The CBIC has asked GST officers conducting audit to refer to the board those cases where they face issues of conflicting interpretation of provisions of the tax law.In an instruction to field offices, the Central Board of Indirect Taxes and Customs (CBIC) said during the process of audit, a CGST Audit Principal Commissioner may come across a scenario where a taxpayer has followed a prevalent trade practice based on particular interpretation of Goods and Services Tax (GST) law and more than one such interpretation of the law could result in litigation.
“In such cases, it is desirable that the zonal (Pr.) Chief Commissioner make a self-contained reference to the relevant policy wing of the Board i.e. the GST Policy or TRU (Tax research Unit),” the CBIC said, adding that the Commissioner would make the reference before conclusion of the audit and before issuing show cause notice to promote uniformity and avoid litigation.
“In response to these concerns, the CBIC's instruction aims to standardize the audit process by requiring Zonal Principal Chief Commissioners to consult with the relevant policy wing of the Board (GST Policy or TRU) before concluding any investigation where multiple interpretations of the law exist.
Source: Business Standard
