Explanation:

The correct answer is option 'B' - 2 only.

Statement 1: It functions under the Ministry of Commerce and Industry.
This statement is incorrect. The Directorate General of GST Intelligence (DGGI) does not function under the Ministry of Commerce and Industry. Instead, it functions under the Central Board of Indirect Taxes and Customs (CBIC), which is a part of the Department of Revenue under the Ministry of Finance.

Statement 2: It has the power to conduct investigations into suspected cases of GST evasion.
This statement is correct. The DGGI is responsible for investigating cases related to the evasion of Goods and Services Tax (GST). It has the power to conduct inquiries, searches, seizures, and arrests to ensure compliance with GST laws. It acts as the enforcement agency for GST and works closely with the Central GST and State GST authorities to detect and prevent tax evasion.

Additional Information:

The Directorate General of GST Intelligence (DGGI) was established in 2017 after the implementation of GST in India. It is the apex intelligence and investigative agency for GST-related matters. Some key functions of the DGGI include:

1. Intelligence gathering: The DGGI collects and analyzes intelligence related to suspected cases of GST evasion. It uses various sources of information, including data analytics, to identify potential tax evaders.

2. Investigation: The DGGI conducts investigations into suspected cases of tax evasion. It has the power to summon persons, examine them under oath, and collect evidence to establish the commission of an offense.

3. Enforcement: The DGGI takes necessary enforcement actions, such as searches, seizures, arrests, and prosecutions, to ensure compliance with GST laws. It works in close coordination with other tax authorities, such as the Central GST and State GST authorities, to ensure effective enforcement.

4. Capacity building: The DGGI also focuses on capacity building and training of its officers to enhance their skills in intelligence gathering, investigation techniques, and legal procedures. This helps in improving the effectiveness of the DGGI in tackling GST evasion.

In conclusion, the Directorate General of GST Intelligence (DGGI) is an important agency responsible for investigating cases of GST evasion in India. It functions under the Central Board of Indirect Taxes and Customs (CBIC) and has the power to conduct investigations, searches, seizures, and arrests to ensure compliance with GST laws.