During the GST search, 50 lacs were recovered from the house of the proprietor. What implication can he face? What coercive action department can take ? What party to do ?
Department insisting to deposits the same as duty of GST. Should he agree ? In my view, Indirectly department is also converting black money to white money by adjusting same as duty amount. Is there any implication for this adjustment?
GST Search Uncovers 50 Lakhs; Tax Department Demands Deposit, Raises Concerns Over Black Money Legitimacy During a GST search, 50 lakhs were recovered from a proprietor's residence, raising questions about potential legal implications and actions by the tax department. The department is urging the proprietor to deposit this amount as GST duty, but concerns were raised about whether this effectively converts black money to white. Experts advised that the burden of proof lies with the proprietor to demonstrate the money's legal origin. They emphasized that paying taxes with such funds does not legitimize them if they are unaccounted for, and legal consequences will follow. The matter will also be referred to the Income Tax department. (AI Summary)
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