QUESTION

GST Search was conducted in assessee premises u/s 67(2) of CGST Act. Can assessee ask for “reasons to believe” during the search proceedings and if yes then pl. provide the section or supporting documents. Is it mandatory to provide “reasons to believe”by department to assessee if asked for.

ANSWER

Facts of the Case:
GST Search was conducted in assessee premises u/s 67(2) of CGST Act. Can assessee ask for “reasons to believe” during the search proceedings. Is it mandatory to provide “reasons to believe” by the department to assessee if asked for.

Reply

There is no clarification given in CGST Act or Rules regarding right of the assessee to ask for 'Reason To Believe' before/during the conduct of search. So we have to find out practical answer.
If the search team is explaining a 'Reason To Believe' before/during the search is conducted, the assessee can manipulate the evidences and records or may raise alarm to other parties involved in same scam or fraud.
Accordingly, the assessee has no right to ask for 'Reason To Believe'. It is an internal documentation, should be done by the department to assure that the field formation do not create panic or harassment. A search warrant is issued to the search team by the commissioner( or designated officer).
The assessee can ask for search warrant before permitting the search team to conduct the search. (Reply dt. 18/09/2021)