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DGGI issues guidelines against repeated summoning of CEOs of large firms

  • Oct 19, 2020 | Divita S Gupta

DGGI issues guidelines against repeated summoning of CEOs of large firms

The Directorate General of GST Intelligence has issued a circular featuring guideline to reduce the impact of tax evasion investigations. The circular issued by the DGGI stated, ‘As an enforcement agency, it is imperative for the DGGI to maintain a balance wherein investigations should proceed strictly, as per law, while simultaneously ensuring that no excesses are meted out to the taxpayers and their sensibilities are respected.’

This means standard practices of summoning personnel for tax evasion investigations is likely to be reduced unless the investigation specifically demands a summons. The DGGI has also directed tax authorities to ensure the recording of a comprehensive statement in the first instance of a summons so as to reduce repeated summons of personnel. Finally, the DGGI has prescribed that the summons for calling for information should be used to gather all relevant information in one sitting and not in bits and pieces. 

The circular also threw light on other guidelines during investigations or search and seizure activities. These guidelines include the maintenance of social distancing due to the COVID 19 pandemic; being respectful towards the religious beliefs of persons even if they are under investigation and allowing women to exit a premises before conducting a search. 

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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