NEW DELHI: Amid rising concern over high-handedness of the GST field officers, the Central Board of Indirect Taxes and Customs (CBIC) has issued a comprehensive set of instructions to its field officers to ensure a more cooperative and less adversarial approach by the tax department.
The instructions call for better coordination among state and central GST officers so as not to harass the taxpayer over the same issue. The CBIC has directed the field officers that in cases involving investigations into listed companies, PSUs, Corporations, Government Departments/Agencies, or legally established Authorities, they must commence proceedings with official letters rather than summons to ensure a more cooperative and less adversarial approach.
A directive has been issued to refrain from requesting information already available in digital or online formats on the GST portal, under a letter or summons, to streamline processes and avoid unnecessary burdens on taxpayers.
According to the new directions, each investigation must be initiated only after the approval of the principal commissioner, except in matters of interpretation seeking to levy tax/ duty on any sector/ commodity/ service for the first time; big industrial house and major multinational corporations; sensitive matters or matters with national implications; matters which are already before GST Council. In all such matters prior written approval of the zonal Principal Chief Commissioner will be required.
“These instructions are a significant step towards fostering a tax environment that is conducive to business growth while ensuring compliance and fairness in the taxation system,” says Rajat Mohan, executive director at MOORE Singhi, an accounting and tax advisory firm.
The instructions also detail the content of the GST summons sent to the taxpayers. “The summons in conduct of investigation must not convey requests outside the scope defined for a summons…
Addressing letter/summons with context or content akin to a fishing inquiry is not acceptable,” says the instructions by CBIC. The indirect tax regulator further says that before summoning any information or documents from a regular taxpayer, the relevancy and propriety of what is being sought must be recorded (on e-file), ensuring that it is holistic and result of preparation, so as not to have repeated issuance of summons seeking piecemeal information.