Question 6 - What is meant by ‘reasons to believe’? - FAQ on GST dated 21.9.2016 based on Draft Model GST

Q 6. What is meant by reasons to believe ? Ans. Reason to believe is to have knowledge of facts which, although not amounting to direct knowledge, would cause a reasonable person, knowing the same facts, to reasonably conclude the same thing. As per Section 26 of the IPC, 1860, A person is said to have reason to believe a thing, if he has sufficient cause to believe that thing but not otherwise. Reason to believe contemplates an objective determination based on intelligent care and evaluation as distinguished from a purely subjective consideration. It has to be and must be that of an honest and reasonable person based on relevant material and circumstances.