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TMI BlogGuidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayersX X X X Extracts X X X X X X X X Extracts X X X X ..... doing business while engaging in investigation with regular taxpayers - reg. The undersigned is directed to say that the matter of CGST field formations following a uniform procedure in undertaking enforcement activities, with or involving regular taxpayers, which incorporates aspects related to the ease of doing business, was considered by Board. 2. Keeping relevant aspects in view, the Board has desired that the following guidelines, henceforth, should be followed in the CGST Zones while engaging in investigation, subject to legal provisions or instructions issued on this behalf: (a) Within the allocated jurisdiction of Commissionerate under notification No. 2/2017-Central Tax dated 19.06.2017 , the (Pr.) Commissioner shall be responsibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be studied so as to have adequate justification for initiating investigation and taking action. (c) The fact of initiation of inquiry, if any, already on same subject matter with respect to the same taxpayer/GSTIN by another investigating office or tax administration must be ascertained for purposes of obtaining approval to initiate investigation. The position must be placed before the authority who is to approve initiation of investigation. (d) There may be a situation where it comes to the Commissionerate s notice that either the DGGI or the State GST department is also simultaneously undertaking record-based investigation of the same taxpayer on different subject matters. The (Pr.) Commissioner must engage in dialogue with the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross various jurisdictions related to the issue or topic is available, the self-contained reference be shared with each concerned Zone or all the Zones. ii. In other situations, Pr. DG DGGI shall be requested to issue suitable alert. (g) The scenario may arise in a CGST Zone where an issue investigated by one of the (Pr.) Commissioners is based on an interpretation of CGST Act/ Rules, notifications, circulars etc, and it is in the direction of proposing non-payment or short payment of tax, however, the background is that the taxpayer(s) is/are following, or have followed, a prevalent trade practice based on particular interpretation on that issue in the sector/industry. This scenario results in more than one interpretation and likelihood of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he inquiry being initiated/undertaken. The vague (or general) expressions such as that the officer is making inquiry in connection with GST enquiry or evasion of GST or GST evasion etc. must not be mentioned. (j) Information available digitally/online on GST portal should not be called for under letter/summons from a regular taxpayer. Further, a letter or summons should not be used as a means to seek information filled in formats or proforma (specified by investigation). (k) The summons in conduct of investigation must not convey requests outside the scope defined for a summons. In the case of GST, the scope of summons is in the wording of section 70 of CGST Act, 2017 . Addressing letter/summons with context or content akin to a fishing inq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must reach the earliest conclusion which is not more than one year. It is not necessary to keep investigation pending till limitation in law approaches. Show cause notice should not be delayed after conclusion of investigation. The closure report consequent to the appropriate payment of government dues by the person concerned should also not be delayed and should have a brief self- explanatory narration of the issue and the period involved. Expeditious actions without delay at these stages are part of preventive vigilance ensuring that no room remains for malpractices. (q2) Conclusion of investigation may also take the form of recording that investigation is not being pursued further as nothing objectionable was found in terms of matter in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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