A detailed standard operating method for officials of the Directorate General of GST Intelligence (DGGI) is been approved by the Central Board of Indirect Tax and Customs (CBIC) accompanying certain instructions for their conduct at the time of the tax investigation, summons, and searches to rectify the simplicity of business procedure and to avert any happening of harassment to assessees.
The six-page detailed SOP (Standard Operating Procedure) instructs officials to adhere to Goods and Services Tax (GST) cases within their zonal units for investigation, skip investigations that come under the ambit of audit and scrutiny and issue summons with specific details of the subject of inquiry and clear timelines and not for “vague” and piecemeal information, which can be submitted in written.
The statement and result should be uploaded to the system in 4 working days for the matter of questioning and searches.
A copy of the letter addressed to the principal directorate general, DGGI is seen by the tax expert.
It is indeed mandated by the Supreme body for indirect tax that an investigation should be concluded within a year and issuing any SCN must not be delayed post-investigation closure.
An SOP is been planned by the CBIC for the DGGI investigation after the occurrence of multiple notices, alleged harassment during the investigation, and frequent summons.
“Divergence from this practice at the initial stage must be backed by written reasons,” the CBIC said. The CBIC has addressed the risk of multiple notices.
“When, in a case started by DGGI, it comes to notice that CGST Zone and/or State GST are also glancing at the taxpayer, the Zonal Unit must dialogue with other investigating office(s) and consider the feasibility of one of the offices pursuing all these subject matters concerning the taxpayer,” the letter states.
DGGI In the matter of investigation for the listed company or PSU or corporation, or government department of the agency, should send the official letters rather than summons to the assigned officer of such entity, with the explanations for investigation, the legal provisions consequently, and providing a reasonable period for submitting their response.
“This can prove to be effective in the way India Inc. has encountered investigations in the past and provide for a much stabilized and consistent practice to how the investigations are executed in India,” tax expert said.
