GST Instruction No 01/2026-GST | CBIC Introduces Information-Sharing Mechanism
CBIC issued GST Instruction No. 01/2026-GST dated 03 August 2026 regarding coordination between the CGST Department and State Mining Authorities. The purpose is to ensure regular sharing of information concerning illegal mining and illegal transportation of minerals. The instruction is based on observations made by the Comptroller and Auditor General of India (C&AG) in its Draft Performance Audit Report on the assessment, levy and collection of GST on minerals.
The C&AG observed that State Mining Authorities regularly detect cases such as illegal mining, illegal transportation of minerals, seizure of minerals and vehicles, cancellation or suspension of mining leases, extraction of minerals beyond the permitted quantity and other violations of mining laws. Such information may also reveal GST violations because illegally mined or transported minerals may have been supplied without invoices, without GST registration, at a lower declared value or without payment of the correct GST
The report also pointed out that there was no proper and regular system under which State Mining Authorities shared this information with CGST officers. Due to the absence of such a system, important information available with the Mining Department was not being properly used by GST authorities to examine tax evasion and take action under GST law.
CBIC has stated that timely receipt of information regarding illegal mining and transportation can help GST authorities identify suppression of taxable supplies, non-payment or short payment of GST, wrongful availment of input tax credit and other violations of the CGST Act, 2017.
Accordingly, every Principal Chief Commissioner or Chief Commissioner of a CGST Zone must appoint a Nodal Officer for coordination with the concerned State Mining Department. This Nodal Officer will act as the main contact person between the CGST Department and the State Mining Authorities.
Each CGST Zone must establish a proper system with the State Mining Authorities for the periodic sharing of information relating to illegal mining and illegal transportation of minerals detected within its jurisdiction. Therefore, the sharing of information should not be occasional; it should take place regularly through an established mechanism.
The CGST authorities must properly analyse the information received from the Mining Department to identify its GST implications. If the information indicates possible GST evasion or any other violation, appropriate proceedings must be initiated under the CGST Act, 2017 and the applicable Rules.
Where necessary, the intelligence developed from such information must also be forwarded to the concerned jurisdictional GST Commissionerate or the Directorate General of GST Intelligence (DGGI) for further investigation and necessary action.
The CGST authorities must also hold periodic meetings with State Mining Authorities. These meetings will be used to review whether the information-sharing system is working effectively and to resolve any practical or operational difficulties.
All CGST field formations have been instructed to circulate these directions to every formation working under their control and ensure strict compliance. If any difficulty arises in implementing the instructions, it may be reported to CBIC. The instruction was addressed to all Principal Chief Commissioners and Chief Commissioners of CGST Zones, the Director General of DGGI, and the CBIC Webmaster for publication on the CBIC website, with a copy to the Commissioner (PAC), CBIC.
