Quick Summary
Traders across Gujarat have levelled serious allegations against officials from both the Central and State GST departments, accusing them of misusing Section 67(1) of the GST Act to harass, intimidate, and extort money under the guise of inspections and surprise visits. According to multiple complaints, GST officials have been entering business premises without clearly stating the legal basis of their action. While Section 67(1) of the GST Act permits officers to inspect a place of business bas
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FAQ :
Traders in Gujarat are accusing GST officials of misusing Section 67(1) of the GST Act to harass, intimidate, and extort money under the guise of inspections and surprise visits.
Officials are reportedly entering business premises without clearly stating the legal basis, conducting actions that resemble full-scale raids and seizures (Section 67(2)) rather than simple inspections, and using vague warrants.
Traders report that officials allegedly confiscate mobile phones, access accounting records, and issue informal demands for large payments, actions they claim border on extortion.
The Federation suggests mandatory specification of legal provisions in warrants, allowing tax consultants to accompany traders during inspections, educational initiatives on inspection vs. seizure, and encouraging supportive officer behaviour.
Traders warn that the alleged misuse of legal provisions is damaging trust in the GST system and could deter voluntary compliance if not urgently addressed.
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