The Central Board of Indirect Tax and Customs ( CBIC ) has given the green light to a comprehensive standard operating procedure ( SOP ) aimed at guiding officials from the Directorate General of GST Intelligence ( DGGI ) on how to conduct tax investigations, summons, and searches. This move is part of broader efforts to enhance the business environment and ensure that taxpayers are not subjected to undue harassment.
The newly introduced six-page SOP lays down specific guidelines for DGGI officials. It emphasizes the importance of focusing on Goods and Services Tax ( GST ) cases within their respective zonal units for investigation, avoiding duplication of efforts that fall under audit or scrutiny, and issuing clear and detailed summons with specific information and timelines. Vague or incomplete information should be provided in written form rather than through summons.
Furthermore, the SOP mandates that any statements or outcomes from questioning and searches must be uploaded into the system within four working days. This transparent approach aims to streamline the investigation process and provide clarity to both officials and taxpayers.
In a bid to expedite investigations and minimize delays, the SOP also sets a deadline of one year for concluding investigations and emphasizes prompt issuance of show cause notices following the investigation’s conclusion.
Earlier reports had indicated CBIC’s intention to introduce this SOP following concerns over repeated notices, alleged harassment during investigations, and frequent summons. The CBIC’s directive stresses the importance of maintaining consistency and providing written justifications for any deviations from the established procedures.
Moreover, the SOP addresses the issue of multiple notices by encouraging coordination between different investigating offices within the CGST Zone and State GST, particularly when dealing with the same taxpayer. This collaborative approach aims to streamline processes and reduce unnecessary burdens on taxpayers.
For investigations involving listed companies, public sector undertakings (PSUs), corporations, government departments, or agencies, the SOP recommends sending official letters instead of summons to the designated officer of such entities. These letters should clearly outline the reasons for the investigation, cite relevant legal provisions, and provide a reasonable time frame for response submission, ensuring a fair and transparent process for all parties involved.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
