GST Jamku AIAccess to business premises.
Section 71(1)
Any officer under this Act, authorised by the proper officer not below the rank of Joint Commissioner, shall have access to any place of business of a registered person to inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
According to this section, any officer empowered by the Act, and authorized by a proper officer not below the rank of Joint Commissioner, has the right to access any business premises of a registered person. The purpose of this access is to examine various items, including books of account, documents, computers, computer programs, and computer software (whether installed or not), among other things.
Scope of Inspection
The inspection is conducted for the explicit purpose of carrying out activities such as audit, scrutiny, verification, and checks. These measures are essential to safeguard the interest of revenue. In simpler terms, it ensures that businesses are operating in compliance with the regulations in place, preventing any potential misuse or fraud that may harm government revenue.
Conclusion
Granting officers this power underscores the commitment to maintaining the integrity of financial transactions and ensuring that businesses contribute their fair share to government revenue. The provision acts as a safeguard against potential malpractices, emphasizing the importance of accountability and transparency in business operations.
Section 71(2)
Every person in charge of place referred to in sub-section (1) shall, on demand, make available to the officer authorised under sub-section (1) or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66—
(i) such records as prepared or maintained by the registered person and declared to the proper officer in such manner as may be prescribed;
(ii) trial balance or its equivalent;
(iii) statements of annual financial accounts, duly audited, wherever required;
(iv) cost audit report, if any, under section 148 of the Companies Act, 2013 (18 of 2013);
(v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (43 of 1961); and
(vi) any other relevant record,
for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a period not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by the said officer or the audit party or the chartered accountant or cost accountant.
In this section, it is stated that anyone in charge of a place mentioned in sub-section (1) must provide certain documents when asked by the authorized officer, audit party appointed by the proper officer, or a cost accountant/chartered accountant nominated under section 66.
The required documents include:
- Registered Person's Records
- Documents prepared or maintained by the registered person and declared to the proper officer as prescribed.
- Trial Balance or Equivalent
- Submission of trial balance or its equivalent.
- Annual Financial Accounts
- Submission of duly audited statements of annual financial accounts, whenever necessary.
- Cost Audit Report
- If applicable, the cost audit report under section 148 of the Companies Act, 2013 (18 of 2013).
- Income-tax Audit Report
- If applicable, the income-tax audit report under section 44AB of the Income-tax Act, 1961 (43 of 1961).
- Other Relevant Records
- Any other relevant record deemed necessary.
Timely Scrutiny
These documents must be made available for scrutiny within fifteen working days from the day of the demand. If needed, the officer, audit party, or the chartered accountant/cost accountant may allow an extended period for submission.