For GST summons and notices, CBIC will issue an SOP

11 Jul 2022 , 10:05 AM

For the purpose of protecting businesses from harassment, the Central Board of Indirect Taxes and Customs (CBIC) will shortly release a comprehensive standard operating procedure (SOP) for issuing summons and notifications under the goods and services tax (GST) system.

The new SOP would also enable the board to closely monitor the GST investigation’s progress and the chosen path of inquiry, according to authorities, who said this will increase accountability and transparency in the process.

They said that because there isn’t a defined code of conduct for officials, it has been challenging for the agency to draw the line thus far. One officer, who wished to remain anonymous, stated that summons and notices are two problematic things for which there is no SOP under the GST. “Once an SOP is in place, we may investigate any violations.”

The official stated that the document is virtually complete and that there have been thorough conversations with field formations and other stakeholders, including companies.

The number of tax notifications that GST inspectors have issued in recent months has increased, asking CXOs, finance heads, and even chief executives to appear in person for a hearing. Additionally, summons were issued to businesses repeatedly.

The planned SOP, according to the source, will also prevent notices from being sent under both state and federal authority at the same time. Businesses had complained that they occasionally received many notifications on the same issue, which made compliance challenging for them and took a lot of time. CBIC had periodically been sending circulars to authorities on this.

The board instructed its field formulations in May that tax officials would be held accountable if a taxpayer was forced to pay taxes voluntarily during a search and that the collection of unpaid debts should take place after the issuing of adjudication orders rather than during searches.

The action was taken in response to an increase in complaints regarding the use of force and coercion by tax authorities in order to “recover” money during searches or inspections.