2022 (8) TMI 216 - SC - GST

Document Identification Number (DIN) - Seeking Direction to take all necessary steps to implement a system for electronic (digital) generation of a DIN for all communications sent by the state tax officers to taxpayers and other concerned persons - direction to the GST Council to consider and take a policy decision in respect of implementation of DIN system by all the states - direction to the Central Government/CBIC to introduce centralised DIN for the entire country - HELD THAT - It cannot be disputed that implementing the system for electronic (digital) generation of a Document Identification Number (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. It will bring in transparency and accountability in the indirect tax administration, which are so vital to efficient governance. In view of the implementation of the GST and as per Article 279A of the Constitution of India, the GST Council is empowered to make recommendations to the States on any matter relating to GST. 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 present writ petition is disposed off by directing the Union of India / GST Council to issue advisory / instructions / 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 implemented by the States of Karnataka and Kerala. Petition disposed off.

Summary

Issues:
Implementation of electronic Document Identification Number (DIN) system for tax communications, GST Council's role in recommending DIN system implementation by states.

Analysis:
The petitioner, a Chartered Accountant, filed a Writ Petition under Article 32 seeking the implementation of an electronic DIN system for tax communications to enhance transparency and accountability in indirect tax administration. The petitioner urged the GST Council to consider and decide on implementing the DIN system across all states. The petitioner highlighted the importance of preventing abuse by Departmental Officers through pre-dating communications and ratifying actions. Reference was made to the Prime Minister's directive to ensure honest taxpayers are not harassed, leading to the Central Government's decision to implement the DIN system for CBDT communications.

The respondent, representing the Union of India, acknowledged the benefits of implementing an electronic DIN system for tax communications to enhance transparency and accountability. It was noted that the Central Government had already implemented the DIN system for CBDT communications. However, the responsibility for implementing the DIN system for state tax communications lies with the respective states. The respondent highlighted that the GST Council has the authority to recommend and advise states on matters related to GST, including the implementation of the DIN system.

The Supreme Court recognized the public interest and governance benefits of implementing the electronic DIN system for tax communications. While appreciating the efforts of Karnataka and Kerala for already implementing the system, the Court emphasized the importance of extending this practice nationwide. The Court directed the Union of India and the GST Council to issue advisories to states for implementing the electronic DIN system, emphasizing transparency and accountability in indirect tax administration. The concerned states were urged to consider implementing the DIN system promptly to enhance governance. The Court disposed of the writ petition, instructing the Registry to send a copy of the order to the Chief Secretary of all respondent states for necessary action.