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 liability on unaccounted goods may be demanded from buyer and seller, with interest and penalties possible.
Departmental seizure of goods without invoices can lead to show-cause notices against supplier and recipient, recovery of GST from the purchaser, charge of interest for delayed tax, and imposition of penalties where offences are established. Seized goods may be provisionally released on bond and security or on payment of tax, interest and penalty. Valuation for tax purposes is by market value; for MRP goods the MRP is treated as GST-inclusive and tax is calculated by reverse-working, subject to admissible abatement and factual investigation.