HYDERABAD: The State GST department, which has to issue guidelines in line with the note of caution issued by the Central Board of Indirect Taxes and Customs (CBIC) specifying
the dos and don’ts, is yet to do so. The regulations were issued to streamline tax investigation, summons and searches with the primary focus on simplifying business procedures and preventing harassment of the business community.
The state GST department has to issue its own cautions to its officials in light of the board’s note. This is endeavoured to avoid variations in approval between the two wings of GST administration-CGST and SGST. There have been umpteen complaints that officials from the state have not been following the CBIC cautions CBIC for those from the DGGI (Directorate General of GST intelligence).
The standard operation procedure (SOP) aims to enhance transparency and efficiency in the tax procedures while safeguarding the interests of taxpayers.
The guidelines were approved after extensive deliberations during DGGI annual conference held in Goa on November 28 and 29. The DGGI, which functions in 26 zonal units, can conduct any investigation across states and units where their headquarters are located. The new guidelines have put a break to this practice now.
The DGGI units are now restricted from initiating any investigation outside their zonal jurisdictions.
Once an investigation results in chasing the chain of fraudulent tax payers then it is directed that the ultimate taxpayer’s jurisdiction needs to be identified and the information so gathered has to be intimated to the respective jurisdiction authority, which will accordingly take action.
The summons while avoiding vague or general expressions such as “this someone is issued in connection with a GST enquiry” should contain the specific nature of enquiry being initiated or undertaken. The instructions specifically make it clear that information available on the GST portal should not be called for.
Further the summons must not convey a request outside the purview of the CGST Act.
A time limit of one year has been set for concluding an investigation. It is also instructed that where more than one officer is conducting a probe on a single taxpayer on different subject matters then the investigation may be clubbed and assigned to one officer. This marks the first time that a grievance redressal system has been provided for businessmen.
