The traders, particularly those who function on a low scale, would seek that the State Government leave the practice test purchase that the commercial tax department performed, under provisions of the Goods and Services Tax.
In Tiruchi district, the department performed Test Purchases at about 165 outlets over a 3-week period complying with the issuance of rules at the beginning of last month under sub-section 12 of Section 67 of the TNGST Act, 2017.
The Commercial Taxes Department operates the purchase from the business premises of any taxable person, to verify the problem of GST tax invoices or bills of supply. On return of goods, the amount paid for the goods needed to be refunded after the cancellation of the tax invoice or bill of supply issued before.
Field officers in Intelligence Wing perform the test purchase beneath the authority under Section 168 of the TNGST Act, 2017, to ensure compliance with section 31 which mandates the issuance of tax invoice or a bill of supply for every supply of goods or services or both.
“Though as per the Standard Operating Procedure, the Test Purchase should be made on rare occasions, where there was a strong proof for evasion of tax, it was conducted even on those traders who did not come under the ambit of GST,” V. Sridhar, district unit president of Tamil Nadu Vanigar Sangangalin Peramaippu articulated.
Post-intervention of Commercial Taxes Ministry, the traders are free now for deference to the representations made by trade organizations, Mr Sridhar articulated.
State-wide protests would be performed via the traders in November, specifying the test purchase which results in the imposition of fines up to Rs 20,000 was not being clarified since the same would already furnish the taxes for their original buying.
Tamil Nadu Vanigar Sangangalin Peramaippu’s stand for the project is needed to be taken on the companies that function on a larger scale, or the companies that export the products at the State borders, on small-scale traders who operate on meagre margins.
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On the same basis, these exercises were not prevalent in the other states, and the traders considered that the commercial taxes department shall not revisit test purchases in the coming time.
- TN GST Circular No. 5/2022 – Guidelines for Conducting ‘Test Purchase’ by the Officers
- TN GST Circular No. 16/2022 – New Guidelines for Conducting ‘Test Purchase’
