Specific instances have come to the notice of the Board and Central Vigilance Commission wherein proper procedures have apparently not been followed during search proceedings and/or the Panchama’s/ statements have not been recorded as per extant guidelines & instructions.

I am directed to refer to the section 83 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”). This section provides for provisional attachment of property for the purpose of protecting the interest of revenue during the pendency of any proceeding under section 62 or section 63 or section 64 or section 67 or section 73 or section 74 of the Act.

CGST field formations regularly detect cases of GST evasion/ misuse of input tax credit (ITC) facility. Many of these cases involve substantial Government revenue and also involve leading business houses or sensitive issues.

Kind attention is invited towards Board’s Instruction No. 13/2018 — Customs dated 29″ August, 2018 regarding Information Sharing Protocol with CEIB.

A detailed analysis to pursue trends in cases of GST evasion & fraudulent ITC availment booked viz-a-viz number of SCNS issued against for the FY 2017-18 [w.e.f. July 2017], 2018-19 & 2019-20, have been made and it is observed that in GST evasion cases booked and in the Fraudulent ITC cases booked, during the above-mentioned period, SCNs have been issued only in few cases.

Rule 86,4 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as”the Rules”) provides that in certain circumstances, Commissioner or an officer authorised by him, on the basis of reasonable belief that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible, may not allow debit of an amount equivalent to such credit in electronic credit ledger.