Himachal Pradesh GST Act

• Section 3(1) of Himachal Pradesh GST Act 2005

Taxing Authorities

3(1) For carrying out the purposes of this Act, the SG may, by notification, appoint a person to be the Commissioner and such other person with such designations, as it thinks fit.

• Section 21(1) of Himachal Pradesh GST Act 2005

Assessment of Tax

(1) The returns furnished by a dealer shall be duly acknowledged in the manner prescribed and where all the returns relating to any year have been filed and are correct

and complete in material particulars, the dealer shall, subject to the provisions of sub-sec(2), be deemed to have been assessed for that year:

Provided that where the returns are not complete in material particulars, the dealer shall be given an opportunity to complete the same within 15 days of service of the notice.

Explanation:- For the purpose of sub-sec(1) a return shall be deemed to be---

(i) correct, if its version conforms to that of the accounts maintained by the dealer and the account version cannot be impeached by any adverse information available on record till 31st Oct of the following year; and

(ii) complete, in material particulars, if it contains the entire information required to be furnished therein, is correct arithmetically and is accompanied by the statutory or                prescribed lists, documents and proof of payment of the full amount of tax due according to the returns and is duly signed by the dealer.

• Section 61 of Himachal Pradesh GST Act 2005

Audit and Inspection

• The Commissioner or any other Authority as may be authorised by him in this behalf may, for ascertaining the correctness of returns furnished, admissibility of various claims and ITC, on the basis of any prescribed criteria or on random basis, inspect or audit or cause to be audited any of the returns furnished, documents or statutory forms submitted by a dealer, subject to such conditions and in such manner as may be prescribed.

(2) The inspection or audit as required under sub-sec(1), may either be under taken in the office of such Authority or in the business premises, or warehouse, or office of the dealer.

(3) The prescribed authority shall after considering all the evidence produced in the course of proceedings either, --

(a) confirm the self-assessment under sub-sec(1) of sec 21; or

(b) not confirm the self-assessment under sub sec (1) of sec 21 and calculate the amount of tax due from the dealer; or

(c) calculate the amount of tax due from a dealer, if no such assessment has been made:

Provided that if the prescribed authority proposes to rely upon any evidence collected by him in the course of inspection, audit or investigation, the dealer shall, by a notice, be afforded an opportunity of correcting his self assessment within a period not exceeding thirty days and if he fails to rectify his self-assessment, such authority shall re-assess the tax due, under the Act.

• Rule 44 of Himachal Pradesh GST Rules 2005

Scrutiny of returns, inspection and audit of returns accounts, etc.

(1) The Appropriate Assessing Authority shall scrutinize every return of a dealer filed

u/s 16 of the Act. If any mistake is detected in the return upon such scrutiny and the person is found to have paid less tax than that payable as per such return, such authority shall serve a notice upon the dealer concerned directing him to rectify the same and to pay the amount of tax less paid, along with the interest payable u/s 19 of the Act and produce the treasury receipt(s) before him, within the time specified in the said notice:

Provided that if the dealer is found to have paid tax or interest in excess of the amount payable according to such return, the said authority shall inform the same to the dealer by sending a notice within 1 month of completion of such scrutiny.

• If upon receipt of the notice referred to in the sub-rule(1), the dealer complies with the direction made in such notice and furnishes proof of such compliance including furnishing of a copy of the treasury receipt, the Assessing Authority shall make a record of the same and close the scrutiny. If the dealer does not comply with such directions or expresses his disagreement in writing, adducing reasons for such disagreement with the directions made in such notice, the Assessing Authority, unless he accepts such reasons as correct and justified, shall refer the matter to the Assistant Excise and Taxation Commissioner or other officer incharge of the district within a fortnight, recommending initiation of audit u/s 61 of the Act, in respect of such dealer.

• For the purposes of audit of returns, annual statement and accounts, the Commissioner or the appropriate Assessing Authority or any other officer appointed under sub-sec (1) of sec 3 may require any dealer to produce evidence for verification of correctness of any return and any other additional information(s) as may be considered necessary.

(4) The Commissioner shall select, on the basis of the parameters laid down, a certain number of persons in the manner laid down under sub-rule (2) for audit u/s 61, either mechanically or with the use of computers:

Provided that the Commissioner may, upon receipt of information or otherwise, select those persons for audit, who, according to him, are required to be audited.

 (5) The audit shall be performed by the designated officers as a team. Such a team may consist of 1 or more Excise and Taxation Officer, Assistant Excise and Taxation Commissioner or Deputy Excise and Taxation Commissioner, as the Commissioner may deem fit.

(6) For the purpose of audit of returns, annual statement and accounts, the notice shall clearly state the period(s), the date, time and place fixed for such audit. The notice shall provide a period of not less than 10 days for production of account books as specified in the notice.

(7) A person who has been served a notice under sub-rule (2) shall produce on the specified date and time account books as specified in the notice. The audit shall, as far as possible, be conducted on the business premises of the dealer.

(8) During the course of the audit, the officer or authority referred to in sub-rule (1) may require the dealer to afford him the necessary facility to inspect/ verify the account books for the period in the notice. The dealer shall also provide his explanation to the queries asked by such officer or authority.

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