Tax investigation: Detailed SOP in works for DGGI officials

New Delhi: The Central Board of Indirect tax and Customs could come out with a directive on the process to be followed by officials of the Directorate General of Goods and Services Tax Intelligence (DGGI) during a tax investigation, especially of multinational companies.

People familiar with the matter said the proposed circular is likely to direct the investigation arm to desist from questioning CXOs at late hours and taking tax payments during a search operation.

This comes after several multinational companies represented to the finance ministry about the investigation process, especially questioning of CXOs.

"There is a case for revisiting the instructions on DGGI investigation and questioning for ease of doing business," a senior government official told ET.

The official said the draft is being worked upon after taking feedback from industry as well as department officials.

"In cases where there is a question of interpretation, you cannot treat management like criminals. While the top officials are sensitive, the field officers sometimes are rude," said a senior executive of a company, who was questioned in December. The executive said he was questioned till late night and then was called again in the morning.

The official cited earlier said such incidents are an exception. The Centre is working on the feedback, he added.

"If a company is cooperating in the investigation, there is no need to summon CXO," the official said, adding that late night questioning should be avoided.

In 2022, the CBIC had issued instructions to all field formations on issuing summons.

It had directed field formations to not issue summons to a company's top management to call for evidence or documents at the first instance.