Officials will not be able to investigate big companies without approval, instructions issued for Central GST officers

The approval of their regional Principal Chief Commissioners is now required for GST regional officers before they can open an investigation against a large industrial house or a significant multinational corporation. Before imposing a duty on goods or services for the first time, they will also need the approval of the Principal Chief Commissioners in each region.

Officers of the Central GST (CGST) have guidelines from the Central Board of Indirect Taxes and Customs (CBIC). It states that the Principal Commissioner may investigate all cases about a taxpayer from a single office when the taxpayer is under investigation by State GST and DGGI officers. After they begin their investigation, the tax authorities have a year to finish it.

CBIC further said, that to initiate an investigation in respect of any listed company or public sector company (PSU) or seek details from them, CGST authorities should issue an official letter instead of sending a summons to the designated officer of the entity. This letter should detail the reasons for the investigation and demand the production of documents within a reasonable period. Tax authorities should not ask the taxpayer for information which is already available online on the GST portal.