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TMI BlogIntelligence wing - Power, Roles and Responsibilities.X X X X Extracts X X X X X X X X Extracts X X X X ..... oach to enforcement which relies considerably on physical interception of the movement of goods. This approach can no longer continue in the same manner with the removal of inter-state movement controls and check posts. Other enforcement activities, including inspections, had been authorized at decentralized levels. The past track record of the actual collection from such activities shows that the amount actually collected as revenue is a tiny fraction of the amount initially shown as detected . Enforcement activities have also witnessed numerous vigilance and anti-corruption inquiries over the years. The Government has emphasized that intelligence-based enforcement activities shall be carried out in an unobtrusive and efficient manner with senior officials under proper authorization and overall supervision and control of the Commissioner. The need to avoid indiscriminate investigation and to avoid any disrepute to the Department has been stressed. By their nature, enforcement activities involve some degree of risk and uncertainty. Enforcement activities can have three possible outcomes: i) Evasion has taken place and enforcement action is taken-this represents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper officer superior to the Joint Commissioner. The Joint Commissioner or any proper officer superior to him can authorize any proper officer to conduct inspection only if he has reasons to believe that:- (a) A taxable person has suppressed any transaction relating to supply of goods or services or stock in hand or (b) A taxable person has claimed excess input tax credit or (c) A taxable person has contravened any of provisions of the Act or the Rules to evade tax and (d) Any person engaged in the business of transporting or storing goods or is keeping goods which have escaped payment of tax or is manipulating accounts or stocks which may cause evasion of tax. Inspection of goods in movement and conveyances carrying consignment of goods may also be done by proper officers as per the provisions of section 68 of the GST Act to prevent evasion of tax. Though section 67 and 68 provide ample power to proper officers to inspect any places of business of the taxable persons or the persons engaged in the business of transporting goods or the owners or the operators of warehouse or godown or any other place or inspection of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and follow the procedure laid down in para (3) supra. 6. The Coordination Unit shall collate data from MIS for the whole State in respect of functioning of the Intelligence Wing and prepare such reports or statistics as may be prescribed or ordered by the Commissioner. B- INTELLIGENCE DIVISION: 1. The Data cell and the Survey cell shall function under the control of the Deputy Commissioner (Investigation) or the Assistant Commissioner (Investigation), as the case may be. These cells shall gather data or details in respect of such taxpayers as may be ordered by the Commissioner of Commercial taxes or by the Joint Commissioner (Intelligence) concerned or other taxpayers after getting permission from the Joint Commissioner (Intelligence) and provide the required data or details to the Investigation Unit. 2. The Investigation Unit, based on the data gathered from the Data Cell and Survey Cell or inputs from other officers, shall prepare the investigation file and submit the same to the Joint Commissioner (Intelligence). 3. The Joint Commissioner (Intelligence) shall examine the investigation file submitted by the Investigation Unit and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings and the fact whether statement of the day has been recorded or not, to the Central Intelligence Wing through e-mail as in annexure or through portal, in format prescribed, for the notice of Commissioner of Commercial Taxes. 11. The head of the inspecting team or any such other officer not below the rank of State Tax Officer as may be authorized by the Joint Commissioner (Intelligence) shall, within a period not exceeding 30 days from the date of the completion of the inspection, pass the final assessment or adjudication order on the basis of the findings made during the inspection and available records. However, the period of 30 days may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner (Intelligence) for a further period not exceeding 30 days and further extension of time shall be granted with the approval of the Commissioner of Commercial Taxes. Where the proceeding is stayed by an order of the court or Appellate Tribunal or by any competent authority, the period of such stay shall be excluded in computing the above specified period. 12. The proper officer notified as adjudicating authority sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authority or the Revision Authority or not and based on the report, he may cause filing of an appeal before the Tribunal. Though section 112(3) provides a period of 6 months for filing appeal before the Tribunal, such decisions to file or not to file appeal before the Tribunal shall be taken by the Review Cell, within ninety days from the date of receipt of the order or decision and appeals shall be filed within fifteen days from the expiry of the above said ninety days. Stay of proceedings or orders or decisions of the proper officer concerned by any legal forum or by any competent authority shall be excluded in determining the time limit specified herein. 16. The Deputy Commissioner (Inspection) shall ensure that the demand raised during any of the adjudication or assessment proceedings is collected within the due date and if not collected, arrear action shall be taken immediately by the Demand Collection Cell to realize the arrear. 17. The Legal Cell shall coordinate with the Legal wing in the office of the Commissioner of Commercial Taxes and Government Law officers in respect of cases pending before any legal fora and shall also ensure filing of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of entry; or (ii) a delivery challan, where the goods are transported for reasons other than by way of supply, instead of the e-way bill . In such circumstances, the conveyance shall not be detained for not possessing e-way bill. 4. Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently, as mandated by sub-rule (2) of rule 138C of the GST Rules. 5. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection. 6. The Roving Squad Officers, in respect of those cases where no decision has been taken by them during their duty hours, shall hand over the detained goods and conveyance al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the stock yard / godown / branch; the transporter possesses the necessary tax invoice, but the E-way bill was generated for principal place of business/ different place of business. In this case the CGST/SGST/IGST (if interstate supply) would have been suffered at the hands of manufacturer or distributor. Mere delivery of the goods at a place other than those mentioned in the documents would not render the transaction as an evasion or abetment of evasion. Being a B 2 B transaction, trail of transaction would now be available in GSTR-1 for the department. Example 2: A conveyance carrying the goods from a factory of fertilizers is delivering the same at various locations as directed by the department of Agriculture. The goods are accompanied by invoice or invoice with delivery challan and E-way bill. The E-way bill has expired due to delay in making delivery at various locations. The expiry of E-way bill does not create any scope for evasion. In cases as in the examples, penalty of upto ₹ 5000/- per act shall be levied. 11. CIRCUMSTANCES WHERE PENALTY of ₹ 25000/- SHALL BE LEVIED: i) In the circumstances described in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (6). There is a general tendency among the taxpayers dealing in precious metals and stones not to issue invoices to the extent possible to un-report sales made out of goods bought from unknown source or brought from outside the country through illegal means. (7). Goods supplied to taxpayers involved in operation where black money plays the vital role needs special attention for investigation and inspection. For example, much evasion took place in real estate and construction segment and this may be reason as to why the percentage of tax evasion is higher in Electrical Goods, Marbles, Tiles, Sanitarywares, Steel, Blue metal, bricks and other building materials: and also in services offered to this sector. (8). Claiming input tax credit against fake invoices and ineligible claim of input tax credit. (9). MultipIe tax rates on the same goods make it an easy way for many taxpayers to evade taxes. In case of garments, a number of smaller players are billing one shirt that costs ₹ 1,000 above as two pieces of around ₹ 600 each to pay only 5% instead of 12% which is applicable for shirts which costs ₹ 1000/ and above. (10). G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxpayer 4. GSTR-3B return for the taxpayer Where the revenue involved in such mismatch cases exceeds ₹ 10 Lakhs. 6. Frequent cancellation of e-way bill or frequent rejection of e-way bill by the consignor, consignee or the transporter, as the case may be. E-way bill data. Where the value of the goods covered by the cancelled or rejected e-way bill or both is more than 10% of the turnover reported for a tax period and it is continued for more than two tax periods. 7. Compliance to payment of GST in respect of taxpayers who have adhoc business for a certain period such as, IPL Cricket, Musical shows or other entertainment activities, Marriage service providers etc. 1. News feeds. 2. Public domain search. 8. Registration high net worth individual taxpayers in the field of Cinema Entertainment Industry, Auditors, etc. 1. Details of high network individuals from various sources such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MDU - Intelligence Madurai TRY - Intelligence Trichy ERD - Intelligence Erode SLM - Intelligence Salem CBE - Intelligence Coimbatore b) Division-wise running Number - 3 digits from 001 to 999 c) YYYY- Year format (4 digits) d) MM- Month Format (2 digits) e) DD - Day Format (2 digits) Example: SLM -001-20190513. The IF Number will be allocated by Commissioner of Commercial Taxes on approval. All the communications in respect of the inspection related activities carried out by the officials are to be communicated to the Commissioner of Commercial Taxes from hereon, through the subject tag mentioning the aforesaid metadata format , for easy identification and further follow up to the actions taken on each inspection by the Officials. The following email ids hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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