2020 (2) TMI 170 - HC - GST

Filing of annual returns - uploading of annual returns in GSTR 9C Form, which are filed by the assessees for the financial year 2017-18 - apparent technical flaws, glitches and limitations in the online portal system evolved by GSTN - extension of date of filing of returns - HELD THAT - Infosys Limited and Tech Mahindra Limited have been entrusted the task of evolving and maintaining the GSTN Network for IT support. With a view to better appreciate the intricacies, and to ensure that the grievances raised by the taxpayers whose interest the petitioner association represents and our orders are understood and implemented in true perspective, we consider it necessary to have Infosys Limited and Tech Mahindra Limited present before us, to receive their assistance, as and when required. Court Notices to be issued to Infosys Limited and Tech Mahindra Limited in the aforesaid context - Let court notice issue to them returnable on 20.02.2020.

Summary

Issues:
1. Publication of contact details of Nodal Officers on GST websites.
2. Extension of deadline for filing annual returns for financial years 2017-18 and 2018-19.
3. Operationalization of Forms GSTR 9, GSTR 9A, and GSTR 9C.
4. Technical flaws and limitations in the GSTN online portal system.
5. Involvement of Infosys Limited and Tech Mahindra Limited in maintaining the GSTN Network.

Analysis:

1. Publication of Nodal Officers' Contact Details:
The petitioner raised concerns about the visibility of contact details of Nodal Officers on GST websites. The Court directed that the information should be prominently displayed on the Home Page with an appropriate link to ensure easy access for taxpayers.

2. Extension of Deadline for Filing Annual Returns:
Regarding the deadline extension for filing annual returns for the financial year 2017-18, the petitioner highlighted technical issues faced by assessees in uploading returns. The Court noted the problems faced and directed the respondents to ensure successful uploading of returns without penalizing taxpayers for system shortcomings.

3. Operationalization of Forms GSTR 9, GSTR 9A, and GSTR 9C:
The Court criticized the delay in making Forms GSTR 9, GSTR 9A, and GSTR 9C available for the financial year 2018-19. It emphasized the need for timely operationalization of these forms to enable prompt filing by assessees, expressing dissatisfaction with the explanation provided by the respondents for the delay.

4. Technical Flaws in GSTN Online Portal System:
Numerous technical flaws and limitations in the GSTN online portal system were highlighted, leading to grievances for taxpayers. The Court acknowledged the issues and decided to involve Infosys Limited and Tech Mahindra Limited, the entities responsible for maintaining the GSTN Network, to provide assistance and ensure proper implementation of orders.

5. Involvement of Infosys Limited and Tech Mahindra Limited:
To address technical complexities and ensure effective resolution of taxpayer grievances, the Court directed the issuance of a court notice to Infosys Limited and Tech Mahindra Limited. The notice was to be served through counsel for the GSTN, with a returnable date set for further proceedings to seek their assistance in understanding and implementing necessary improvements.

This comprehensive analysis of the judgment highlights the key issues addressed by the Court and the directives issued to resolve the concerns raised by the petitioner regarding the GST system's functioning and taxpayer compliance processes.