CA vs Govt: Rectification in DIN System for GST Taxpayers

The Supreme Court heard a Public Interest Litigation (PIL) to take action to execute a system for electronic (digital) generation of a Document Identification Number for all communications sent by state tax officers to taxpayers.

The applicant, CA Pradeep Goyal through Adv Charu Mathur approached the Supreme Court seeks precise directions towards the generation of the document identification number (DIN) to all the communications circulated via state GST officers.

The same submitted that according to the details available in the public domain only two states that is Karnataka and Kerala have a proper system of DIN.

“The Central Board of Indirect Taxes and Customs (CBIC) vide Circular No. 122/41/2019 dated 05.11.2019 has executed a system for the electronic (digital) generation of a Document Identification Number (DIN) towards all the communications sent via its offices to the assessee” along with the other related individuals.

The same is being performed under the objectives of the government for transparency and accountability in indirect tax administration through the overall use of information technology. To start with the Government created quoting of DIN mandatory on all search authorization, summons, arrest memo, inspection notices, and additional letters issued during the course of inquiry.

In continuation of the same, the Board vides Circular No. 128/47/2019 on 23.12.2019 pointed that electronic generation and quoting of GST Document Identification Number (DIN) would get done for communications (e-mails) sent to the assessee and other related persons via the office of the CBIC within the country.

The applicant submitted RTI application CPIO, GST official asks for the details for any directions by GST officials concerned to the executions of the system of DIN generation on the communications circulated via state tax offices,

if the problems are concerned with the generation of DIN via state tax offices discussed in any former GST official meet or any proposal to execute the same system was forced in any meeting. GST council answered that they do not have any problem with the said recommendations to the states and the same problem was not being addressed in any GST council meetings.

The applicant hence seeks Supreme court asking that similar to CGST departments the SGST dept would secure the investigation wings, while they do not need to quote DIN on any communication via dept.

For maintaining the proper audit trail and to furnish clarity in all the communications, there would a requirement for the states to secure the compulsory generation of the document identification number (DIN) for the communications by providing the circular beneath the concerned SGST provision.

When the GST tagline would be one nation one tax then the DIN issuance would be mandatory for CGST as well as SGST departments.