Summons Under GST- Rights and Duties of a Taxpayer
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What is a summons under GST?
A summons is an order issued by a court or a government administrative body requiring any individual to appear in person in court or at the relevant office. Section 70 of the CGST Act 2017 empowers GST officials to summon anyone to testify or present documents during an investigation. Failure to appear before the officer in question may result in a fine.
Who can issue a summons?
You must determine who issued the summons under GST. Audit authorities are not permitted to issue summons under GST. The Directorate General of GST Intelligence exercises this function. The DGGI is the highest-ranking investigative agency in charge of investigating GST violations.
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Types of Summons
Civil summons
A civil summons is a court order compelling an individual or business to appear before a judge and reply to a plea submission. A court summons is categorised more specifically as a civil summons. With this kind of summons, the defendant is informed that a civil action has been brought against them, and they must appear in court to defend themselves against the claims. A civil action often entails a lawsuit for financial compensation for loss or harm and an injunction to oblige someone to do something.
Here are some examples of civil lawsuits:
- Lawsuits for breach of contract
- Suspension
- Claim the money you own
- Infringement on intellectual property
Criminal summons
A criminal summons is the kind of judicial summons that notifies someone that they must appear in criminal court. A criminal court may issue different types of warrants depending on your jurisdiction. Various summons is issued in the criminal proceeding framework; some are issued by the police, while the prosecutor issues others.
For example-
- A citation
- Traffic summons
- Notice to appear
Administrative summons
An administrative summons is a judicial summons issued by an administrative body legally authorised to carry out a specific investigation or legal matter. For example, each jurisdiction will have a tax authority handling all tax matters. The tax authority might have the power to summon you to appear and provide information about your taxes.
Administrative summons can be issued by a variety of administrative courts, including:
- Tax Court
- Immigration court
- Labour court
- Professional code
Duties of a taxpayer
Summons are as important under GST as court processes are under the IPC. It will help if you exercise caution when dealing with tax officials. In such cases, tax officers may request the disclosure of documents and take statements from employees, executives, or key management personnel.
Unlike comments made in front of police officers, statements made in front of GST officials can be used as evidence against the taxpayer. The Supreme Court ruled in one case that because customs officials are not police officers, any comment made in their presence can be used as evidence. Similarly, the Telangana High Court ruled that any testimony before them is admissible because GST officers are not police officers.
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Rights of a taxpayer
Taxpayers must be aware of their rights to avoid mistreatment by GST officials. This section explains how taxpayers can defend themselves against GST summonses. The CBIC issued detailed regulations to govern summons proceedings, including one stating that summons should only be used as one last-ditch effort if the taxpayer refuses to cooperate and should not be required to appear at odd hours. Furthermore, the summons should not contain aggressive language that may worry the taxpayer. It ought to be self-explanatory. Aside from that, as a taxpayer, you should be aware of several other essential rights.
Right to retract a statement
Officials frequently apply undue pressure on taxpayers, making them fearful and forcing them to provide inaccurate information. In such cases, taxpayers can replace the incorrect statement with the correct one. This safeguard protects taxpayers from tax authorities taking action against them due to inaccurate submissions.
Right to remain silent
When a taxpayer is uncertain about a question, they can remain silent. It is a legal right granted to taxpayers. The High and Supreme Courts have determined that silence is not criminal. Article 20(3) of the Indian Constitution guarantees the fundamental right against self-incrimination. It states that no one charged with a crime shall be required to testify against themselves. Furthermore, Section 161 of the CrPC states that no one is obligated to answer any question that could lead to a criminal charge.
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Right to cross-examine
Tax authorities may sometimes attempt to manipulate the summoned person by referring to an adverse statement made by a third party, which could be his colleague, a vendor/dealer of the company, or anyone else. In such a case, the taxpayer is not required to concede to such statements made by a third party and may exercise his right to cross-examine the other person to verify his negative comments.
What Happens If One Fails to Attend to Summons?
If someone fails to attend to a summons, they may face legal consequences. A summons is an official notice issued by a court or authority requiring the person to appear in court or respond to a legal matter. Ignoring a summons can result in penalties such as fines, arrest, or even contempt of court charges. If a person doesn’t show up without a valid reason, the court may issue a warrant for their arrest, or they could be declared in default, leading to unfavorable judgments in the case. In some instances, the case may proceed without the person’s presence, which could negatively impact their position. It is essential to take summons seriously and seek legal advice if unable to attend the scheduled appearance.
Checklist for the Validity of Summons Received
- Correct Format: Ensure the summons is issued in the proper legal format, including the court or authority’s details.
- Signature: The summons should be signed by the relevant authority or court official.
- Clear Details: Check that it mentions the specific time, date, and location for the appearance.
- Recipient Information: Verify that the summons is addressed to the correct person.
- Legal Grounds: Ensure that the summons is issued for a valid legal reason or matter.
- Service of Summons: Confirm that the summons was delivered to the correct address and in the correct manner (e.g., personal delivery or registered mail).
- Response Requirement: Look for instructions on how to respond, if applicable.
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2022 Circulars and Instructions on Summons?
In 2022, various circulars and instructions were issued to ensure efficient and fair processing of summons. These circulars emphasized the importance of timely service of summons and proper documentation. Authorities were instructed to ensure that summonses are served by reliable methods, such as personal delivery or registered post, and to maintain transparency in the process. Additionally, circulars stressed the need for clear instructions regarding the consequences of failing to attend so that recipients are well-informed. Courts were urged to offer some flexibility in case of genuine reasons for non-appearance, like illness, and provide an opportunity for rescheduling when required.
I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.
Frequently Asked Questions
- Rights of a Taxpayer When They Receive a Summons Under GSTA taxpayer has the right to know the reason for the summons, access relevant documents, and be informed of the proceedings. They can seek clarification on charges, respond to the summons, and seek legal advice. They also have the right to request reasonable time for compliance.
- Duties of a Taxpayer When Complying with a GST SummonsThe taxpayer must provide accurate and complete information or documents requested by the summons. They must comply within the specified timeline and attend hearings. Failure to comply may result in penalties or other legal consequences. Cooperation and timely submission are key responsibilities.
- Can a Taxpayer Request an Adjournment for Responding to a GST Summons?Yes, a taxpayer can request an adjournment if they need more time to gather information or documents. The request should be made in advance, explaining the reasons. However, it is at the discretion of the GST authority to approve or deny the adjournment request.
- What Documents or Evidence Must a Taxpayer Provide When Responding to a GST Summons?The documents required depend on the specific nature of the summons. Generally, taxpayers must provide invoices, financial records, tax returns, bank statements, or other relevant evidence. It’s essential to submit documents requested by the GST authorities accurately to avoid penalties.
- Are There Penalties for Failing to Comply with a GST Summons?Yes, failing to comply with a GST summons can lead to penalties under the GST Act. Penalties may include fines, confiscation of goods, or even arrest in extreme cases. Non-compliance is viewed seriously and can result in legal consequences for the taxpayer.
- Is Legal Representation Allowed When Appearing in Response to a GST Summons?Yes, a taxpayer is allowed to be represented by a lawyer or authorized representative when appearing in response to a GST summons. Legal representation can assist in navigating the legal complexities of the process and ensure compliance with applicable laws.
- What Are the Steps to Verify the Authenticity of a GST Summons?To verify the authenticity, check the summon’s issuing authority and reference number. Confirm the GSTIN and the officer’s details on the official GST portal or through the local GST office. Ensure the summons is delivered via a recognized channel (physical or electronic) for legitimacy.
- Can a Taxpayer Challenge a GST Summons in Court?Yes, a taxpayer can challenge a GST summons in court if they believe it is unlawful or excessive. The challenge can be made through an appeal or by filing a writ petition in a higher court, which will review the legal validity of the summons.
- How Should a Taxpayer Prepare for a GST Summons Hearing?A taxpayer should review the summons details, gather all relevant documents, and ensure they understand the issue at hand. They should prepare clear responses, consult with legal or tax experts if necessary, and ensure timely compliance with all document submissions before the hearing.
