CBIC issues guidelines for GST investigation; mandates prior approval for large cos

The Central Board of Indirect Taxes and Customs (CBIC) has introduced guidelines for Central GST (CGST) officers, requiring zonal principal chief commissioners to approve investigations on major industrial houses or multinational corporations (MNCs).

Additionally, the GST field officers will have to seek permission for levying duty on goods/services for the first time. 

As part of the guidelines, the principal commissioner will consider the feasibility of only one of the offices pursuing all the cases when a taxpayer is investigated simultaneously by the state GST and DGGI officers on different subject matters.

A deadline of one year has also been set for tax officers to conclude the investigation. 

While initiating an investigation on a listed company or PSU or seeking details from them, the CGST officers should issue "official letters instead of summons" to the designated officer of the entity, elaborating the reasons for investigation and seeking to submit documents within a "reasonable time period".

The guidelines gives leeway on four categories for seeking permission of the principal commissioner, which include matters of interpretation seeking to levy tax/duty on any sector/commodity/service for the first time; big industrial houses and major multinational corporations; sensitive matters or matters with national implications; or matters which are already before the GST Council. 

The CGST field formation is also mandated to collect details of prevalent trade practices and the nature of transactions carried out by the stakeholders. 

The guidelines also mandate for the closure report after the government dues to be paid by the concerned person to not be delayed, and have a brief self-explanatory narration of the issue and the period involved. 

(With PTI Inputs)