The GST council has been directed by the Supreme Court has directed to issue advisory to the respective States regarding the implementation of the digital generation of a Document Identification Number (DIN) in the indirect tax administration.
The bench of Justice MR Shah and Justice BV Nagarathna found that the system, would be in the larger public interest and enhance good governance after finding that in Kerala and Karnataka it has worked well.
The court said that the system will bring in transparency and accountability in the indirect tax administration, which is very important.
The court observed this while disposing a Public Interest Litigation filed by Chartered Accountant Pradeep Goyal who was represented by Advocate Charu Mathur, who submitted that implementing this system may prevent any abuse by the Departmental Officers of pre-dating communications and ratifying actions by authorizations.
Additional Solicitor General Balbir Singh , who represented the Union of India, also agreed with this submission.
The court said that it cannot be disputed that implementing the system for electronic (digital) generation of a Document Identification Number (DIN) for all communication sent by the State Tax Officers to taxpayers and other concerned persons would be in the larger public interest and enhance good governance. It will bring in transparency and accountability in the indirect tax administration, which are so vital to efficient governance.Even the Central Government has also taken a decision and as such implemented the DIN system of Central Board of Direct Taxes and on and from 01.10.2019, as every CBDT communication will have to have a Document Identification Number (DIN).
The court also said that the GST Council is empowered to make recommendations to the States on any matter relating to GST.
The court, while disposing of the writ petition, ordered that as we dispose of the present writ petition by directing the Union of India GST Council to issue recommendations to the respective States regarding implementation of the system of electronic (digital) generation of a DIN in the indirect tax administration, which is already being iimplemented by the States of Karnataka and Kerala.
The court further said that the concerned States shall consider to implement the system for electronic (digital)generations a DIN for all communications sent by the State Tax Officers to taxpayers.
The court said this is important for bringing transparency and accountability in the indirect tax administration at the earliest”