A new IT Grievance Redressal Mechanism to address the grievances of GST taxpayers

Setting up of an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal-reg.

Circular No. 39/13/2018-GST

F. No. 267/7/2018-CX.8
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

New Delhi, dated the 3rd April, 2018

To
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/Commissioner of Central Tax (All),
The Principal Director Generals/ Director Generals (All).
Sub: Setting up of an IT Grievance Redressal Mechanism to address the grievances oftaxpayers due to technical glitches on GST Portal-reg.
Madam/Sir,
It has been decided to put in place an IT-Grievance Redressal Mechanism to address thedifficulties faced by a section of taxpayers owing to technical glitches on the GST portal andthe relief that needs to be given to them. The relief could be in the nature of allowing filing ofany Form or Return prescribed in law or amending any Form or Return already filed. The
details of the said grievance redressal mechanism are provided below:
2. Introduction

Where an IT related glitch has been identified as the reason for failure of a class of taxpayerin filing of a return or a form within the time limit prescribed in the law and there arecollateral evidences available to establish that the taxpayer has made bonafide attempt tocomply with the process of filing of form or return, GST Council has delegated powers to theIT Grievance Redressal Committee to approve and recommend to the GSTN the steps to betaken to redress the grievance and the procedure to be followed for implementation of thedecision.

3. Scope
Problems which are proposed to be addressed through this mechanism would essentially bethose which relate to Common Portal (GST Portal) and affect a large section of taxpayers.
Where the problem relates to individual taxpayer, due to localized issues such as nonavailabilityof internet connectivity or failure of power supply, this mechanism shall not beavailable.
4. IT-Grievance Redressal Committee
Any issue which needs to be addressed through this mechanism shall be identified by GSTN and the method of resolution approved by the GST Implementation Committee (GIC) whichshall act as the IT Grievance Redressal Committee. In GIC meetings convened to address ITissues or IT glitches, the CEO, GSTN and the DG (Systems), CBEC shall participate in thesemeetings as special invitees.
5. Nodal officers and identification of issues

5.1 GSTN, Central and State government would appoint nodal officers in requisite number toaddress the problem a taxpayer faces due to glitches, if any, in the Common Portal. Thiswould be publicized adequately.

5.2 Taxpayers shall make an application to the field officers or the nodal officers where therewas a demonstrable glitch on the Common Portal in relation to an identified issue, due towhich the due process as envisaged in law could not be completed on the Common Portal.

5.3 Such an application shall enclose evidences as may be needed for an identified issue toestablish bonafide attempt on the part of the taxpayer to comply with the due process of law.

5.4 These applications shall be collated by the nodal officer and forwarded to GSTN whowould on receipt of application examine the same. GSTN shall after verifying its electronicrecords and the applications received, identify the issue involved where a large section of taxpayers are affected. GSTN shall forward the same to the IT Grievance Redressal Committeewith suggested solutions for resolution of the problem.

6. Suggested solutions

6.1 GST Council Secretariat shall obtain inputs of the Law Committee, where necessary, onthe proposal of the GSTN and call meeting of GIC to examine the proposal and take decisionthereon.

6.2 The committee shall examine and approve the suggested solution with such modificationsas may be necessary.

6.3 IT-Grievance Redressal Committee may give directions as necessary to GSTN and fieldformations of the tax administrations for implementation of the decision.

7. Legal issues

7.1 Where an IT related glitch has been identified as the reason for failure of a taxpayer in filing of a return or form prescribed in the law, the consequential fine and penalty would alsobe required to be waived. GST Council has delegated the power to the IT GrievanceRedressal Committee to recommend waiver of fine or penalty, in case of an emergency, tothe Government in terms of section 128 of the CGST Act, 2017 under such mitigatingcircumstances as are identified by the committee. All such notifications waiving fine orpenalty shall be placed before GST Council.

7.2 Where adequate time is available, the issue of waiver of fee and penalty shall be placedbefore the GST Council with recommendation of the IT-Grievance Redressal Committee.

8. Resolution of stuck TRAN-1s and filing of GSTR-3B

8.1 A large number of taxpayers could not complete the process of TRAN-1 filing either atthe stage of original or revised filing as they could not digitally authenticate the TRAN-1’sdue to IT related glitches. As a result, a large number of such TRAN-1’s are stuck in thesystem. GSTN shall identify such taxpayers who could not file TRAN-1 on the basis ofelectronic audit trail. It has been decided that all such taxpayers, who tried but were not ableto complete TRAN-1 procedure (original or revised) of filing them on or before 27.12.2017due to IT-glitch, shall be provided the facility to complete TRAN-1 filing. It is clarified that the last date for filing of TRAN 1 is not being extended in general and only these identifiedtaxpayers shall be allowed to complete the process of filing TRAN-1.

8.2 The taxpayer shall not be allowed to amend the amount of credit in TRAN-1 during thisprocess vis–vis the amount of credit which was recorded by the taxpayer in the TRAN-1,which could not be filed. If needed, GSTN may request field formations of Centre and State to collect additional document/ data etc. or verify the same to identify taxpayers who shouldbe allowed this procedure.

8.3 GSTN shall communicate directly with the taxpayers in this regard and submit a finalreport to GIC about the number of TRAN-1s filed and submitted through this process.

8.4 The taxpayers shall complete the process of filing of TRAN 1 stuck due to IT glitches, asdiscussed above, by 30th April 2018 and the process of completing filing of GSTR 3B whichcould not be filed for such TRAN 1 shall be completed by 31st May 2018.

9. The decisions of the Honble High Courts of Allahabad, Bombay etc., where no casespecific decision has been taken, may be implemented in-line with the procedure prescribedabove, subject to fulfillment of the conditions prescribed therein. Where these conditions arenot satisfied, Honble Courts may be suitably informed and if needed review or appeal may be filed.
10. Trade may be suitably informed and difficulty if any in implementation of the circularmay be brought to the notice of the Board.

(ROHAN)
(Deputy Commissioner)

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