Authorities can initiate audit and investigation simultaneously in GST

  • GST
  • Case Law
  • High Court

Suresh Kumar P.P. v. Deputy Director, Directorate General of GST Intelligence 

Fact of the Case 

  • The petitioners were Managing Director and Director of a Media Company engaged in providing cable services to its customers as Multi Service Operator under the regulation issued by the Telecom Regulatory Authority of India (TRAI).  
  • The GST Authorities initiated search and seizure proceedings against them. Authorities issued notice and further issued an order of seizure.  
  • Thereafter the GST Authorities issued notice to petitioners under section 65 for auditing of books. The petitioners submitted that they had never defaulted any of the statutory responsibilities. They submitted a writ petition seeking relief in this respect.


  • The Honorable High Court observed that provisions of the CGST Act, 2017 like inspection of the premises, powers of arrest and summons to produce documents have been incorporated with the aim to prevent evasion of GST at the hands of the unscrupulous taxpayers.  
  • The process of auditing the books and ordering the seizure of documents would help the department to collect records in the documents and at the time of audit of the account. 
  • Therefore, it would be too premature to comment upon the act of the GST Authorities and write a petition accordingly dismissed.