TaxTMI 
TaxTMI 
Intelligence wing - Power, Roles and Responsibilities.
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.... physical interception of the movement of goods. This approach can no longer continue in the same manner with the removal of inter-state movement controls and check posts. Other enforcement activities, including inspections, had been authorized at decentralized levels. The past track record of the actual collection from such activities shows that the amount actually collected as revenue is a tiny fraction of the amount initially shown as 'detected'. Enforcement activities have also witnessed numerous vigilance and anti-corruption inquiries over the years. The Government has emphasized that intelligence-based enforcement activities shall be carried out in an unobtrusive and efficient manner with senior officials under proper authorization and overall supervision and control of the Commissioner. The need to avoid indiscriminate investigation and to avoid any disrepute to the Department has been stressed. By their nature, enforcement activities involve some degree of risk and uncertainty. Enforcement activities can have three possible outcomes: i) Evasion has taken place and enforcement action is taken-this represents correct enforcement activity. ii) Evasion has ....
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.... superior to him can authorize any proper officer to conduct inspection only if he has reasons to believe that:- (a) A taxable person has suppressed any transaction relating to supply of goods or services or stock in hand or (b) A taxable person has claimed excess input tax credit or (c) A taxable person has contravened any of provisions of the Act or the Rules to evade tax and (d) Any person engaged in the business of transporting or storing goods or is keeping goods which have escaped payment of tax or is manipulating accounts or stocks which may cause evasion of tax. Inspection of goods in movement and conveyances carrying consignment of goods may also be done by proper officers as per the provisions of section 68 of the GST Act to prevent evasion of tax. Though section 67 and 68 provide ample power to proper officers to inspect any places of business of the taxable persons or the persons engaged in the business of transporting goods or the owners or the operators of warehouse or godown or any other place or inspection of goods in movement or conveyance carrying goods to control tax evasion, such power shall be exercised prudently minimi....
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....State in respect of functioning of the Intelligence Wing and prepare such reports or statistics as may be prescribed or ordered by the Commissioner. B- INTELLIGENCE DIVISION: 1. The Data cell and the Survey cell shall function under the control of the Deputy Commissioner (Investigation) or the Assistant Commissioner (Investigation), as the case may be. These cells shall gather data or details in respect of such taxpayers as may be ordered by the Commissioner of Commercial taxes or by the Joint Commissioner (Intelligence) concerned or other taxpayers after getting permission from the Joint Commissioner (Intelligence) and provide the required data or details to the Investigation Unit. 2. The Investigation Unit, based on the data gathered from the Data Cell and Survey Cell or inputs from other officers, shall prepare the investigation file and submit the same to the Joint Commissioner (Intelligence). 3. The Joint Commissioner (Intelligence) shall examine the investigation file submitted by the Investigation Unit and if he is satisfied, he may submit it to the Central Intelligence Wing for getting the approval of the Commissioner of Commercial Taxes. If he is not satisfied ....
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....sioner of Commercial Taxes. 11. The head of the inspecting team or any such other officer not below the rank of State Tax Officer as may be authorized by the Joint Commissioner (Intelligence) shall, within a period not exceeding 30 days from the date of the completion of the inspection, pass the final assessment or adjudication order on the basis of the findings made during the inspection and available records. However, the period of 30 days may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner (Intelligence) for a further period not exceeding 30 days and further extension of time shall be granted with the approval of the Commissioner of Commercial Taxes. Where the proceeding is stayed by an order of the court or Appellate Tribunal or by any competent authority, the period of such stay shall be excluded in computing the above specified period. 12. The proper officer notified as adjudicating authority shall finalize the adjudication in respect of cases not finalized by the Roving squad during their duty hours and which were handed over to them by the Roving squad, at the earliest to the extent possible, but not la....
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....ns to file or not to file appeal before the Tribunal shall be taken by the Review Cell, within ninety days from the date of receipt of the order or decision and appeals shall be filed within fifteen days from the expiry of the above said ninety days. Stay of proceedings or orders or decisions of the proper officer concerned by any legal forum or by any competent authority shall be excluded in determining the time limit specified herein. 16. The Deputy Commissioner (Inspection) shall ensure that the demand raised during any of the adjudication or assessment proceedings is collected within the due date and if not collected, arrear action shall be taken immediately by the Demand Collection Cell to realize the arrear. 17. The Legal Cell shall coordinate with the Legal wing in the office of the Commissioner of Commercial Taxes and Government Law officers in respect of cases pending before any legal fora and shall also ensure filing of appeal before any legal forum wherever decisions have been taken to file appeal, 18. The Joint Commissioner (Intelligence) shall have control over the entire Intelligence Division and shall exercise the powers and discharge the duties conferred or....
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....tion of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently, as mandated by sub-rule (2) of rule 138C of the GST Rules. 5. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection. 6. The Roving Squad Officers, in respect of those cases where no decision has been taken by them during their duty hours, shall hand over the detained goods and conveyance along with the documents to the adjudicating unit immediately on completion of their duty. 7. Orders or decisions passed by the Roving Squad officers, along with -the relevant records shall be handed over to the Review Cell within two days of passing such orders or decisions. 8. It ....
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....ose mentioned in the documents would not render the transaction as an evasion or abetment of evasion. Being a B 2 B transaction, trail of transaction would now be available in GSTR-1 for the department. Example 2: A conveyance carrying the goods from a factory of fertilizers is delivering the same at various locations as directed by the department of Agriculture. The goods are accompanied by invoice or invoice with delivery challan and E-way bill. The E-way bill has expired due to delay in making delivery at various locations. The expiry of E-way bill does not create any scope for evasion. In cases as in the examples, penalty of upto Rs. 5000/- per act shall be levied. 11. CIRCUMSTANCES WHERE PENALTY of Rs. 25000/- SHALL BE LEVIED: i) In the circumstances described in SI.No. 10 if any person repeatedly indulges in the same violation, a penalty of Rs. 25,000/- per act shall be levied to deter the recurrence of such offence. For this purpose the term "any person repeatedly" shall denote consignor or consignee who commits a violation more than once in a calendar month or twice in a calendar quarter or thrice in a financial year. ii) In all other circumstance....
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....ay be reason as to why the percentage of tax evasion is higher in Electrical Goods, Marbles, Tiles, Sanitarywares, Steel, Blue metal, bricks and other building materials: and also in services offered to this sector. (8). Claiming input tax credit against fake invoices and ineligible claim of input tax credit. (9). MultipIe tax rates on the same goods make it an easy way for many taxpayers to evade taxes. In case of garments, a number of smaller players are billing one shirt that costs Rs. 1,000 above as two pieces of around Rs. 600 each to pay only 5% instead of 12% which is applicable for shirts which costs Rs. 1000/ and above. (10). Goods transported through railways, as it mostly moves unnoticed by the tax officials. PARAMETERS FOR OPENING INVESTIGATION FILE FOR CONDUCTINIG AUDIT OR INSPECTION Note : The parameters in the table below are only prima facie indicators and not conclusive. Proper study and analysis should be done before proposing Inspection / Audit. Sl.No. PARAMETER SOURCE OF INTELLIGENCE / DATA PROBABLE REVNUE 1. In respect of goods exempted under VAT, but taxable under GST, taxpayers may report less turnover under GST than what was ....
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....vice providers by comparing with the value mentioned in the construction agreements registered with Registration Department or the value declared in any of the documents filed with Real Estate Regulatory Authority constituted under Real Estate (Regulation and Development) Act, 2016. Registration data from IG of registration or documents filed with Real Estate Regulatory Authority constituted under Real Estate (Regulation and Development) Act, 2016. Daily Report Format IF No. : Date : Trade name of the Tax Payer : GSTIN : Name of the Goods / Service : Name of the inspecting officers : Starting Time of inspection : Closing Time of inspection : Brief note on today's progress : Note: The brief note should contain the details of documents or goods detained during the time of inspection and the details of daily statement recorded from the person in charge of the business place under inspection or the authorized person, as the case may. Statement Investigation File (IF) NUMBER FORMAT a) Code - 3 alpha letters to identify t....