Section 153 of the Central Goods and Services Tax Act, 2017 deals with the power of a GST officer to take assistance from an expert when the nature or complexity of a case requires specialised knowledge.
GST proceedings can involve complicated issues relating to accounting, valuation, taxation, technology, engineering, product classification, information systems, business processes and other technical matters. A proper officer may not always have specialised knowledge in every such area. Section 153 therefore allows an eligible officer to obtain assistance from an expert when this is necessary, particularly having regard to the nature and complexity of the case and the interest of revenue.
The provision is short, but it has practical importance because it enables the GST administration to obtain specialised assistance during scrutiny, inquiry, investigation or other proceedings.
What Is Section 153 of the CGST Act?
Section 153 is titled “Taking assistance from an expert.”
The section provides:
Any officer not below the rank of Assistant Commissioner may, having regard to the nature and complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry, investigation or any other proceedings before him.
Although the wording is brief, it contains several important elements:
- the power is available to an officer not below the rank of Assistant Commissioner;
- the officer must consider the nature and complexity of the case;
- the interest of revenue is also relevant;
- assistance may be taken from any expert;
- assistance can be obtained at any stage of the specified proceedings; and
- the provision covers scrutiny, inquiry, investigation and any other proceedings before the officer.
Purpose of Section 153
The GST law covers a wide range of businesses and transactions.
A GST case may involve a specialised issue that cannot be properly examined only through ordinary tax records.
For example, a proceeding could involve:
- technical characteristics of a product;
- classification of specialised machinery;
- valuation of complex transactions;
- accounting systems;
- computer software;
- electronic records;
- engineering matters;
- manufacturing processes;
- financial analysis;
- technical specifications; or
- other specialised information.
Section 153 allows the eligible officer to obtain assistance from an expert where the officer considers such assistance necessary having regard to the case.
The CBIC’s GST FAQ specifically explains that Section 153 can be used where the department encounters complex accounting software and needs assistance from an expert.
Who Can Take Assistance Under Section 153?
The power under Section 153 is available to an officer not below the rank of Assistant Commissioner.
This means the provision does not give the power to every GST officer irrespective of rank.
The statutory threshold is:
Assistant Commissioner or above.
Therefore, when applying Section 153, the rank of the officer exercising the power is an important consideration.
What Does “Officer Not Below the Rank of Assistant Commissioner” Mean?
The expression means that an officer must be at least of the rank of Assistant Commissioner to exercise the power specifically provided under Section 153.
Officers of higher rank can therefore fall within the provision.
The section is concerned with the officer who is conducting or dealing with the relevant proceedings and who considers expert assistance necessary.
Who Is an “Expert”?
Section 153 uses the expression “any expert” but does not prescribe a single category or profession of expert.
This allows the nature of the expert assistance to correspond with the particular case.
Depending on the issue, specialised assistance could potentially involve a person having appropriate expertise in areas such as:
- accounting;
- information technology;
- engineering;
- valuation;
- taxation;
- finance;
- manufacturing;
- computer systems;
- technical products; or
- another specialised field relevant to the proceeding.
The exact identity and expertise of the person would depend on the nature of the case.
The statutory wording does not restrict expert assistance to one particular professional designation.
Why Can an Expert Be Needed in GST Proceedings?
GST administration involves much more than checking tax invoices and returns.
Modern businesses may use sophisticated systems and operate complicated commercial arrangements.
For example, a company may use an enterprise resource planning system containing millions of transactions.
If the officer needs to understand:
- how transactions are recorded;
- how data is generated;
- how invoices are linked;
- how tax amounts are calculated; or
- how accounting entries are processed,
specialised technical assistance may be useful.
The CBIC FAQ specifically gives the example of complex accounting software and states that Section 153 allows the department to take assistance from an expert at any stage of scrutiny, inquiry, investigation or other proceedings.
Nature and Complexity of the Case
One of the important conditions in Section 153 is that the officer may take expert assistance having regard to the nature and complexity of the case.
This indicates that expert assistance is connected with the characteristics of the particular case.
A simple case may not require specialised assistance.
A technically complicated case, however, may require the officer to obtain assistance from someone with relevant expertise.
Example
Suppose a GST investigation concerns a highly specialised industrial machine.
The correct tax classification depends partly on technical characteristics of the machine.
The officer may consider it necessary to obtain expert assistance to understand those technical characteristics.
In such circumstances, Section 153 provides the statutory basis for taking such assistance.
Interest of Revenue
Section 153 also requires the officer to have regard to the interest of revenue.
Therefore, the statutory test is not simply whether an issue is technically complicated.
The officer must consider both:
- the nature and complexity of the case; and
- the interest of revenue.
The provision therefore connects expert assistance with effective examination of GST matters where specialised knowledge may be relevant to the revenue implications of the case.
At What Stage Can Expert Assistance Be Taken?
Section 153 uses broad language regarding timing.
It states that assistance may be taken “at any stage” of:
- scrutiny;
- inquiry;
- investigation; or
- any other proceedings before the officer.
This gives the provision considerable procedural flexibility.
Expert assistance does not have to be obtained only at the beginning of a proceeding.
It may be obtained when the need for specialised knowledge becomes apparent during the proceeding.
Expert Assistance During Scrutiny
Scrutiny involves examination of GST returns and related information.
A scrutiny matter could sometimes involve technical or specialised questions.
For example, a return may show an unusual pattern of transactions that requires an understanding of a taxpayer’s accounting or information system.
If the case is sufficiently complex and the statutory conditions are satisfied, Section 153 allows an eligible officer to obtain expert assistance.
Expert Assistance During Inquiry
An inquiry may involve examination of specific transactions or factual circumstances.
For example, the officer may need to understand the nature of a specialised service or the operation of a technical process.
Expert assistance can help the officer understand the relevant technical facts while conducting the inquiry.
Expert Assistance During Investigation
Section 153 expressly includes investigation.
GST investigations may involve complicated transactions, electronic records, business structures, valuation issues or technical products.
Where the officer considers expert knowledge necessary, assistance may be taken under Section 153.
The section therefore supports specialised examination during investigation without requiring the officer to personally possess expertise in every technical field.
Expert Assistance During Other Proceedings
The provision does not stop with scrutiny, inquiry and investigation.
It also covers “any other proceedings before him.”
This gives Section 153 a broad application.
The relevant proceedings must, however, be proceedings before the officer and the statutory requirements concerning the nature and complexity of the case and interest of revenue remain relevant.
Section 153 and Technical Knowledge
The main practical value of Section 153 is that GST officers can deal with specialised matters without being expected to independently master every technical discipline.
Consider a manufacturing business producing specialised equipment.
The officer may understand GST law but may not possess the engineering knowledge necessary to understand every technical feature of the equipment.
An appropriate expert can assist in understanding the technical aspects relevant to the GST proceeding.
The expert’s role is therefore connected with the specialised subject matter of the case.
Section 153 and Accounting Software
Accounting and enterprise software is specifically relevant to modern GST administration.
Businesses may use:
- ERP systems;
- cloud accounting systems;
- customised accounting software;
- automated invoicing systems;
- inventory management software; and
- integrated financial platforms.
The CBIC’s GST FAQ uses complex accounting software as an example of a situation in which expert assistance under Section 153 may be relevant.
For example, an expert may help explain how data moves between different modules or how particular transactions are recorded in the system.
Section 153 and Electronic Records
Electronic records can be highly important in GST proceedings.
A taxpayer’s electronic system may contain:
- sales data;
- purchase data;
- stock records;
- invoice records;
- accounting entries;
- customer information;
- supplier information; and
- tax calculations.
Where understanding the technical structure or operation of the system is necessary, expert assistance may help the officer interpret the information relevant to the proceeding.
Section 153 and Valuation
GST valuation can sometimes involve complicated commercial arrangements.
For example, determining the relevant value may require examination of:
- related-party transactions;
- bundled arrangements;
- non-monetary consideration;
- specialised assets;
- transfer pricing-related information; or
- technical valuation data.
Where specialised valuation knowledge is required, the officer may consider taking assistance from an appropriate expert, subject to Section 153.
Section 153 and Classification of Goods
Classification can sometimes depend on detailed technical characteristics.
For example, specialised machinery, chemicals, medical equipment, electronic products or industrial components may require technical understanding.
An expert may assist the officer in understanding the product’s:
- composition;
- function;
- design;
- manufacturing process;
- technical specifications; or
- intended use.
The tax officer can then consider the technical information together with the applicable GST law.
Section 153 Does Not Transfer the Officer’s Legal Responsibility
Taking assistance from an expert does not mean that the expert becomes the GST adjudicating authority.
The statutory power is given to the officer.
The expert provides assistance in relation to the relevant specialised matter.
The officer remains responsible for exercising the powers and functions assigned to him under the GST law.
This distinction is important.
Simple Example
An engineering expert may explain the technical characteristics of a machine.
The expert does not thereby decide the final GST classification as a matter of law.
The technical assistance can form part of the material considered by the officer in applying the GST provisions.
Expert Opinion Is Different From the Final GST Decision
An expert may provide technical assistance, but GST liability ultimately has to be determined under the applicable law by the competent authority.
For example:
Expert: Explains the technical nature of a product.
GST officer: Applies the relevant GST provisions to the facts and determines the issue within his statutory authority.
Therefore, Section 153 should not be interpreted as allowing an expert to replace the statutory decision-making function of the GST officer.
Section 153 and Taxpayer Rights
Section 153 primarily gives a power to the GST administration.
It does not, by itself, create a separate tax liability for the taxpayer.
If expert assistance is used during a proceeding, the taxpayer’s substantive rights under the relevant GST provisions continue to apply.
Depending on the nature of the proceeding, the taxpayer may have statutory rights relating to:
- notice;
- opportunity of hearing;
- submission of documents;
- response to findings;
- appeal; and
- other procedural safeguards.
The exact rights depend on the particular proceeding and statutory provision under which it is conducted.
Example – Manufacturing Process
Suppose a manufacturer produces a specialised industrial product.
The GST officer is examining the classification and tax treatment of the product.
The taxpayer provides technical literature, but the officer requires further specialised understanding of the manufacturing process.
An expert in the relevant technical field may assist the officer in understanding:
- raw materials;
- manufacturing stages;
- product characteristics;
- technical functions; and
- intended use.
The officer can then consider this information while dealing with the GST issue.
Example – Software System
Suppose a large company maintains its sales and tax records through a customised ERP system.
During an inquiry, the GST officer needs to understand how the company’s system generates invoices and records transactions.
If the system is complex, the officer may take assistance from an appropriate expert under Section 153.
The expert could help explain the system architecture or transaction flow relevant to the proceeding.
Example – Technical Valuation
Suppose a GST matter involves a specialised piece of equipment for which determining the relevant value requires technical expertise.
The officer may obtain assistance from a suitable expert to understand the technical and valuation aspects.
The officer would then consider the expert’s assistance along with the applicable GST provisions and other evidence.
Section 153 and Section 65 – Audit
Section 65 deals with audit by tax authorities.
Section 153 is not an audit provision.
However, if an officer dealing with an audit-related proceeding or another proceeding covered by Section 153 encounters a technically complex matter, the statutory conditions of Section 153 may allow expert assistance.
Therefore:
Section 65 = Audit by tax authorities
Section 153 = Power to take expert assistance
The two provisions deal with different subjects.
Section 153 and Section 66 – Special Audit
Section 66 deals with a special audit in specified circumstances involving a Chartered Accountant or Cost Accountant nominated by the Commissioner.
Section 153 is different.
Under Section 153, an eligible officer may take assistance from an expert having regard to the nature and complexity of the case and interest of revenue.
A special audit under Section 66 is a separate statutory mechanism with its own conditions and procedure.
Therefore, expert assistance under Section 153 should not automatically be treated as a special audit under Section 66.
Section 153 and Section 67 – Search and Seizure
Section 67 deals with inspection, search and seizure.
Section 153 does not independently authorise search or seizure.
Instead, it provides a mechanism for obtaining expert assistance during scrutiny, inquiry, investigation or other proceedings.
Therefore, the existence of Section 153 does not itself give an officer a power to search premises or seize goods or documents.
Any search or seizure must be supported by the relevant statutory provision and its applicable conditions.
Section 153 and Section 70 – Summons
Section 70 deals with the power of the proper officer to summon a person to give evidence or produce documents or other things in an inquiry.
Section 153 deals with obtaining assistance from an expert.
These provisions therefore serve different purposes.
| Provision | Main purpose |
|---|---|
| Section 70 | Summoning persons and obtaining evidence/documents |
| Section 153 | Taking assistance from an expert |
| Section 65 | Audit by tax authorities |
| Section 66 | Special audit |
| Section 67 | Inspection, search and seizure |
Section 153 and Section 154
Section 154 immediately follows Section 153 and deals with the power to take samples.
Section 153 allows an eligible officer to take assistance from an expert.
Section 154 allows the Commissioner or authorised officer to take samples of goods where considered necessary and requires a receipt for samples taken.
The two sections can therefore be relevant to technically complex goods-related matters, but they provide different powers.
Section 153 and Section 151
Section 151 deals with the power to call for information.
Section 153 deals with expert assistance.
An officer may obtain information under the relevant provisions and, where a matter is technically complex and the statutory conditions are met, may also take assistance from an expert.
These powers serve different purposes within the GST administration.
Important Words in Section 153
The wording of Section 153 contains several important expressions.
“Any officer not below the rank of Assistant Commissioner”
This identifies the officer who can exercise the power.
“Having regard to”
This indicates that the officer must consider the relevant statutory factors.
“Nature and complexity of the case”
This relates to the characteristics and technical or factual complexity of the particular matter.
“Interest of revenue”
The officer must also consider the revenue implications.
“Take assistance of any expert”
The provision permits specialised assistance rather than restricting the officer to his own knowledge.
“At any stage”
The power is available during the relevant proceeding when expert assistance is required.
“Scrutiny, inquiry, investigation or any other proceedings”
The scope is broad and is not limited to one particular type of GST proceeding.
Is Expert Assistance Mandatory?
No.
Section 153 is an enabling provision.
It states that an eligible officer may take assistance from an expert.
Therefore, the provision does not require an expert to be appointed in every GST case.
The need for expert assistance depends on the circumstances of the particular case.
Is an Expert Required in Every Complex Case?
Not necessarily.
The section does not state that every complex case must involve an expert.
It gives an eligible officer the power to obtain assistance where, having regard to the nature and complexity of the case and the interest of revenue, such assistance is considered appropriate.
The decision depends on the particular proceedings.
Can the Expert Decide the Tax Rate?
Section 153 does not transfer the officer’s statutory decision-making power to the expert.
An expert may assist with specialised factual or technical matters, but the GST officer must exercise the statutory function under the relevant GST provisions.
For example, an expert may explain the technical characteristics of a product, while the officer determines the applicable GST treatment under the law.
What Should a Taxpayer Do if Expert Assistance Is Used?
A taxpayer should focus on the underlying GST proceeding and maintain proper records.
Practical steps include:
- Understand the issue being examined.
- Maintain relevant agreements and records.
- Provide accurate technical information.
- Keep product specifications where relevant.
- Preserve accounting and electronic records.
- Respond to lawful requests within the applicable time.
- Review any findings communicated during the proceeding.
- Use the available statutory response or appeal mechanism where applicable.
The use of an expert does not by itself establish that the taxpayer has violated GST law.
Key Differences Between Section 153 and Section 66
| Basis | Section 153 | Section 66 |
|---|---|---|
| Subject | Assistance from an expert | Special audit |
| Who initiates | Eligible officer | Proper officer with required approval under Section 66 |
| Expert | Any appropriate expert | Chartered Accountant or Cost Accountant nominated under Section 66 |
| Main purpose | Assist officer in complex proceedings | Special audit of accounts in specified circumstances |
| Scope | Scrutiny, inquiry, investigation or other proceedings | Special audit under statutory conditions |
| Separate audit report | Not the defining feature | Yes, special audit mechanism |
Section 153 therefore should not be confused with the special audit mechanism under Section 66.
Why Section 153 Matters for Businesses
For businesses, Section 153 is particularly relevant where GST questions involve specialised information.
A modern tax proceeding may require understanding of systems and transactions that go beyond conventional accounting.
Examples include:
- technology businesses;
- software companies;
- pharmaceutical manufacturers;
- engineering companies;
- automobile manufacturers;
- chemical businesses;
- financial institutions;
- infrastructure companies; and
- businesses using sophisticated ERP systems.
In such cases, expert assistance can help the GST administration understand technical information relevant to the proceeding.
Key Takeaways of Section 153
Section 153 can be summarised through the following points:
- Section 153 deals with taking assistance from an expert.
- The power is available to an officer not below the rank of Assistant Commissioner.
- The officer may take expert assistance where appropriate.
- The officer must have regard to the nature of the case.
- The officer must consider the complexity of the case.
- The interest of revenue is also a statutory consideration.
- The expert can provide specialised assistance to the officer.
- The power can be used at any stage of the relevant proceeding.
- Scrutiny is expressly covered.
- Inquiry is expressly covered.
- Investigation is expressly covered.
- The provision also covers any other proceedings before the officer.
- Section 153 is not itself a provision for determining tax liability.
- An expert does not replace the statutory decision-making function of the GST officer.
- The section does not give the expert the power to independently determine GST liability.
- The provision is different from the special audit mechanism under Section 66.
- It is also different from the summons power under Section 70.
- Section 153 can be particularly useful in technically complex GST matters.
- CBIC’s GST FAQ specifically recognises complex accounting software as an example where expert assistance may be used.
- The provision helps the GST administration obtain specialised knowledge when dealing with complicated cases.
👉 Read More → Section 153 – Taking assistance from an expert
Conclusion
Section 153 of the CGST Act provides an important mechanism for dealing with technically complex GST proceedings.
Under this provision, an officer not below the rank of Assistant Commissioner may, having regard to the nature and complexity of the case and the interest of revenue, take assistance from an expert at any stage of scrutiny, inquiry, investigation or any other proceedings before the officer.
The provision recognises that GST matters can involve specialised areas such as accounting software, technology, engineering, manufacturing processes, valuation and technical product characteristics. The CBIC’s GST FAQ specifically explains that expert assistance can be taken where complex accounting software or similar technical issues need to be examined.
Importantly, Section 153 does not make the expert the decision-making authority. The expert provides assistance, while the GST officer continues to exercise the statutory powers and functions assigned under the GST law.
Section 153 should also be distinguished from Section 66, which provides a separate mechanism for special audit, and Section 70, which deals with summons during an inquiry. Section 153 is specifically concerned with obtaining specialised expert assistance during GST proceedings.
For taxpayers, the practical importance of Section 153 is that a GST proceeding involving technical or specialised matters may involve expert examination. Businesses should therefore maintain accurate accounting, technical, contractual and electronic records and be prepared to explain the factual and technical aspects of their transactions when required under the applicable GST procedure.
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