Guidelines for CGST Field Formations in Investigation and Ease of Doing Business
Guidelines for CGST Field Formations in Investigation and Ease of Doing Business
Information Sharing
Information related to investigations must be shared between CGST field formations and the DGGI as appropriate, especially when it pertains to entities under another formation’s jurisdiction or involves ITC end-avails.
Initiation of Investigation
Investigations are to be initiated with the approval of the (Pr.) Commissioner, with exceptions for cases involving new tax levies, major corporations, sensitive issues, or matters before the GST Council.
Coordination Among Investigating Offices
Before initiating an investigation, check for any ongoing investigations on the same taxpayer by another office and consider consolidating efforts for efficiency.
Consolidation of Investigations
If multiple investigations on the same taxpayer are ongoing across different jurisdictions, efforts should be made to consolidate these investigations under one office to avoid duplication.
Cross-Jurisdictional Investigations
In cases where an investigation spans multiple jurisdictions or involves the DGGI, appropriate referrals should be made to ensure a coordinated approach.
Multiple GSTIN Investigations
For investigations affecting GSTINs across various jurisdictions, actions must be taken to either inform all concerned zones or request DGGI intervention, ensuring comprehensive coverage.
Sector-Specific Interpretations
When an investigation arises from different interpretations of GST laws within a sector, a reference should be made to the GST Policy wing to seek uniformity and avoid potential litigation.
Engagement with Public Entities
Initial inquiries with public entities should be made through official letters detailing the investigation's scope, rather than summons, to maintain a professional and respectful approach.
Information Requests
Digital information available on the GST portal should not be redundantly requested, and summons should be clear about the nature of the inquiry, avoiding vague or broad queries.
Summons Issuance
Summons should strictly adhere to their legal scope, with prior approval for their issuance, ensuring they are specific and reasonable in their requests.
Documentation and Compliance
Documentation related to investigations, including statements and outcomes, must be promptly recorded and shared within the department to maintain transparency and accountability.
Timely Conclusion of Investigations
Investigations should be concluded within a year, avoiding unnecessary delays, and followed by prompt issuance of show cause notices or closure reports as appropriate.
Grievance Redressal
A proactive approach towards preventing grievances is encouraged, with designated officers available for addressing taxpayer complaints regarding ongoing investigations.
These guidelines aim to balance the enforcement of tax laws with the ease of doing business, ensuring investigations are conducted efficiently, transparently, and with minimal disruption to taxpayers.
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
