{"id":52292,"date":"2023-02-09T11:17:05","date_gmt":"2023-02-09T05:47:05","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=52292"},"modified":"2023-04-11T12:19:50","modified_gmt":"2023-04-11T06:49:50","slug":"summons-under-gst-act","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/","title":{"rendered":"An Overview of Summons under GST Act"},"content":{"rendered":"\n<p>The Central Good and Services Tax Act of 2017 grants powers to officers appointed under the Act to make specific enquiries, call for documents or a thing or demand the presence of any person. Section 70 of the <strong>Goods and Services Act or GST of 2017<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/15689\/1\/A2017-12.pdf\"><strong>[1]<\/strong><\/a><\/sup> lays down the law applicable to issuing summons to initiate an enquiry under the Goods and Services Act. The GST law has imbibed many of the attributes associated with its parent laws, like service tax, <a href=\"https:\/\/corpbiz.io\/learning\/difference-between-vat-and-gst\/\"><strong>Value Added Tax<\/strong><\/a> or VAT, and excise duty, among others. The process pertaining to adjudication has been borrowed from the previous laws. Summons form an integral part of the adjudication process under any law, including the GST Act. Scroll down to check more information regarding Summons under GST Act.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Summons_Under_GST_Act_%E2%80%93_Brief\" >Summons Under GST Act &#8211; Brief<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#What_shall_a_Summon_Include_%E2%80%93_Summons_under_GST\" >What shall a Summon Include? \u2013 Summons under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Non-Compliance_of_Summons_under_GST\" >Non-Compliance of Summons under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Actions_on_Receiving_a_GST_Summons\" >Actions on Receiving a GST Summons<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Checklist_to_ensure_the_validity_of_the_Summons_under_GST\" >Checklist to ensure the validity of the Summons under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Rights_and_Duties_of_the_Taxpayer\" >Rights and Duties of the Taxpayer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/summons-under-gst-act\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summons_Under_GST_Act_%E2%80%93_Brief\"><\/span>Summons Under GST Act &#8211; Brief<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Summons pertains to the procedure using\nwhich an officer demands or calls upon the attendance or presence of any\ntaxpayer or any other person. The very first step of every enquiry, under any\nlaw, commences with the issuance of summons. The provisions pertaining to\nsummons under the law with respect to GST are provided for under Section 70 of\nthe GST Act of 2017.<\/p>\n\n\n\n<p>Section 70 of the GST Act of 2017 states that the\nofficer empowered by the Act shall be granted the power to summon the presence\nof any person for the purpose of providing evidence and submitting documents\nfor the purpose of the inquiry. Such an officer shall be vested with the powers\nof a civil court as is provided under the provisions of the code of Civil\nProcedure of 1908. The proceedings conducted by such an officer shall have the\neffect of judicial proceedings. They shall be considered so for the purposes of\nvarious provisions of the Indian Penal Code of 1860. Guidelines in relation to\nthe issuance of summons were released in August 2022 to provide detailed\ninstructions on how to issue summons and conduct proceedings thereafter.\nPursuant to Section 70 of the GST Act of 2017 and the guidelines, proper\nofficers empowered under the law shall have the power to summon any person whose\nattendance she considers necessary to obtain evidence order document any other\nthing for an enquiry in the same manner as a civil court pursuant to the\nprovisions of the Code of Civil Procedure of 1908.<\/p>\n\n\n\n<p>Before the enactment\nof the GST Act, the summoning authority was first required to inform senior\nauthorities and then approach the civil court to execute summons against any\ntaxpayer. However, post the enactment of the GST Act, the summoning authority is\nno longer required to approach the civil court for the execution of summons in\nsituations where taxpayers deliberately disobey any summons issued. Issuing\nsummons is an essential tool which is used by the department to obtain\nstatements or documents or information from any person with the purpose of\nlooking deep into tax evasions. However, the process of issuing summons must be\ndone judiciously, along with due consideration. Moreover, restraint and caution\nshould be exercised not to use this provision frivolously. It should only be\nused as a last resort with due justification in cases where there is a\ndeliberate defiance in responding accordingly to the summons under GST. It\nshould only be used as a shield, not as a weapon of attack to curb the freedom of\nthe taxpayer should only be used to protect the law of the land. Summons can be\nissued to give evidence through statements given on oath or production of\naccounts, books, documents, or other things. However, summons can only be\nissued in case of pendency of an enquiry being conducted duly under the law.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_shall_a_Summon_Include_%E2%80%93_Summons_under_GST\"><\/span>What shall a Summon Include? \u2013 Summons under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A summons for enquiry under the GST shall include the following details:<\/p>\n\n\n\n<ul><li>The Document Identification Number or DIN\nmust be generated and mentioned on the GST summons that has been issued for the\npurpose of investigation. The validity of the summons shall come into question\nin case the DIN is not present on the summons under GST.<\/li><li>The language which has been used in the\nsummons must be civil and must not be such that it amounts to harassment of the\ntaxpayer.<\/li><li>The summons must be prepared in a manner\nwhich justifies the reason for which it is being issued.<\/li><\/ul>\n\n\n\n<p><strong><em>The 2022 circular and instructions pertaining to the summons, which has\nbeen issued by the Central Board for Indirect Taxes or CBIC, contain the\nfollowing details:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The superintendents can issue summons only\nafter taking prior approval through written permission from the officer. The\nrank of the officer shall not be below the assistant commissioner or deputy\ncommissioner rank. There should also be a written record mentioning why a particular\nsummons is being issued.<\/li><li>Where written permission in advance, as\nmentioned above, cannot be obtained, an oral permission or telephonic\npermission may be obtained, which shall later be converted into the written\nform. It is imperative that this is intimated to the summoning officer compulsorily\nas soon as possible.<\/li><li>The GST Officer who is in charge of issuing\nsummons is required to maintain a file to record the fact of appearance or\nnon-appearance of the person on whom summons have been issued. This file must mandatorily\nform part of the records. Moreover, a copy of the statement of the recipient of\nthe summons, if any, must also be placed in the records additionally.<\/li><li>The summons must clearly include the details\nof the offenders so that the recipient of the summons can gauge whether she is\nbeing summoned as an accused, a co-accused or witness or any other capacity in\nwhich she is being summoned. However, the name of the accused may be excluded\nin cases where such inclusion can have detrimental effects on the process of\ninvestigation.<\/li><li>In cases where the summons has yet to be\nserviced, the summoning officer is required to refrain from repeatedly issuing\nsummons and is advised to issue up to three summons at regular intervals.\nHowever, there is no restriction under the law on the upper limit of the number\nof times a summons can be issued.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Non-Compliance_of_Summons_under_GST\"><\/span>Non-Compliance of Summons under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Proceedings conducted by proper officers in the exercise of powers in\nrelation to the issuance of summons are considered a judicial proceedings.\nFailure to respond to the summons in accordance with the mandate on it can attract\nprosecution under various provisions of the Indian Penal Code of 1860 for\neither failing to appear on the date, time and venue specified on the summons\nwithout any reasonable justification or providing false evidence or the person\nis found to be absconding to avoid the receipt of summons or the recipient\nfails to produce any documents or electronic records as provided in the summons\nor fails to appear even after summons have been issued repeatedly.<\/p>\n\n\n\n<p>Non-Compliance with the summons under GST,\nwhich has duly been issued by an authority empowered under the law, is an\noffence under the Indian Penal Code of 1860 under Sections 174 of Section 175.\nAs per Section 174 of the IPC, every person who is\nlegally bound to appear but does not do so commits an offence under the section.\nPunishment includes imprisonment, which can extend up to one month or a fine\nwhich may extend up to \u20b9500 or both. Section 175 of the IPC states\nthat when the person is weekly bound to produce documents to do so shall be\npunished with imprisonment, which shall extend up to one month, or a fine which\nmay extend up to \u20b9500 or with both. Suppose a taxpayer\nintentionally provides false evidence or fabricates such evidence with the\nintention of using it during any stage of the enquiry process while responding\nto the summons which has been issued under section 70 of the GST Act of 2017.\nIn that case, he shall be deemed to have committed an offence under the Indian\nPenal Code. He shall be punished with imprisonment, which can extend up to\nseven years, and shall also be liable for a fine as provided under Section 193\nof the Indian Penal Code. <\/p>\n\n\n\n<p>In addition to the aforementioned, a monetary penalty shall also be\nimposed on the person on for whom the summons was issued under Section 122 (3)\n(d) of the GST Act for failing to appear after the summons has been issued or\nfailing to provide documentary evidence Despite summons being issued. The\npenalty will amount to \u20b925,000. Moreover, suppose the person refuses\nto make a statement before the summoning officer as required. In that case, the\nsummoning officer is duty-bound to inform her superior officer, who shall intimate\nthe same to a magistrate.<\/p>\n\n\n\n<p>Hence, it is advisable to duly respond and appear before the summoning\nofficer at the designated time and place when a summons under GST law has been\nissued. This holds true for every person, regardless of the fact that they are\nregistered under the GST law or not. As mentioned above, failure to do can lead\nto penalties under the GST Act in addition to prosecution under various\nprovisions of the Indian Penal Code of 1860, which can lead to additional fines\nor imprisonment or both. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Actions_on_Receiving_a_GST_Summons\"><\/span>Actions on Receiving a GST Summons <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Summons is generally\nthe starting point for any inquiry or investigation, and one is required to\nattend to the summons received with due care to avoid legal complications in\nthe future. Once a summons is obtained from appropriate\nofficers under the GST law, the person is required to present themselves before\nthe summoning officer on the proper date and time, which has been specified in\nthe summons, along with required information and supporting documents, if any. Failure to act in\naccordance with the summons will attract a penalty and may also attract\nprosecution as mentioned above. An exception is granted to women who do not\ntraditionally appear in public and to some other privileged persons as provided\nunder section 132 section 133 code of Civil Procedure of 1908. Such people are\nnot required to appear when the summons is issued.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Checklist_to_ensure_the_validity_of_the_Summons_under_GST\"><\/span>Checklist to ensure the validity of the Summons under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On receiving a summons issued by a GST\nofficer, the recipient must check whether the summons contains a computer\ngenerated DIN or document identification number. The language of the summons\nshould be civil and must mention the reason for which it is being issued. It\nmust be in accordance with and in the format as is provided in the instructions\nreleased by CBIC in 2022.<\/p>\n\n\n\n<p>The following checklist must be kept in mind\nwhen a summons has been received:<\/p>\n\n\n\n<ul><li>Ensure that the summons has been in the\nwritten format as mandated by the authorities and with reasons for the\nissuance.<\/li><li>The name of the offender is clearly mentioned\non the summons in a manner that allows the recipient to understand the context\nfor which the summons is being issued for and the capacity in which the\nrecipient is being summoned, namely, whether as a witness or an accused or a\nco-accused.<\/li><li>Summons cannot be issued if all the required statutory\ndocuments have already been uploaded on the GST portal online.<\/li><li>Summoning officers cannot issue summons to\nany of the senior management of the companies, like the CEP or CFO or CMD or\nMD, unless investigations clearly indicate that the aforementioned have been\ndirectly involved in any of the decision making processes that may have caused\nthe contravention for which summons under the GST law is being issued.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rights_and_Duties_of_the_Taxpayer\"><\/span>Rights and Duties of the Taxpayer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Taxpayers have certain rights and duties\nprovided for under the GST law, and it is imperative for them to be aware of\nthe same, especially in situations where they receive Assam means under the GST\nlaw. Such awareness shall ensure that they remain protected from unwanted\nactions and abuse of power from certain officials. The CBIC clearly mandated\nthat summons must be issued only when the taxpayer is clearly not being\ncooperative. The summons for appearance must mention reasonable hours for\nappearance before the summoning officer.<\/p>\n\n\n\n<p>Below mentioned are certain rights which\nevery taxpayer has under the GST law:<\/p>\n\n\n\n<ul><li><strong>Right to Remain Silent<\/strong><\/li><\/ul>\n\n\n\n<p>The right to remain silent is the right\ngranted by the constitution of India, and it applies to the proceedings under\nGST law as well. Suppose a taxpayer is under the impression that answering a\nquestion may lead to incrimination or is uncertain about the answer. In that\ncase, she shall be well within her rights if she chooses to remain silent.<\/p>\n\n\n\n<ul><li><strong>The Right of Retraction<\/strong><\/li><\/ul>\n\n\n\n<p>It is often seen that the GST officers have\nthe tendency to intimidate and pressurise taxpayers, which often leads the\nlatter to provide inaccurate information in the form of statements that are\nrecorded. In such situations, the taxpayer shall have the right to retract an\nearlier made statement and submit a fresh statement to provide an accurate\nresponse as required by the GST officials.<\/p>\n\n\n\n<ul><li><strong>Right to Cross-Examine<\/strong><\/li><\/ul>\n\n\n\n<p>There can be instances where the GST\nofficials may attempt to use adverse statements which have been made by 3rd\nparties against the taxpayer. In such situations, the taxpayer shall have the\nright to cross examine such 3rd parties regarding the statements made by them\naffecting his interests for the purpose of checking the validity of such\nstatements.<\/p>\n\n\n\n<ul><li><strong>Right to refer to relevant documents.<\/strong><\/li><\/ul>\n\n\n\n<p>When the taxpayer makes any statement to a\nGST officer, the taxpayer has the right to refer to relevant documents like the\nbook of accounts for the purpose of providing an accurate and complete\nstatement that shall go on record. The taxpayer is required to provide to the\nGST officer the required information to the best of her knowledge, as\nmisleading or incorrect statements may lead to penalty or attract prosecution\nunder the Indian Penal Code of 1860. The Supreme Court of India has held that\nstatements made to a GST officer shall amount to evidence under the Indian\nEvidence Act of 1872 and shall be admissible as such. Moreover, since GST\nofficers are not considered police officers, any statements made to them shall\nnot be hit by the embargo, which is attached to statements which are made to\npolice officers. Hence, statements made to them shall qualify as evidence. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Summons pertains to the procedure using which an officer demands or calls upon the attendance or presence of any taxpayer or any other person. The very first step of every enquiry, under any law, commences with the issuance of summons. The provisions pertaining to summons under the law with respect to GST are provided for under Section 70 of the GST Act of 2017. It is prudent to duly respond and appear before the summoning officer at the designated time and place when a summons under GST law has been issued. Failure to do can lead to penalties under the GST Act in addition to prosecution under various provisions of the Indian Penal Code of 1860, which can lead to additional fines or imprisonment or both. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/guide-on-gst-online-registration-process\/\">GST Online Registration Process: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Good and Services Tax Act of 2017 grants powers to officers appointed under the Act to make specific enquiries, call for documents or a thing or demand the presence of any person. Section 70 of the Goods and Services Act or GST of 2017[1] lays down the law applicable to issuing summons to [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":52295,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[3066],"acf":{"service_id":"132"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":3135,"readingTime":9,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52292"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=52292"}],"version-history":[{"count":4,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52292\/revisions"}],"predecessor-version":[{"id":54879,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/52292\/revisions\/54879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/52295"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=52292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=52292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=52292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}