Site navigation

The proper officer has reasons to believe one of the following about a taxable person. Which can support a written authorisation for inspection of its place of business under section 67(1) of the…

Question and options

The proper officer has reasons to believe one of the following about a taxable person. Which can support a written authorisation for inspection of its place of business under section 67(1) of the CGST Act, 2017?

  1. It has filed its annual return after the due date

  2. Its turnover will exceed the composition limit next year

  3. It has filed its outward supply return one month late

  4. It has claimed input tax credit in excess of its entitlement

Answer and explanation

Correct answer: D - It has claimed input tax credit in excess of its entitlement

Section 67(1)(a) of the CGST Act allows the authorising officer to order inspection where there are reasons to believe that a taxable person has suppressed transactions, claimed input tax credit in excess of entitlement, or contravened the law to evade tax. Late filing of returns and expected turnover growth are not grounds in themselves; late filing is met by late fees and other remedies.

Practice for these exams

Related exam syllabi

More solved explanations in GST - levy, supply, input tax credit, registration & returns