The CBIC further said that for initiating investigation in respect of a listed company or PSU or seeking details from them, CGST officers should issue an official letter instead of sending summons to the designated officer of the entity.
New Delhi. GST regional officers will now have to seek the approval of their regional Principal Chief Commissioners before starting an investigation against any big industrial house or major multinational company. They will also have to seek the approval of the regional Principal Chief Commissioners to levy duty on goods/services for the first time. The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines for Central GST (CGST) officers.
According to these guidelines, when a taxpayer is being investigated by State GST and DGGI officers, the Principal Commissioner will consider the possibility that all matters in relation to the taxpayer be pursued by one office. The guidelines also set a deadline for tax officers to complete the investigation within one year of the start of the investigation. The CBIC further said that to initiate an investigation or seek details from a listed company or PSU, CGST officers should issue an official letter instead of sending a summons to the designated officer of the unit.
What not to do?
The board said that this letter should detail the reasons for the investigation and demand the submission of documents within a reasonable time period. It further said that tax officials should not seek information from the taxpayer which is already available online on the GST portal. The guidelines also state that every investigation should be initiated only after the approval of the Principal Commissioner.
Approval in writing
Prior approval in writing of the regional Principal Chief Commissioner will be required to initiate investigation and take action in four categories. These four categories include cases of interpretation seeking imposition of tax/duty for the first time on any sector/goods/services. Apart from this, cases related to big industrial houses and major multinational corporations, sensitive cases or cases of national importance and cases which are already before the GST Council are included in it.
