GST Summons – Know Your Rights

Under the Goods and Services Tax (GST) regime in India, the authorities possess the power to summon individuals for inquiries related to tax matters. Understanding your rights and obligations when receiving a GST summons is crucial for ensuring compliance and protecting your interests. This article provides a comprehensive overview of the legal framework governing GST summons, the guidelines for their issuance, and the rights and duties of taxpayers in this context.​

Legal Framework: Section 70 of the CGST Act

Section 70 of the Central Goods and Services Tax (CGST) Act, 2017, empowers proper officers to summon individuals to provide evidence or produce documents pertinent to any inquiry under the Act. Specifically.

1. Authority to Summon: The proper officer has the authority to summon any person deemed necessary to give evidence or present documents relevant to an inquiry, similar to the procedures outlined in the Code of Civil Procedure, 1908.
2. Judicial Proceedings: Such inquiries are considered “judicial proceedings” under Sections 193 and 228 of the Indian Penal Code, implying that false statements or non-compliance can lead to legal consequences. 

An amendment introduced by the Finance Act (No. 2) Act, 2024, further clarifies that individuals summoned are obligated to attend either in person or through an authorized representative, as directed by the officer. Those appearing must truthfully respond during examinations and produce the required documents. ​

Guidelines for Issuance of Summons

To prevent the misuse of summons and ensure they are issued judiciously, the Central Board of Indirect Taxes and Customs (CBIC) has established specific guidelines:​

1. Prior Approval: Superintendents must obtain prior written permission from an officer not below the rank of Deputy or Assistant Commissioner before issuing a summons. The reasons for issuing the summons should be documented in writing. ​
2. Documentation: Officers issuing summons must record details regarding the appearance or non-appearance of the individual and maintain copies of any statements made. 
3. Avoiding Senior Management Summons: Senior officials such as CEOs or CFOs should not be summoned in the first instance unless there is clear evidence of their involvement in decisions leading to revenue loss. ​
4. Use of Document Identification Number (DIN): All summonses must include a DIN, ensuring authenticity and traceability. 
5. Presence of Summoning Officer: The officer who issues the summons must be present at the scheduled time and date. If unable to attend, the summoned individual should be informed in advance. ​
6. Respecting Traditions and Privileges: Certain individuals, such as women who traditionally do not appear in public, may be exempt from appearing in person, in line with Sections 132 and 133 of the Code of Civil Procedure. 
7. Avoiding Repeated Summons: Repeatedly issuing summons without ensuring proper service should be avoided. If an individual fails to comply after three summonses at reasonable intervals, a complaint may be filed with the jurisdictional magistrate under Sections 172 and 174 of the Indian Penal Code. ​

Rights of the Summoned Individual

As a taxpayer, it’s essential to be aware of your rights when summoned:

1. Right to Retract a Statement: If a statement was made under duress or coercion, you have the right to retract it and provide a corrected version. ​
2. Right to Remain Silent: You are not obligated to answer questions that may incriminate you. Article 20(3) of the Indian Constitution protects individuals from self-incrimination. 
3. Right to Cross-Examine: If adverse statements from third parties are presented against you, you have the right to cross-examine those individuals to challenge the veracity of their statements.

Duties of the Summoned Individual

Alongside rights, certain obligations must be fulfilled:

1. Mandatory Appearance: You are legally bound to appear before the GST officer as specified in the summons, either personally or through an authorized representative. Non-compliance can lead to penalties and legal action. ​
2. Truthful Disclosure: All information provided and documents submitted must be accurate and complete. Providing false evidence can result in prosecution under Section 193 of the Indian Penal Code. 
3. Compliance with Document Production: Any documents or electronic records requested in the summons must be produced. Failure to do so can lead to penalties under Section 122(3)(d) of the CGST Act, amounting to ₹25,000. 

Consequences of Non-Compliance

Ignoring or evading a GST summons can have serious repercussions:​

• Legal Prosecution: Non-appearance or failure to produce requested documents can lead to prosecution under Sections 172, 174, and 175 of the Indian Penal Code. ​
• Monetary Penalties: A penalty of up to ₹25,000 may be imposed for failure to comply with a summons. ​
• Arrest Warrants: Persistent non-compliance may result in the issuance of arrest warrants and attachment of property. ​

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