Practical Insights on GST Investigations

The Goods and Services Tax (GST) is a unified tax system introduced to replace the erstwhile fragmented and complex tax system. The core objectives behind its introduction were to:

• Simplify the prevailing tax structure
• Promote better economic integration
• Reduce the cascading effects of the tax system

Practically, its introduction induced positive changes and benefitted the Indian economy in many ways, including uniformity in taxation, introduction of an online taxation system, an increase in revenue share for central and local governments, and more. However, recently, cases regarding GST evasion have witnessed a sharp spike.

To raise awareness and share practical insights on detecting discrepancies to curtail GST evasion, speaker and subject-matter-expert Saket Patawari, Executive Director, Indirect Tax, Nexdigm, spoke at an event organized by UBS Forums Pvt. Ltd. on ‘Practical Insights on GST Investigations’.

Saket commenced the event by providing an overview of the subject. He then stressed on who can conduct an inspection and stated the prerequisite conditions to initiate an inspection. Furthermore, Saket also elaborated at length about what items/goods can be searched and seized during the inspection process as well as how long the seized items/goods could be retained.

Besides this, he also covered the conditions under which the seized items/goods will be returned while stating the power and responsibilities that the Proper Officer can exercise during the inspection and investigation process. Saket also stated the conditions under which the suspected taxpayer can be summoned and cited the guidelines before issuing a summon.