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To ensure transparency, CGST officials now require written approval before investigating major corporations.
The Department of Revenue mandates approval from the Principal Commissioner for investigations involving big industrial houses and MNCs. The move aims to maintain ease of doing business while ensuring transparency.
Under the guidelines, approval is necessary for sensitive matters and those with national implications. This includes cases before the GST Council and first-time levies on sectors or services. Tax experts seek clarity on defining ‘big industrial house’ and major MNCs.
Officials must collect details on prevalent trade practices and transaction nature, ensuring justifications for probes. The CBIC emphasises a uniform procedure to address industry concerns and ensure tax certainty.
KPMG’s Abhishek Jain highlights potential for stability if the guidelines are effectively implemented.
‘If adhered to, these guidelines could bring about tax certainty and stability in our country’s business landscape,’ says KPMG’s national head for indirect tax, Abhishek Jain.
The directive also emphasises the need to avoid duplication of inquiries already initiated by other investigating offices or tax administrations. This ensures a streamlined process and prevents unnecessary burden on taxpayers.
With these measures in place, the focus is on maintaining transparency, efficiency, and fairness in the investigation process. The aim is to strike a balance between enforcing tax compliance and facilitating a conducive environment for businesses to thrive.
As the implementation of these guidelines unfolds, businesses and tax experts will closely monitor their impact on the ease of doing business and the overall tax landscape.
