CBIC Directs for Applying Para 2(g) of Instruction No. 1/2023-24-GST (INV.) in Audit Matters | Instruction

Instruction No. 03/2024-GST dated August 14th, 2024

The CBIC has earlier issued detailed instructions vide Instruction No. 1/2023-24-GST (INV.) dated March 30th, 2024 to provide the guidelines to be followed by the CGST field formations while engaging in investigation and inquiry to ensure a uniform procedure in carrying out enforcement activities. Now, the CBIC has issued instruction to apply para 2(g) of Instruction No. 1/2023-24-GST (INV.) in audit matters and it would apply to on-going audit proceedings too.

The para 2(g) provides that a scenario may arise where the taxpayer(s) is/are following, or have followed, a prevalent trade practice based on particular interpretation on that issue in the sector/industry. In such cases, it is desirable that the zonal (Pr.) Chief Commissioner make a self-contained reference to the relevant policy wing of the Board i.e. the GST Policy or TRU.

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