In this blog post, we will be discussing the various duties and guidelines to be followed by a taxpayer when issued with a summons under GST laws. A summons can be issued for multiple reasons, such as an inspection or investigation undertaken by the tax authorities. As a taxpayer, it is essential to understand your rights and comply with the various requests made by the tax authorities. Failing to do so may lead to penalties and additional liabilities. So without further ado, let’s get started!
What are Summons under GST Laws?
A Summons is a formal document issued by the GST officers of a department requesting the presence of a person at a specified place and time to give evidence or produce documents in relation to an inquiry.
What are the Different Types of Summons Under GST?
Summons for examination:
A summons for examination may be issued when the Tax Officer has reason to believe that you have suppressed turnover or have availed ineligible ITC. The summoned person is required to appear before the Tax Officer on the date and time specified in the Summons, to answer any questions relating to their business.
Summons for production of documents:
A summons for the production of documents may be issued when the Tax Officer requires certain documents or information from the summoned person concerning their business. The called person is required to appear before the Tax Officer on the date and time specified in the Summons and produce the necessary documents.
Summons for inspection of premises:
A summons for inspection of premises may be issued when the Tax Officer requires access to the business premises of the summoned person in relation to an ongoing inquiry. The called person must allow the Tax Officer access to their premises on the date and time specified in the Summons.
What are the Duties of a Person Who Has Been SummoneD?
It is the duty of the person served with a summons to comply with the requirements of the Summons. This includes appearing before the Tax Officer on the date and time specified and not providing false statements tantamount information or documents that have been requested.
What are the Penalties for Non-Compliance with Summons?
If a person fails to comply with a summons, they may be liable to pay a penalty of up to Rs.20,000. In addition, they may also be liable for any taxes due as a result of the inquiry.
What are the Rights of a Person Who Has Been SummoneD?
The following rights apply to a person who has been served with a summons:
- The right to know the reason for the Summons
- The right to legal representation
- The right to question the Tax Officer
- The right to request an adjournment.
What are Taxpayers’ Duties and Guidelines?
As a taxpayer, it is important to understand your rights and comply with the various requests made by the tax authorities. Failing to do so may lead to penalties and additional liabilities. The Supreme Court of the Indian penal code has clarified the duties and guidelines for taxpayers under the GST (Goods and Services Tax) laws. The taxpayers are expected to adhere to the specific duties and guidelines mentioned under the GST laws. An earlier incorrect statement or any information given to the tax authorities may result in judicial proceedings and constitute police officers. Such incorrect statements may lead to serious consequences for the taxpayer. Hence, taxpayers must know their duties and obligations while filing returns and interacting with the tax authorities.
The following are some of the key duties and guidelines to be followed when issued with a Summons under GST laws:
- Appear before the Tax Officer on the specified date and time
- Produce the required documents
- Answer any questions relating to your business
- Cooperate with the Tax Officer in their investigation
- Do not destroy any records or documents that may be relevant to the inquiry
- Seek professional help if required
summons proceedings issued under GST laws can be a stressful experience for taxpayers. However, by understanding your rights and complying with the requests made by the summoning officer of Tax, you can ensure that the process is completed smoothly.
How to challenge or dispute a summons if necessary?
If you believe a Summons issued to you is unjustified, you can file an appeal with the Appellate Authority within 30 days of receiving the Summons.
The Appellate Authority will review the Summons and decide whether it is justified. If the Appellate Authority decides that the Summons are not justified, they may cancel them.
However, if the Appellate Authority decides that the Summons is justified, they will confirm the Summons, and the taxpayer must comply.
It is important to note that taxpayers can only file an appeal against a Summons if they have received one. In addition, taxpayers cannot file an appeal against an inquiry or investigation conducted by the GST department.
We hope this blog post has been helpful in understanding Summons under GST laws. If you have any further questions, please feel free to get in touch with us.
This article is intended for informational purposes only and should not be construed as legal or Tax advice. You should consult a professional advisor if you require any further clarification.