Guidelines for CGST Field Formations in Maintaining Ease of Doing Business While Engaging in Investigation with Regular Taxpayers

The Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines to ensure that Central Goods and Services Tax (CGST) field formations follow a uniform procedure in undertaking enforcement activities involving regular taxpayers. These guidelines aim to balance effective investigation with maintaining the ease of doing business.

Key Guidelines

1. Responsibility of (Pr.) Commissioner:
   • Within the allocated jurisdiction, the (Pr.) Commissioner is responsible for developing and approving intelligence, conducting searches, and completing investigations, including actions in divisional formations.
   • Any information or intelligence related to another CGST field formation must be forwarded to the concerned formation or Directorate General of GST Intelligence (DGGI).
2. Approval for Investigation:
   • Investigations must be initiated only after approval from the (Pr.) Commissioner.
   • For cases involving interpretation of tax laws, large industrial houses, sensitive matters, or issues already before the GST Council, prior written approval from the zonal (Pr.) Chief Commissioner is required.
3. Coordinated Efforts:
   • Before initiating an investigation, verify if any other office or tax administration is investigating the same taxpayer to avoid duplication.
   • Engage in dialogue with other investigating offices to streamline investigations and consolidate efforts.
4. Handling Multi-Jurisdictional Cases:
   • If an issue involves multiple GSTINs across jurisdictions, the (Pr.) Commissioner should refer the matter to the zonal (Pr.) Chief Commissioner, who will coordinate with the Pr. DG, DGGI.
   • For issues relevant to taxpayers across various CGST jurisdictions, the (Pr.) Commissioner must act within 30 days of initiating the investigation, either sharing information with concerned zones or requesting DGGI to issue an alert.
5. Interpretation-Based Investigations:
   • If an investigation is based on an interpretation of CGST Act/Rules and could lead to litigation, the zonal (Pr.) Chief Commissioner should make a reference to the relevant policy wing of the Board to promote uniformity and avoid litigation.
6. Initial Communication with Entities:
   • For listed companies, PSUs, government departments, or statutory authorities, initial communication should be through official letters rather than summons.
   • Letters should specify the reasons for the investigation and request relevant details within a reasonable timeframe.
7. Digital Information:
   • Information available on the GST portal should not be requested from taxpayers through letters or summons.
   • Avoid using letters or summons to seek information in specified formats or proformas.
8. Issuing Summons:
   • Summons should only be issued after obtaining reasoned approval from an officer not below the rank of Dy/Asst. Commissioner.
   • If prior written permission is not possible, verbal approval can be given but must be confirmed in writing at the earliest opportunity.
   • Ensure that the relevancy and propriety of the information sought are recorded to avoid repeated issuance of summons.
9. Documentation:
   • Scanned copies of statements recorded under summons should be uploaded in the same e-office file where approval was obtained.
   • The outcome of searches or inspections, including panchnamas, should also be uploaded and submitted for review within four working days.
10. Conclusion of Investigation:
    • Investigations should conclude within one year, with prompt issuance of show cause notices or closure reports as appropriate.
    • If no objectionable findings are made, record that the investigation will not be pursued further.

Grievance Redressal

• The (Pr.) Commissioner should proactively prevent complaints related to ongoing investigations.
• The Addl./Jt. Commissioner in charge of investigation serves as the Grievance Officer, available to address taxpayer concerns through letters, emails, or appointments.
• If grievances persist, the (Pr.) Commissioner may consider meeting the taxpayer by appointment.

Conclusion

These guidelines aim to ensure that CGST field formations conduct investigations efficiently and fairly while maintaining the ease of doing business. By following these procedures, the CBIC seeks to foster a balanced approach that protects revenue without unduly burdening taxpayers.

Issued by: F.No. CBIC-20016/9/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi

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