CBIC Notifies Instructions regarding applying para 2(g) of Instruction No.01/2023-24-GST (Inv.) in Audit matters [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) on August 14, 2024, notified instructions regarding applying para 2(g) of Instruction No.01/2023-24-GST (Inv.) dt- March 30, 2024, in Audit matters.

The notification is issued in providing guidelines for maintaining ease of doing business while engaging in investigation with regular taxpayers. The para 2(g) of said Instruction stated that “The scenario may arise in a CGST Zone where an issue investigated by one of the (Pr.) Commissioners is based on an interpretation of CGST Act/ Rules, notifications, circulars etc, and it is in the direction of proposing non-payment or short payment of tax, however, the background is that the taxpayer(s) is/are following, or have followed, a prevalent trade practice based on particular interpretation on that issue in the sector/industry.“

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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. The endeavour, to make such reference before concluding investigation, and as much in advance, as is feasible, of the earliest due date for issuing of show cause notice, may be useful in promoting uniformity or avoiding litigation if the matter, after being processed, is amongst those that also gets placed before the GST Council."

The Board desires that during the process of audit, wherever the relevant CGST Audit (Pr.) Commissioner comes across the scenario described above, the Zonal (Pr.) Chief Commissioner should follow the procedure and endeavour prescribed by Board in para 2(g) of above Instruction. This applies also to on-going audit proceedings.

To Read the full text of the Notification CLICK HERE

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