Haryana GST Intelligence Unit: New Amendments for Effective Tax Evasion Investigation

Introduction

On March 15, 2024, the Haryana GST Department issued a significant order establishing the ‘Haryana State GST Intelligence Unit (HGST-IU)’. This framework introduces crucial amendments to the processes for investigating Goods and Services Tax (GST) evasion within the state.

Detailed Analysis

1. Background and Previous Order

The HGST-IU was originally instituted through order no. 02/2021/GST-II on March 22, 2021, with a primary focus on investigating GST evasion cases.

2. Modifications in the Current Order

The latest directive from Ashok Kumar Meena, Commissioner of State Tax, modifies the initial order with the following changes:

Intelligence Officer(s) will be assigned to each Joint Commissioner of State Tax (Range) to aid in the identification, planning, and execution of searches and inspections related to tax evasion.

3. Selection and Jurisdiction

Intelligence Officers will be selected by a committee comprising the relevant Joint Commissioner of State Tax (Range) as Chairman, along with other officials.
Each officer's tenure will last for a maximum of one year and will cover jurisdiction as Proper Officers throughout the state of Haryana.

4. Operational Structure

The order specifies the allocation of intelligence teams across different ranges to ensure effective operations:

Gurugram Range: 6 teams
Faridabad Range: 4 teams
Ambala Range: 2 teams
Rohtak Range: 2 teams
Hisar Range: 2 teams

Joint Commissioners maintain the discretion to assign Intelligence Officers to ward-related tasks as required.

5. Accountability and Transition

Joint Commissioner of State Tax (Range) can remove Intelligence Officers prior to the conclusion of their one-year term, contingent upon the approval from the Excise and Taxation Commissioner-cum-Commissioner of State Tax, Haryana.
Current officers within the HGST-IU will transition to proper officer positions in their respective districts after the appointment of new Intelligence Officers.

New Amendments and Nuances (Post-March 2024)

Enhanced Oversight

HGST-IU officers are now required to coordinate with jurisdictional Deputy Commissioners for high-value cases, thus aligning with statewide compliance strategies.

Alignment with Amnesty Schemes

Cases managed by HGST-IU must comply with updated procedures related to the Amnesty Scheme under Section 128A of the HGST Act, as clarified in CBIC Circular No. 248/05/2025-GST.

Biometric Authentication

Applicants for GST registration in Haryana are subjected to Aadhaar-based biometric verification, which influences HGST-IU’s investigative procedures.

Conclusion

The recent order from the Haryana GST Department represents a substantial restructuring of the investigative approach to combat GST evasion in the state. By delineating roles, responsibilities, and operational procedures, the order aims to enhance efficiency, accountability, and effectiveness in addressing tax evasion. Stakeholders are encouraged to familiarize themselves with these directives to facilitate smooth implementation and adherence to tax regulations throughout Haryana.