion 770
10. Standard Operating Procedure (SOP) on Fake Invoices 770
11. Penal provisions (Section 122) 772
12. Amendment made by Finance Act, 2020 (w.e.f. 01.01.2021) 774
13. Amendment made by Finance Act, 2023 (w.e.f. 01.10.2023) 775
14. Penalty for specified activities 776
15. Punishments for certain offences 776
16. Offences in relation to fraudulent activities 776
17. Judicial Pronouncements 777
18. Reported case studies on fake invoices/frauds 777
19. GST offences (mostly resulting from fake invoices/frauds) at a glance 777
  • (1) Offences in GST regime
 777
  • (2) GST Evasion, Recovery and Arrests
 778
  • (3) Steps to curb GST Evasion/Offences
 778
20. Clarification on provisions on demand and penalty in CGST law- Fake Invoices 779
Annexure 12.1 Standard Operating Procedure (SOP) for utilising the fake invoice Issuers dataset by SGST authorities — reg 780
Annexure 12.2 Text of Press Releases/Media Reports in practices of tax evasion relating to GST Frauds/Fake or Bogus Invoices/Input Tax Credit Scams 785
Annexure 12.3 Text of CBIC Circular No. 171/03/2022-GST, dated 06.07.2022 in relation to transactions involving fake invoices 837
Annexure 12.4 Text of Rules 46, 46A, 47 and 48 of CGST Rules, 2017 840
Appendix 1 Abbreviations used in the Book 847
Appendix 2 Meaning of Important Legal Maxims 850

About the Author

CA. (Dr.) Sanjiv Agarwal & CA Neha Somani

CA. (Dr.) Sanjiv Agarwal & CA Neha Somani

Dr. Sanjiv Agarwal, M.Com, FCA, FCS, ACIS (UK), D.Litt. (h.c.) aged 63, is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) and a Fellow member of the Institute of Company Secretaries of India (ICSI) besides being an associate member of the Institute of Chartered Secretaries and Administration, London (UK). He is also a post-graduate in Accountancy and Business Statistics from the University of Rajasthan, Jaipur. He has been awarded Doctorate of Philosophy for the title �A Conceptual Approach to Corporate Governance: Preparation for Global Interface� from R.A. Poddar Institute of Management, University of Rajasthan, Jaipur and holds a Diploma in Corporate Governance (PMQ Course) from the ICSI. He has recently been conferred with D.Litt (h.c.) from Commonwealth Vocational University, Kingdom of Tonga. He is also a qualified Insolvency Professional registered with Insolvency and Bankruptcy Board of India (IBBI) and registered on the panel of Independent Director maintained by IICA, Ministry of Corporate Affairs (MCA).

Ms. Neha Somani, B.Com, FCA, PhD (h.c.) is a promising Chartered Accountant in practice having qualified in November 2014. Apart from being a Fellow member of the Institute of Chartered Accountants of India (ICAI), she possesses a PhD degree on the research work done in Goods & Services Tax (GST) from Commonwealth Vocational University, Kingdom of Tonga. Thereafter, since April 2015 she is associated with M/s Agarwal Sanjiv & Company, Chartered Accountants, dealing mainly in Indirect Taxes with a specific focus on Service Tax, Customs and Goods and Services Tax. She has worked in different areas of Indirect Tax which, inter alia, include handling tax advisory, adjudication, litigation, GST audits and training.

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GST Inspection, Search & Seizure
Publisher: Commercial Law Publishers
Pages: 880
Language: English
ISBN: 9788197469152
₹ 1295 Price : ₹ 1895
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