CBIC Directs Tax Officials in India to Upload GST Tax Notice Summaries Online

Posted by Written by Melissa Cyrill Reading Time: 3 minutes

CBIC directs tax officials to upload digital summaries of GST notices per provisions of the CGST Act and supporting rules. Proper officers are mandated to issue notices for the demand and recovery of taxes, interest, penalties, or fines. Businesses can expect a more transparent, streamlined, and accountable tax compliance environment with an increased focus on electronic communication and record-keeping.

The new directive aims to boost tax transparency

The detailed internal order by the Central Board of Indirect Taxes and Customs (CBIC), contained in Instruction No. 04/2023-GST, dated November 23, 2023, requires India’s tax officials to digitally upload notices and orders under the Central Goods and Service Tax Act, 2017 (CGST Act). This is intended to streamline processes, enhance transparency, and ensure uniform compliance across the board.

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The internal directive refers to specific sections of the CGST Act, namely sections 52, 73, 74, 122, 123, 124, 125, 127, 129, and 130. According to these sections, the designated proper officer is mandated to issue a notice to an individual for the demand and recovery of any outstanding tax amount, whether unpaid or short-paid, the amount of input tax credit erroneously availed, or the amount of refund mistakenly made. This notice may also include provisions for the recovery of interest and/or the imposition of penalties or fines on the concerned party.

Attention is also drawn to sub-rule (1) of rule 142 of the Central Goods and Service Tax Rules, 2017 (hereinafter referred to as the CGST Rules). In accordance with this rule, in addition to the notices issued under sections 52, 73, 74, 122, 123, 124, 125, 127, 129, or 130 of the CGST Act, the proper officer is required to electronically serve a summary of such notices on the portal using FORM GST DRC-01.

Furthermore, it should be noted that, in accordance with sub-rule (5) of rule 142 of the CGST Rules, whenever a proper officer issues an order under section 52, section 62, section 63, section 64, section 73, section 74, section 75, section 76, section 122, section 123, section 124, section 125, section 127, section 129, or section 130 of the CGST Act, a summary of said order must be electronically uploaded onto the portal by the proper officer using FORM GST DRC-07. This summary should explicitly detail the amount of tax, interest, and penalty, as applicable, payable by the individual concerned.

Background: Challenges identified in the field

The directive has highlighted a concerning trend where certain field formations continue to manually serve notices and orders, neglecting the stipulated electronic submission requirements. This not only constitutes a violation of the explicit provisions of CGST Rules but also poses challenges in tracking proceedings efficiently.

Failure to adhere to these electronic submission requirements has the potential to adversely impact record-keeping under the Goods and Service Tax (GST) framework. The repercussions extend to subsequent proceedings such as appeals and recoveries on the portal, highlighting the critical importance of strict adherence to the stipulated rules.

CBIC’s directives

In response to these identified challenges, the CBIC has issued a clear directive to all proper officers. The directive includes two key points:

  • Proper officers must ensure the electronic service of the summary of notices issued under sections 52, 73, 74, 122, 123, 124, 125, 127, 129, and 130 of the CGST Act on the portal in FORM GST DRC-01.
  • Proper officers must upload the summary of orders issued under various sections of the CGST Act electronically on the portal in FORM GST DRC-07, including details of payable tax, interest, and penalties.

Supervision and compliance

To reinforce the importance of these directives, the CBIC calls upon Principal Chief Commissioners, Chief Commissioners of CGST Zones, and the Principal Director General of the Directorate General of Goods and Services Tax Intelligence (DGGI) to closely supervise officers within their purview. This supervision is crucial to ensure strict compliance with Rule 142 of CGST Rules and maintain the integrity of GST proceedings.

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