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GST Update: Instruction issued for providing relief to taxpayers in respect of issuance of summons
GST Update: Instruction issued for providing relief to taxpayers in respect of issuance of summons

August 31, 2022

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Ministry of Finance (MoF) has issued detailed guidelines on issuance of summons under the Goods and Services Tax (GST) Law. These instructions have been issued in order to cater to cases where summons were being issued to top senior officials of companies in a routine manner to call for material evidence/ documents.

We had filed representation and had meetings with several officials of Central Board of Indirect Taxes and GST Policy Wing to discuss the issues being faced by the Industry. Our representation can be accessed from here.

The instruction around modus operandi to be followed has been addressed and to that extent, this is a huge win. We hope that the Instruction is implemented in spirit at the ground level.

Brief summary of the Instruction is provided below:

  • Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Deputy/Assistant Commissioner with the reasons for issuance of summons to be recorded in writing.
  • Summons should indicate the name of the offender against whom the case is being investigated, so that the recipient of the summons has prima-facie understanding as to whether he is an accused or a witness.
  • Issuance of summons may be avoided to call upon statutory documents which are available online in the GST portal.
  • Senior management officials such as CMD/MD/CEO/CFO should not be issued summons in the first instance unless there is a clear indication of their involvement in the decision which led to revenue loss.
  • Issuance of repeated summons without ensuring service of the summons must be avoided.

We will continue to engage with CBIC and GST officials to minimise issues being faced by the Industry.

We hope you will find the update useful. Copy of the Instructions are attached for your reference.


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Download Attachment

Instruction No. 03 2022-23.pdf

Tejasvi

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