General and Special Powers of GST Officers under GST

December 16, 2021

Every GST taxpayer must be aware of the powers of GST officers so that they can approach the appropriate officer at the appropriate time. This would also help them avoid wasting valuable time by approaching the wrong GST officer, as well as any illegal exploitation by the GST authorities. It also safeguards the GST taxpayer from any erroneous investigation and assessment. The powers of officers under the GST Act will be discussed in this blog.

General and Special Powers of GST Officers under GST Act

Similar to the powers granted to various officers under other sorts of laws, the GST law also granted unique powers to officials.

GST officers have been given powers under Section 5 of the CGST Act, 2017, which they may exercise subject to the criteria and limitations established by the board. It also allows a commissioner to assign his authority to any subordinate officers.

“What are the powers of SGST officers?” is a question that may arise. The answer is that all powers granted to CGST officers under the CGST Act will be granted to SGST officers mutatis mutandis under the SGST Act, 2017.

General Powers of GST officer under GST Act

Here’s a summary of situations where the GST officer might have to use his or her General powers under Section 155 of the CGST Act:

Any goods and services are provided without the need for an invoice.
Intentionally declares the supply’s description incorrectly on the invoice in order to avoid paying taxes.
To claim ITC or a refund without the actual supply of goods and services by issuing e-invoices or bills (shipping or air-way).
Collects any sum as tax but fails to deposit it to the credit of the proper government within three months of the date on which payment is due.
Takes use of or makes use of Input Tax Credit without receiving goods or services in full or in part.

The above-mentioned rights are the general powers bestowed on GST officers by the GST Act, and there are also additional powers conferred on appropriate officers by the GST Act. However, it is critical that GST officers exercise these general powers with caution.

Special Powers of GST Officer under GST Act

Inspection Authority

Any proper officer, not below the rank of Joint Commissioner, may be authorized by the GST officer to inspect any taxable person’s, transporter’s, business owner’s, warehouse operators, or other person’s business place. However, the person reviewing the above must have written permission from the officer and must hold the level of Joint Commissioner or higher. They have the authority to inspect their place of business, goods, and supplies, as well as transportation.

Search and Seizure Power

Suppose he feels that any items, documents, or information relevant to the proceedings are hidden or not disclosed after seeking such information. In that case, the GST officer not below the rank of Joint Commissioner has the authority to search and seize such commodities. It may also empower the appropriate police to search and seize such objects, papers, and information at any time and in any location. The GST officials have the authority to search and seize any commodities, documents, or anything that will aid in legal actions.

It should be remembered that any officer who does not have the level of Joint Commissioner can only conduct a search and seizure with the permission of a higher-ranking officer.

Arresting Power

GST officials have the authority to arrest those who do not follow the norms of his law, or if a taxpayer commits an offense, they have the authority to request all documentation and evidence of goods/services if necessary.

Assume the Commissioner has reasonable grounds to think that a taxpayer has committed a violation. In that case, he has the authority to order the arrest of that person by any appropriate officer. The detained person must be informed of the reason for his detention and must appear before a magistrate within 24 hours of his arrest.

Power to Compel People to Testify and Produce Documents

The commission may empower any GST officer acting on his behalf to summon any individual whose presence is required to provide testimony, produce a document, or otherwise participate in any proceedings or inquiries that such officer is conducting for any of the purposes of this Act.

Powers of Revision

The Chief Commissioner or a Commissioner acting on his initiative or based on information obtained by him may request and inspect any proceeding’s record. If he believes a judgment or order made under this Act by a subordinate official is incorrect, he may issue an order of inquiry or alter or revise the decision or orders. However, such taxpayers will be given an opportunity to be heard before any action is taken.

Power to Inspect Place of Business

The GST officer approved by the CGST’s Additional/Joint Commissioner has access to any registered taxable person’s place of business. GST officials are given the authority to conduct audits, examinations, and checks in order to defend revenue interests. As a result, the GST officer has the authority to inspect books of accounts, computers, papers, computer programs or software, and other items he deems essential at such locations.

The Authority to Empower Officers to Enforce the Law

GST officers have a variety of authorities to ensure that GST is correctly implemented in India and that tax fraud is reduced. However, these powers are occasionally abused, and in light of this, we can conclude that absolute power in anyone’s hands corrupts him completely.

The Ability to Impose a Penalty

If the proper officer determines that the person is subject to a penalty that is not covered under the Act. The proper officer may issue an order levying the penalty after providing the person an opportunity to be heard under the CGST Act, 2017.

Ability to Compile Data

If the Commissioner authorizes it, the GST officer may collect data on his behalf if he believes it is required for the administration of the Act. The authority may demand that all affected taxpayers provide all GST-related information, such as GST returns.

If the Commissioner authorizes it, the GST officer may collect data on his behalf if he believes it is required for the administration of the Act. The authorized person may demand that all affected taxpayers provide all GST-related information, such as GST returns.

The above-mentioned rights are the additional powers bestowed on GST officers by the GST Act. However, it is critical that GST officers exercise these additional powers with caution.