SC directs the Union of India /GST Council to issue advisory to states for implementation of the DIN system

A Chartered Accountant filed a Public Interest Ligation, and has prayed for an appropriate writ, order, or direction to the respondents – respective States and the GST Council to take all necessary steps to implement a 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 to promote transparency and accountability in the indirect tax administration. It is also prayed to direct the GST Council to consider and take a policy decision in respect of the implementation of the DIN system by all the States, as it may prevent any abuse by the Departmental Officers of pre-dating communications and ratifying actions by authorizations subsequently made out in the files. The same has till date only been implemented only by two States, i.e., the States of Karnataka and Kerala.

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 transparency and accountability to the indirect tax administration. Therefore, the Apex Court disposed of the present writ petition by directing the Union of India / GST Council to issue advisory / instructions/recommendations to the respective States regarding the 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. The Court stressed upon the concerned States to consider implementing the system for electronic (digital) generation of a DIN for all communications sent by the State Tax Officers to taxpayers and other concerned persons so as to bring transparency and accountability in the indirect tax administration at the earliest and disposed of the PIL.

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