Guidelines for Business Friendly Investigations
The Government has issued Instruction related to Guidelines for Business Friendly Investigations on 30-03-2024.This instruction is regarding CGST Fileld formations when conducting investigations involving regular taxpayers while maintaining ease of doing business.
The Guidelines are as under:
Responsibility of Principal Commissioner: The Principal Commissioner in the designated jurisdiction is responsible for developing, approving, intelligence, conducting searchs and completing investigations and taking relevant subsequent actions.
Approval for Investigations: Investigations should only commence after approval from Principal Commissioner.Exceptions are in cases needing prior written approval from the Zonal Principal Chief Commissioner, such as matters of interpretation involving major corporations, sensitive matters or those already before the GST Council
Coordination Investigations: If another office or tax administration is already investigating the same taxpayer or subject matter, this must be clarified before intiating an investigations.
Engagement with other officer: In case where other offices are investigating the same taxpayer but on different matters,the reason for pursuing separate investigations must be documented.
Referral to DGGI: If an investigation involves multiple GSTINs under different jurisdictions, the matter should be referred to the Principal DG of DGGI for appropriate actions.
Intiating investigation with designated Entities: Official letters detailing the reasons for investigation and requesting relevant information should be sent to designated officers of entities like listed companies or government agencies intially, instead of using summons.
Clarity in communication: Letters or summons should clearly specify the nature of inquiry being intiated or undertaken without vague or general expressions.
Scope of Summons: Summons should adhere to the scope defined in the CGST Act and should not convey request outside the scope.
Timely conclusion of Investigations: Investigations should conclude with one year and subsequent actions like issuing show cause notices or closure reports should not be delayed.
Grievance Redressal: Taxpayers with grievance related to ongoing investigations can approach the Additional or Joint Commissioner for redressal.
