TaxTMI 
TaxTMI 
Guidelines for conducting investigation in certain cases
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....in cases. 1. The officers of DGGI across the country at its Headquarter, the 26 Zonal Units (ZU) and 40 Regional Units (RU) have all-India jurisdiction for the purposes of their role in the compliance management framework of Goods and Services tax (GST) and Central Excise. Under GST, investigation may be made by DGGI or jurisdictional CGST formations or the States. In GST, a person is to register in each respective State where he is making supply and as a result, may have multiple GSTINs on the same PAN. 2. The above eco-system presents the need to nurture uniformity and optimum resource use, and at the same time keep the balance of ease of doing business in enforcement activities, which has also been deliberated in the DGGI Annual Conference in November, 2023. Keeping relevant aspects in view, the guidelines issued from file No. DGGI/17-2023-Inv-0/o Pr-DG-DGGI-HQ-Delhi-Part (1) dated 18.09.2023 (as amended on 08.12.2023) are superseded by these wider guidelines that are, henceforth, to be followed in the DGGI while engaging in investigation, subject to legal provisions or instructions issued in this behalf. Initiation of investigation and follow-up 3. While DGGI office....
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....ters of interpretation seeking to levy tax/ duty on any sector/ commodity/ service for the first time, whether in Central Excise or GST; or (ii) big industrial house and major multinational corporations; or (iii) sensitive matters or matters with national implications; or (iv) matters which are already before GST Council. Moreover, for cases of the category (iii) or (iv), before any precipitative action is taken in investigation, the respective DG SNU shall necessarily bring the matter to the notice of the Pr. DG. In all of above category of cases, the concerned Zonal Head should collect details regarding the prevalent trade practices and nature of transactions carried out from the stakeholders. The implications / impact of such matter should be studied so as to have adequate justification for initiating investigation and taking action. (II) Initiating investigation related to an aspect leading to tax demand notice on a taxpayer/GSTIN located outside jurisdiction allocated to a ZU. In such cases, the ZU seeking such approval is required to make a proposal (with adequate justification of its reasoned circumstances) to/via its DG, SNU. If the matter is in the jurisd....
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....with the said end-availer of ITC located outside its own jurisdiction. In case of the end-availer of the ITC falling outside the geographical jurisdiction of that SNU, such approval shall also be intimated by this DG to the Pr. DG. (i) Which ZU/RU/team investigates, must not be at the behest of an informer. (j) The above aspects should be read harmoniously with each other. Summons 4. In initiating investigation with respect to a listed company or PSU or Corporation or Govt Dept./agency or an Authority established by law, or seeking details (that are record-based and/or are reflected in statutory books of account or filings) from them, the practice to be adopted by DGGI should be of initially addressing official letters (instead of summons) to the designated officer of such entity (detailing the reasons for investigation, and the legal provisions therefore) and requesting the submission of the relevant specified details in a reasonable time period which should be mentioned in the letter. Divergence from this practice at initial stage must be backed by written reasons. 5. In a letter/summons issued for seeking information/documents from regular taxpayer, instead of ref....
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....nt, completion of search/inspection. Precautions/other aspects in investigation 12. For obtaining approval to initiate investigation with respect to a taxpayer, the fact of initiation of inquiry, if any, already on same subject matter with respect to the same taxpayer/GSTIN by another investigating office or tax administration must be ascertained. The position must be placed before the approving authority. 13.1 An investigation initiated must reach the earliest conclusion which is not more than one year. It is not necessary to keep investigation pending till limitation in law approaches. Show cause notice should not be delayed after conclusion of investigation. The closure report consequent to the appropriate payment of government dues by the person concerned should also not be delayed and should have a brief self- explanatory narration of the issue and the period involved. Expeditious actions without delay at these stages are part of preventive vigilance ensuring that no room remains for malpractices. 13.2 Conclusion of investigation may also take the form of recording that investigation is not being pursued further as nothing objectionable was found in terms of matter....