The CBIC has issued Instruction No. 01/2023-24-GST (Inv.) dated March 30, 2024 , regarding Guidelines for CGST field formations in maintaining ease of doing business while engaging in investigation with regular taxpayers.
The board has issued a new set of guidelines aimed at maintaining ease of doing business while engaging in investigation with regular taxpayers. One such guideline says there may be a situation where it comes to the Commissionerate’s notice that either the DGGI (Director General of GST Investigation) or the State GST department is also simultaneously undertaking record-based investigation of the same taxpayer on different subject matters.
“The Principal Commissioner must engage in dialogue with the other investigating office(s) to consider the feasibility of only one of the offices pursuing all these subject matters with respect to the taxpayer, and the other offices consolidating their material with that office,” the guideline said.
Guidelines have also assigned responsibility for approving investigations against various categories of taxpayers. It has been said that though each investigation must be initiated only after the approval of the Principal Commissioner, consent will be required from zonal Principal Chief Commissioners to initiate an investigation or take action for cases falling into four categories. The first category is matters of interpretation seeking to levy tax/ duty on any sector/ commodity/ service for the first time, whether in Central Excise or GST. Second category is big industrial house and major multinational corporations. The third category is sensitive matters or matters with national implications. The fourth category is related to matters already before the GST Council.
The guidelines allowed taxpayers to approach designated officials of the rank of principal commissioner in case of a grievance in an investigation. This move follows the CBIC board to adopt a more taxpayer-friendly approach and minimise possible instances of harassment. In case the reasonable grievance persists, the (Principal) Commissioner may consider meeting, by appointment, the taxpayer.
Prior written permission has also been mandated in matters of interpretation seeking to levy tax on any sector, commodity or service for the first time, whether in central excise or GST. In matters concerning interpretation of the law, the zonal principal chief commissioner will have to make a reference to the policy wing of CBIC before the earliest due date of issuing show cause notice.
Investigation timeline
The Guidelines states that “An investigation initiated must reach the earliest conclusion which is not more than one year. It is not necessary to keep the investigation pending until the limitation in law approaches. Show cause notice should not be delayed after the conclusion of the investigation.”
The Complete guideline can be accessed at https://taxo.online/wp-content/uploads/2024/03/Instruction_1_23-24.pdf
