The Supreme Court has directed the Center and the GST Council to advise the states to implement the electronic (digital) system of Document Identification Number (DIN) in indirect tax administration. The apex court on Wednesday said the system, already implemented in Karnataka and Kerala, is in the larger public interest and will promote good governance. It will bring transparency and accountability to indirect tax administration, which is very important for efficient governance.
A bench of Justices MR Shah and BV Nagarathna made these observations while disposing of a PIL filed by chartered accountant Pradeep Goel. The petitioner's counsel said, by implementing this system, any misuse of pre-dating communication by the departmental officers can be prevented.
Additional Solicitor General (ASG) Balbir Singh, appearing for the Centre, also agreed with the contention, after which the bench said, the Central Government has also implemented the DIN system of the Central Board of Direct Taxes.
The GST Council is empowered to make recommendations to the States on any matter relating to GST. It can also issue advisories to the respective states for the implementation of the DIN system. Doing so would be in the larger public interest and could bring transparency and accountability to indirect tax administration.
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