SC to Govt: Make New Advisory of DIN Compulsory for GST Officials

The Supreme Court (SC) rendered the Centre and the Goods and Services Tax Council to provide the advisory to states for executing a digital system for all communication sent by GST officers to the assessee.

This decision, if executed would draw clarity and accountability to the indirect tax administration and ensure that the assessee would not be harassed.

The central government in Oct 2019 executed the electronic generation of Document Identification Number (DIN) for all the communication incurred through the income tax officers to the assessee.

DIN comprises a 20-digit identification code that is affixed to every communication sent to the assessee by the government.

Currently, DIN would be essential for every kind of communication with the IT department, be it a notice, a letter, an order, a summon, or any other resemblance. Excluding the same, the document and communication will be treated as invalid.

Supreme court sees that “It cannot be disputed that implementing the system for DIN for all communications sent by the state tax officers to taxpayers and other concerned persons would be in the larger public interest and enhance good governance.”

Also, the top court mentioned that the same would draw clarity and accountability in the indirect tax administration which is much more important for enduring regulation.

Also Read: CA vs Govt: Rectification in DIN System for GST Taxpayers

The court revealed that the Central Board of Direct Taxes (CBDT), the controlling body of the direct taxes would get executed DIN on all communications incurred through the income tax officers in 2019 to ensure effective clarity.

But, in GST, only two states Karnataka and Kerala executed the system “which is laudable and to be appreciated,” it added.

“We impress upon the concerned states to consider implementing the system for generation of a DIN for all communications sent by the state tax officer to taxpayers and other concerned persons. This would bring in transparency and accountability in the indirect tax administration at the earliest,” the Supreme court articulated.

The supreme court might be hearing the PIL which would be furnished by a chartered accountant, Pradeep Goyal, asking for the procedure for executing DIN for all the communication sent through the state tax officers to the assessee.

For executing the system by all states, the appeal seeks the direction of the GST officials to acknowledge and endorse the decision of policy.

Also Read: Experts’ Opinion on Supreme Court’s Judgment on GST Council

It seeks the direction of the central government or central board of indirect taxes and customs (CBIC) to launch a centralized DIN across the country.

“The apex court order directing the council to issue instructions to other states to implement DIN will be much appreciated by the industry at large. If successfully implemented, it will go a long way in facilitating transparency and ease of doing business,” a tax expert specified.

A bench comprising of justices MR Shah and BV Nagarathna secured, in July provided the notices to the ministry of finance, CBIC, GST Council, and others asking for answers on their appeal.