The six-page SOP provides clear instructions to DGGI officials on their conduct during various stages of tax investigations, including summons and searches.
The Central Board of Indirect Tax and Customs (CBIC) has rolled out a new standard operating procedure (SOP) for officials of the Directorate General of GST Intelligence (DGGI) aimed at enhancing ease of doing business and preventing any undue harassment of taxpayers during tax investigations.
The recently approved six-page SOP provides clear instructions to DGGI officials on their conduct during various stages of tax investigations, including summons and searches. It emphasizes the importance of focusing on Goods and Services Tax (GST) cases within their respective zonal units, avoiding duplicative investigations covered under audits or scrutiny.
Officials are now required to issue summons with specific details related to the subject of enquiry and set clear timelines, avoiding vague or partial information that can be provided in writing. Following questioning and searches, all statements and outcomes must be uploaded into the system within four working days.
CBIC has set a timeline of one year for the conclusion of investigations and emphasized the timely issuance of show cause notices once investigations are completed. Any deviations from these norms must be justified with written reasons.
Addressing the issue of multiple notices, the SOP encourages dialogue between the DGGI and other investigating offices if multiple authorities are looking into the same taxpayer. This aims to streamline the investigative process and reduce unnecessary burdens on taxpayers.
For investigations involving listed companies, public sector undertakings (PSUs), corporations, or government departments, the DGGI will now send official letters to the designated officers of these entities. These letters will outline the reasons for the investigation, relevant legal provisions, and provide a reasonable time frame for submitting responses.
This new SOP marks a significant shift in how tax investigations are conducted in India. It aims to provide a more stable and uniform approach across the country, potentially offering relief to India Inc. from the uncertainties and challenges often associated with such processes.
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