Unaccounted stock

[Rajesh Kumar]

Sir/Madam

During the gst search, the department seized some goods for which party could not produce any invoices of purchase. Please inform how they can calculate tax on these goods as gst is applicable on the sale of goods when party will sale these goods he will pay .
Can department charge GST on the purchase made without bills ? If yes, Can they charge interest and penalty there on ?

AI Summary

GST Applicable on Unaccounted Stock: Seized Goods Without Invoices Subject to Charges, Interest, and Penalties Under CGST Act During a GST search, goods were seized because the party could not provide purchase invoices. The discussion explores whether GST can be charged on such unaccounted stock. It is confirmed that GST can be demanded on purchases without bills, along with interest and penalties under the CGST Act if charges are proven. The method of GST calculation on seized goods depends on the market value and specific provisions, such as MRP inclusivity of taxes. The conversation highlights the seriousness of purchasing goods without invoices and suggests consulting an expert for complex cases.