Tamil Nadu GST Department Releases Guidelines for Adjudication under GST Act [Read Circular]

The Tamil Nadu GST Department recently issued Circular No. 08/2024 on August 29, 2024, providing important guidelines for adjudication proceedings under the Goods and Services Tax ( GST ) including drafting of GST order, notices, personal hearing etc. It explained the qualities and contents needed for the orders, notices and the whole proceedings. The circular highlighted the need for well-drafted GST orders by proper officers, emphasising the importance of clarity, transparency, and adherence to the GST Acts and Rules of 2017. The intent of issuing circular is to improve the quality of GST orders, reduce litigation, and secure the government revenue. Get a Copy of GST Ready Reckoner, Click here According to the circular, a good GST order must possess several key qualities. First and foremost, clarity and conciseness are crucial. Orders should be written in straightforward, unambiguous language, focusing on the core reasoning behind the decision and avoiding unnecessary elaboration. This ensures that taxpayers can easily understand the order and its implications. Logical reasoning is another essential aspect; the order should provide a well-reasoned explanation of the decision, clearly detailing the facts of the case, citing relevant legal provisions, and demonstrating how these were applied to the specific circumstances. Get a Copy of GST Ready Reckoner, Click here The circular also stresses the importance of fairness and impartiality. GST orders must be free from bias and demonstrate a commitment to fairness through a careful evaluation of evidence and strict adherence to legal standards. Additionally it stated that consistency with legal precedents is vital, as it enhances the credibility of the decision and provides clarity to taxpayers, promoting confidence in the GST system. If an order grants any remedies or reliefs, such as refunds or adjustments, these should be clearly specified, with detailed explanations. Ultimately, a well-drafted GST order should aim for a just and equitable resolution of all issues, ensuring that taxpayers' rights are protected and that the order is enforceable. Get a Copy of GST Ready Reckoner, Click here The role of the adjudicating authority, as defined by the Tamil Nadu GST Act of 2017, is to issue a "speaking order" after thoroughly evaluating the case. This process must adhere to the Principles of Natural Justice, which include the rule against bias, the right to a fair hearing, and the requirement for a reasoned decision. These principles ensure that the adjudication process is transparent and just. The circular also mentions what should be included in a show cause notice, which is the starting point of the adjudication process. This notice should provide a brief introduction to the taxable person and their business, specify the period in question, and mention the statutory provisions under which the notice is issued. It should also list the evidence relied upon by the adjudicating authority. It stated that the notice must clearly state the issues at hand, the proposed actions, and the taxpayer’s rights, including the right to a personal hearing. Get a Copy of GST Ready Reckoner, Click here The circular added that before issuing a final order, proper officers are advised to ensure that all aspects of natural justice have been addressed. This includes providing relevant documents to the taxpayer, allowing for cross-examination, and thoroughly analyzing the taxpayer’s objections. The final order should be meticulously drafted, ensuring that all issues are addressed logically and in a manner that is easily understandable. It should also include a clear statement of the tax liability, including any applicable interest and penalties, and inform the taxpayer of their right to appeal, written in the circular. Get a Copy of GST Ready Reckoner, Click here The circular provides a model sequence for drafting GST orders, emphasising the importance of a structured and chronological approach. This includes referencing relevant documents, summarizing the taxpayer’s reply, and providing a detailed discussion of the issues. The order should be comprehensive yet concise, avoiding unnecessary legal jargon and focusing on the facts and evidence of the case. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Tamil Nadu GST Department Releases Guidelines for Adjudication under GST Act [Read Circular]

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