GST probe wing told not to directly call CEOs, CFOs

THE CENTRAL BOARD OF Indirect Tax and Customs (CBIC) has directed officials in the Directorate General of Goods and Services Tax Intelligence (DGGI) to follow a "bottom-up" approach while investigating tax liability of multinational companies (MNCs).

- PRIYANSH VERMA

In internal guidelines issued recently, the indirect tax board instructed officials at field formations to first question the "authorised person" in an MNC, responsible for ensuring tax compliance, instead of directly summoning the company's chief executive officer (CEO), chief financial officer (CFO) or directors at the first instance.

"Several MNCs had approached the finance ministry earlier, and had mentioned the issues the top management face in the hands of DGG officials... the new guidelines are expected to address such concerns," a senior official said, on condition of anonymity.

OFTEN DURING GST investigation, directors/CEOs are asked to be present in person, and are unable to respond to these calls all the time due to their busy schedule. Though they would be conversant with the business, they may still not be able to clarify on the questions regarding the tax liabilities of the firms they lead or compliance issues being raised by the taxman, say independent tax analysts.