Circular No.16/2022 dated 22 December 2022

Key Pointers –

• On return of goods purchased by authorized officer to check the issue of tax invoice or bills of supply by such taxable person, it shall refund the amount paid towards the goods after cancelling any tax invoice / bill of supply issued earlier.
• The Joint Commissioners (Territorial) / (Intelligence) shall conduct test purchase to check the issue of tax invoice or bill of supply by registered person, to check the issue of tax invoices or bills of supply by such registered person, and on return of goods so purchased by such officer, such taxable person or any person in charge of the business premises shall refund the amount so paid towards the goods after cancelling any tax invoice or bill of supply issued earlier. 
• The Joint Commissioners (Territorial) / (Intelligence) shall maintain a Register along with cash book and subsidiary finance registers for the test purchase operations and proper acknowledgement shall be obtained from the officers concerned, for receipt and return of test purchase amount. Further the details of the denomination of cash issued for the test purchase operations and the Currency Number shall also be noted in the said Register.
• A periodical Report on the test purchases conducted during the month, shall be submitted to the commissioner, on or before 5th of succeeding month, in order to monitor the outcome of test purchases.
• Generation of DRC-07 has to be enabled in the Back Office Portal, for the authorized officials conducting test purchase, in order to raise a demand, in the case of imposition of penalty.
• The details of the offences booked and the amount collected as penalty, in respect of test purchase operations, should be linked to the tax payer's profile and made available under a separate head "Test Purchase".
• The Joint Commissioner (IT), shall provide necessary assistance in the back office system for this item of work and provision of MIS reports.