Khushi Bajpai
Published on: 03rd August 2022 at 18:48 IST
The Supreme Court has directed the GST council to issue advisory/instructions/ recommendations to the respective states regarding implementation of the system of electronic (digital) generation of a document identification number (DIN) in the indirect tax administration.
The Bench comprising Justices MR Shah and BV Nagaratha observed that the system, which is already being implemented by the States of Karnataka and Kerala, 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.
The Court observed thus while disposing a Public Interest Litigation (PIL) filed by chartered accountant Pradeep Goyal. Advocate Charu Mathur, who appeared for him, submitted that implementing this system may prevent any abuse by the departmental officers of predating communications and ratifying actions by authorizations subsequently made out in the files.
Additional Solicitor General Balbir Singh, who represented the Union of India, also agreed with this submission.
The Court also noted that GST Council is empowered to make recommendations to the States on any matter relating to GST. Further the Court stated that, “The GST Council can also issue advisories to the respective States for implementation of the DIN system, which shall be in the larger public interest and which may bring in transparency and accountability in the indirect tax administration.”
The Court disposed the PIL application with directing the concerned authorities to issue statutory or recommendations to the respective States regarding implementation of the system of electronic generation of DIN for the smooth administration of indirect tax.