GST Update No 164 on technical glitches on common portal

GST Update No 164 on technical glitches on common portal India’s largest tax reform, the Goods and Service tax, was launched on 1st July 2017, it is yet to be fully put in place, all thanks to patchy technical implementation. More than 4 years down the line and after multiple policy updates, it still seems that not everything unfolded smoothly and as planned. Consequently, the Government scrambles to fix these glitches, the GST system also has failed to support last minute filing of returns, resulting in extension of deadlines continuously. Similarly, the common portal fails to display various show cause notices and correspondences with the revenue department. One such issue on the same line was raised in front of Hon’ble Madras High Court in the case of Pushpam Reality V/s State Tax Officer. The decision imparted is the subject matter of our present update. The petitioner filed a Writ Petition against assessment order seeking relief of Writ of Certiorari. The counsel of petitioner submitted that the impugned assessment orders were passed without proper show cause notice or giving adequate opportunity of hearing. Therefore, there was violation of principle of natural justice. The departmental representative argued that the notices were uploaded on the portal of the State Government and auto populated on the portal maintained by Central Government. Therefore, it was contended that submissions of petitioner are not tenable. Further, it was submitted that once notices are uploaded, information is available on the dashboard of the assessees. Moreover, departmental representative referred Section 169 of CGST Act, 2017 wherein it was held that notice served in any other manner is also sufficient. Reliance was placed on the decision of Kerala High Court in the case of Softouch Health Care Private Ltd. Vs. The State Tax Officer, 1st Circle, Department of State GST and Others. The Court analyzed Section 169 of CGST Act, 2017 and held that said section was sufficiently and duly complied with. It was stated that GST was implemented w.e.f. 01.07.2017. Since then, the portal is facing numerous problems on several occasions and accordingly, steps were also taken to fix these technical glitches. Till date the problems are arising on account of technical glitches out of inter communication between SGST and CGST. In such a scenario, it was finally ruled out that until and unless all the problems are resolved out, the revenue authorities may serve the notice of assessment and communications both through registered/ speed post along with acknowledgment and through web portal. Once all the problems are resolved, the practice of sending physical copy can be discontinued. The petitioner was directed to file a reply of show cause notice. And the respondents were directed to pass speaking order on merits within a period of 45 days from date of receipt of copy of this order. The above judgment is a favorable decision for the business community. With the advent of technology driven society, the business houses are constantly facing various challenges ranging from filing of returns to alignment of books and records to filing of replies of notices due to technical glitches on the portal. There had been plethora of judgments in the Court of Law in this regard. To illustrate in the case of M/s Bodal Chemicals Ltd. Versus Union Of India, Gujarat High Court held that department should allow filing of GSTR-6 and cannot raise hands in despair due to technical problems. The need of the hour is that the Government should fix these problems at the earliest possible resulting into a big boost of struggling business houses. Even the business community is also not so computer friendly. Moreover, the working of portal is also not known to taxpayers. We have come across a case where a big business house having good technical staff was not able to know that show cause notice was issued to them. This is due to the fac that notice was not uploaded in the section “Services”- “User Services”-“View Notices and Orders” but under “Services”- “User Services”- “View Additional Notices/Orders”. Now, taxpayer said that he was not knowing that show cause notice can either be uploaded in either of these two places in portal. He came to know about the same only after call from the department. Department was helpful in this instant case but it may proceed without communicating with taxpayer. Moreover, the small taxpayer do not see the e-mail id given in registration. Hence, Section 169 should be amended and physical copy of show cause notice should be made mandatory or at least there should be communication by way of mobile call should be made mandatory.

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GST Update No 164 on technical glitches on common portal

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