Updated on: Thursday, May 30, 2019, 01:15 AM IST

Indore: CGST, SGST both empowered to take action against traders regd with any of the depts.


Indore : Now, any of the two departments, be it State Goods and Service Tax (SGST) or Central Goods and Service Tax (CGST) department, can carry out raids, check vehicles or take action against a trader on suspicion of tax evasion, regardless of its registration with the particular department. However, in that case the department taking action will have to main correspondence with the department, the firm is being registered with.

GST council has issued a notification in this regard defining the area of jurisdiction of SGST and CGST department.

Following the launch of GST on July 1, this year there was no clarity over the power of carrying out raid and vehicle check attributed to the departments.


Senior tax consultant RS Goyal informed that “Earlier in the VAT Act regime, a trader used to come under the ambit of commercial tax or central excise department depending upon the turnover of a trader and type of tax.

Following implement of the GST the formula of bifurcation of traders was fixed.

As many as 90% traders having annual turnover less than Rs 1.50 crore would come under the jurisdiction of SGST department, while the rest would come under the CGST department. As per the formula, more than 2.25 lakh traders would come under the jurisdiction of SGST department.”


Goyal said that “Following defining the jurisdiction of traders, their routine work like filing of Trans-1 form, GSTR-3B, GSTR-1 and other returns forms and their mistakes, authentication of the claimed input tax rebate would be dealt by the jurisdiction officer. Besides, audit will also be done by the same officer.”

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Published on: Wednesday, December 27, 2017, 10:54 AM IST