Summary
A chartered accountant filed a public interest petition under Article 32 seeking a direction that all States implement electronic generation of a Document Identification Number (DIN) for communications sent by State tax officers to taxpayers, as the CBDT has done since 01.10.2019 and as only Karnataka and Kerala had done for GST. The Union agreed that a DIN system brings transparency and accountability but said implementation was for the States. The Supreme Court held that a DIN system is in the larger public interest and enhances good governance, and that the GST Council, empowered under Article 279A to make recommendations to the States on GST matters, can issue advisories for it. It directed the Union and the GST Council to issue advisories or recommendations to the States and urged the States to implement the system at the earliest.
Issues
- Whether the Court should direct the States, the Central Government and the GST Council to implement a system for electronic generation of a Document Identification Number for communications by State tax officers.
Provisions considered
- Article 279A, Constitution of IndiaThe GST Council may make recommendations to the States on any GST matter and can issue advisories for implementing the DIN system; the Court directed it to do so. (¶¶ 2.2, 3, 7)
- Article 32, Constitution of IndiaThe public interest petition was entertained and disposed of with directions to the Union and GST Council rather than a mandamus compelling every State. (¶¶ 1, 5, 7)
Held
- Electronic generation of a DIN for all communications by State tax officers is in the larger public interest, enhances good governance, and brings transparency and accountability to indirect tax administration; the Centre adopted it for CBDT communications from 01.10.2019, and Karnataka and Kerala's implementation is laudable. (¶ 6)
- Under Article 279A the GST Council can recommend and issue advisories to the States for a DIN system. The Union and the GST Council are directed to issue such advisories, instructions or recommendations, and the States are impressed upon to implement the system at the earliest. (¶ 7)
Result
Writ petition disposed of with a direction to the Union of India / GST Council to issue advisories, instructions or recommendations to the States on implementing electronic DIN generation; the Registry to send the order to the Chief Secretaries of all respondent States.