Instruction from CBIC regarding guidelines for CGST field formations to be followed while conducting investigations on regular taxpayers. The emphasis is on streamlining procedures and promoting ease of doing business

The CBIC has issued instruction bearing no. 01/2023-24-GST (Inv.) dated 30^th March, 2024 to GST officers to provide guidelines for undertaking enforcement activities to ensure uniformity in the same. The coverage of instruction is manner of initiation of investigations, officers whose approval is required before initiation of such activities, manner of issuance of summons/letters and duration of investigation. It also provides that the officers must take into consideration, the trade practices for conducting such investigation. Further, the summons issued and the investigation conducted must be in in accordance with the GST laws.

Key points for consideration as per the instruction are as follows: -

Approval Process:

• Initiation of each investigation require approval from the Principal Commissioner (Pr. Commissioner).
• Four sensitive category of cases require prior written approval from the Zonal Principal Chief Commissioner (Pr. Chief Commissioner): -
  1. matters of interpretation seeking to levy tax/ duty on any sector/commodity/service for the first time, whether in Central Excise or GST; or
  2. big industrial house and major multinational corporations; or
  3. sensitive matters or matters with national implications; or
  4. matters which are already before GST Council.

Sharing of Information:

• Information relevant to other jurisdictions should be forwarded to the concerned CGST formations or DGGI.
• Commissioner should consider consolidating investigations with one tax authority (either DGGI or the State GST department), if investigating same taxpayer on different matters.

Initiation of Investigation:

• Investigations involving listed companies, PSUs, or government departments should begin with official letters requesting relevant details;

Issuance of Summons:

• Summons should disclose specific nature of the inquiry;
• Information available digitally/online on GST portal should not be called for under letter/summons from regular taxpayers;
• The content of the summons, including the information sought and timeframe for compliance, needs prior approval (usually at Deputy/Assistant Commissioner level);
• Before summoning any information or documents from a regular taxpayer, the relevancy and propriety of what is being sought must be recorded (on e-file), ensuring that it is holistic and result of preparation, and also so as not to have repeated issuance of summons or seeking piecemeal information.

 Investigation Duration:

• Investigations must be concluded within a year;
• Issuance of show cause notices and closure reports should not be delayed.

Grievance Redressal:

• The Additional/Joint Commissioner in-charge of investigation is the designated Grievance Officer for taxpayers.

This instruction aims to ensure standardized and efficient investigation process that minimizes disruption for regular taxpayers.

The complete text of the relevant instruction can be accessed from the below link:

https://taxinformation.cbic.gov.in/view-pdf/1000499/ENG/Instructions