In GST-related offences, now an arrest can be done but only if the amount exceeds ₹2 crore and the tax officials have a reason to believe that the person concerned can tamper with evidence, according to Central Board of Indirect Taxes and Customs’ (CBIC's) latest guidelines, reported Business Line.
Besides this, the organisation’s top management will not be summoned at the first instance.
CBIC’s GST investigation wing issued two sets of instructions — one related to arrest and bail, and the other on issuance of summons. Experts believe these will not only bring clarity for officers, but also ensure that businesses do not face ad-hocism.
Summons should be issued only after obtaining approval from an officer not below the rank of DC/AC. The reason for the same has to be recorded in writing. Summons should be avoided for calling documents available on the GST portal.
Also, the senior management of a company can be summoned only upon clear indication of involvement, the guidelines said.
Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co, termed these guidelines ‘the need of the hour’, as there is an increased trend among field formations to summon the senior management, routinely.
“This will go a long way in preventing undue harassment of senior company officials, particularly when they may not be involved in routine compliance matters,” he said.
On the terms of arrest and bail, the guidelines say that a commissioner should have reason to believe (based on credible material data and must be unambiguous) that the person has committed the offence of making a supply without issuing an invoice or issuing invoice without any supply or fraudulently getting input tax credit and the amount involved exceeds ₹2 crore.