Under the Goods and Services Tax Act, 2017 (GST Act), the finance ministry has circulated the complaints specifying the conditions for the investigation, summons, arrests, and bail procedures regarding breach of GST provision. Compliances, the approval for arrest beneath GST act furnishes for the cases in which there was a clear intention for tax theft or committing the violation. The ministry of finance instructions specify that the approval for the arrest must not be allowed when the tax difference relies on the discrepancy of legal belief in the interpretation of the law.
The same rule specifies towards the GST violation an accused is mandated to be arrested, and compliance with the process of arrest under the criminal penal code (CrPc) is needed. Before the Directorate General of GST Intelligence (DGGI) details of arrests under the act should be sent every month, under the rules.
Quoting the Code of Civil Procedure, 1908, the policy stated, “As per Section 70 (1) of the CGST Act, summons can be issued by the proper officer to any person whose attendance is considered necessary either for giving evidence or producing a document or any other thing in an inquiry in the same manner as provided in the case of a civil court.”
They must not show the name of the criminals with respect to whim the search and seizure furnished the disclosure would not harmful to the cause of the search to furnish a prima facie understanding for the capacity where the offenders have been summoned– accused, co-accused or witness.
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Circulating the summons beneath the GST act, the officials should ensure that the same would be performed in a judicious way. The council recommends seeing towards the incidents in which the letter of requisition might suffice rather than allocating the summons.
Below are the Finance Ministry Guidelines to Issue Summons Under the GST Act:
- Superintendents have the power to issue the summons though senior officials might issue the summons.
- Summons might get imposed by the Superintendents post to receiving the written permission specifying the reasons to issue the summon via an officer on the Deputy/Assistant Commissioner rank.
- The summoning officer must offer his presence during the time and date to which the summon would have been imposed.
- Towards any emergency, the summoned individual must be notified before.
- For the case in which there shall be no possibility of getting any written permission, oral/telephonic permission from an officer on the rank of Deputy/Assistant Commissioner must be received and that must be given in writing and told to the officer as soon as possible.
- Summons will get prevented for the cases in which the statutory documents would be available digitally or in the GST portal.
- For the cases where there would be an engagement of the officials like (CMD, MD, CEO, CFO, or other identical officers of the company or PSU, no summons will be issued for the first time.
- Summon shall be issued after a clear engagement seems to be there in the decision making which directed to revenue loss, as confirmed in the investigation.
