The Tamil Nadu Government issued a circular in relation to invoking Section 67(12) of Tamil Nadu GST Act, 2017 for test purchase as decoy buyer by tax officers from suppliers of evasion prone commodities/sectors – cement, tiles, iron and steel, jewelry, timber, auto spares, edible oil, medical shops, groceries, construction materials, bakery products, FMCG, hotels, educational institutions, rental service, etc.
As per the provision, the Commissioner or an officer authorised by him may cause the purchase of any goods or services or both by any person authorised by him from the business premises of any taxable person, to check the issue of tax invoices or bills of supply by such taxable person, and on return of goods so purchased by such officer, such taxable person or any person in charge of the business premises shall refund the amount so paid towards the goods after canceling any tax invoice or bill of supply issued earlier.
This is in order to ensure compliance in issuing tax invoice/bill of supply by the taxable person and to prevent composition taxable person/unregistered persons from collecting tax from the customers, the circular said.
The circular issued on Monday laid down the Standard Operating procedure (SOP) on delegation of powers, funds required and Controller of funds, selection of cases, reporting procedure, etc.
CIRCULAR NO: 5/2022
DATE: 07/03/2022
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