No more fishing inquiries, GST officials told
Mint, said that when starting a probe or seeking information which are based on records or are reflected in the statutory books of account or filings, then letters should be written to the designated officers of the business instead of issuing summons. This procedure applies in the case of a listed company, or state-owned enterprise, government department or agency or any other authority, the guidelines said. Such letters have to specify the reasons for investigation and the legal provisions.
Any divergence from this practice at initial stage must be backed by written reasons, the guidelines said. The new procedures are issued after extensive consultations at the DGGI Annual Conference held in Goa last November, said the official. In letters seeking information or documents from regular taxpayers, instead of referring to inquiry “against" an entity, the reference can be to inquiry "with respect to" that entity.
Also, a summons should not be used as means to seek information filled in formats or pro forma. Vague or general expressions, such as 'GST enquiry' or 'evasion of GST' or 'GST evasion' etc should not be mentioned in the letter to a regular taxpayer. Such letters should disclose the specific nature of the inquiry being initiated, the guidelines said.
Information available digitally or online on the GST portal should not be called for under letter or summons, the guidelines said. Before summoning any information or document from a regular taxpayer, the propriety of what is being sought must be recorded, ensuring that it is holistic and result of preparation, so as not to have repeated issuance of summons seeking piecemeal information. "Addressing letter/summons with context or content akin to a fishing inquiry is
. Read more on livemint.com
