CBIC issues new norms for GST probes
Seeks to consolidate investigations under one entity; sets deadline for concluding proceedings
New guidelines from the Central Board of Indirect Taxes & Customs (CBIC) suggest that GST assessees could soon encounter multiple investigations conducted by a single office.
The guidelines have also streamlined the process of initiating GST investigations against multinationals or big industrial houses. A deadline of one year has been set to conclude the investigation.
The board has issued the new set of guidelines aimed at maintaining ease of doing business while engaging in investigation with regular taxpayers. One such guideline says if there is a situation where it comes to the Commissionerate’s notice that either the DGGI (Director General of GST Investigation) or the State GST department is simultaneously undertaking recordbased investigation of the same taxpayer on different subject matters, the investigation should be assigned to just one office while others will provide required documents to them.
“The Principal Commissioner must engage in dialogue with the other investigating office (s) to consider the feasibility of only one of the offices pursuing all these subject matters with respect to the taxpayer and the other offices consolidating their material with that office,” the guideline said. The guidelines have also assigned responsibility for approving investigations against various categories of taxpayers. It has been said that though each investigation must be initiated only after the approval of the Principal Commissioner, consent will be required from Zonal Principal Chief Commissioners to initiate an investigation or take action for cases falling into four categories. The first category is matters of interpretation seeking to levy tax/ duty on any sector/ commodity/ service for the first time, whether for central excise or GST. The second category is big industrial house and major multinational corporations. The third category is sensitive matters or matters with national implications. The fourth category is related to matters already before the GST Council.
Another guideline is related to listed companies, public sector undertakings (PSU), government departments or agencies or authorities established under the law. Now, it has been laid down that the CGST field formation should initially address official letters (instead of summons) to the designated officer of such entity .
A directive has been issued to refrain from requesting information already available in digital or online formats on the GST portal.
TIMELINE OF PROBE
Talking about timelines, it has been said, “An investigation initiated must reach the earliest conclusion which is not more than one year. It is not necessary to keep the investigation pending until the limitation in law approaches. A showcause notice should not be delayed after the conclusion of the investigation.”
Commenting on the guidelines, Rajat Mohan, Executive Director with MOORE Singhi, said that the instructions underscore the significance of strict adherence to legal provisions and advocate proactive measures to forestall grievances and ensure the expeditious resolution of investigations.