Why Madras High Courts’s Advocacy for Regional Language GST Notifications is Important
Many traders face difficulties due to language barriers in understanding official communications, which ultimately leads to non-compliance, which in turn attracts harsh punishments like cancellation of GST registration
The recent judgment by the Madras High Court, labeling the cancellation of GST registration as “capital punishment” for small traders, has drawn attention to critical gaps in the GST compliance system. The Court has opinionated that the Goods and Services Tax ( GST ) system should be made more accessible by suggesting that the Central Board of Indirect Taxes and Customs ( CBIC )...
The recent judgment by the Madras High Court, labeling the cancellation of GST registration as “capital punishment” for small traders, has drawn attention to critical gaps in the GST compliance system. The Court has opinionated that the Goods and Services Tax ( GST ) system should be made more accessible by suggesting that the Central Board of Indirect Taxes and Customs ( CBIC ) should issue notifications, reminders, and alerts in regional languages as well, not just in Hindi and English.
The court, in its judgment, ordered the Goods and Services Tax ( GST ) department to simplify rules and send notices via SMS and in regional languages to better support small-scale entrepreneurs.
This advocacy is extremely notable, as many traders and small business owners, particularly in rural and non-metropolitan areas, face difficulties due to language barriers in understanding official communications, which ultimately leads to non-compliance, which in turn attracts harsh punishments like cancellation of GST registration. In this article, we will discuss why this advocacy is pivotal and important in making the GST system more personable to ordinary citizens.
Current Communication Methods
At present, most GST-related communications from the CBIC are issued in English and Hindi. These include notifications about compliance deadlines, tax filings, and penalties. However, India being home to a linguistically diverse population should be more accommodating of the large portion of the people who may not be well-versed in either language. Taking this issue into concern, the court recommended a shift toward using regional languages to better serve the needs of traders, especially those in rural and semi-urban areas.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
CBIC has, in the past, issued some notifications in bilingual formats, but expanding this to other languages like Tamil, Bengali, Marathi, Telugu, and others could majorly ease the compliance burden on traders unfamiliar with English or Hindi.
Why Using Regional Languages is Important
According to census data of 2011, only around 10% of India’s population speaks English, while Hindi is spoken by about 43.63%. This leaves out a huge portion of the population that primarily communicates in their regional language, making tax communications hard to understand. This barrier could lead to non-compliance, penalties, and legal issues for small traders who do not have easy access to translation services.
When official notices are easily understandable, it cultivates greater compliance. In many cases, the failure to file timely returns or pay taxes is not due to willful negligence but simply because the recipient did not fully understand the communication. Reminders in the recipient’s native language would make it easier for them to follow through with GST regulations without confusion.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Another advantage of regional notifications is that it reduces dependence on middlemen, upon whom many small businesses rely on tax consultants or intermediaries who charge for translating official notices. By issuing alerts directly in regional languages, businesses can save on these costs, leading to more direct engagement with tax authorities. This will also cut-short errors that occur due to misinterpretation by intermediaries, which will ultimately lead to better compliance.
The issuance of regional language notifications will also help in supporting small and rural traders. As the majority of India’s small and medium enterprises (SMEs) and individual traders are based in rural and semi-urban areas, where literacy levels and access to resources are lower, communicating with them in a language they understand directly is not just about convenience, but about equity. It ensures that everyone has the same opportunity to be aware of and comply with tax laws.
Efforts by CBIC Toward Inclusivity
While CBIC has started exploring methods to make GST compliance easier, including developing user-friendly tools like the GST portal and e-invoicing solutions, there is still room for improvement in terms of linguistic accessibility. The portal itself offers options in Hindi and English, but there have been suggestions from various quarters to offer multilingual support, especially for critical updates.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The Madras High Court’s suggestion of using SMS alerts in regional languages can be a great addition to CBIC's efforts. Mobile alerts are definitely a powerful tool in reaching even the remotest areas of India, where access to the internet and digital devices may be limited. In combination with regional-language emails, this would make the tax system much more inclusive
But, Is Implementing Multilingual Communication Really Easy?
As with every task, the practical side of this suggestion is in fact, a mean feat to employ efficiently. There are a plethora of challenges to tackle in order to efficiently implement a multilingual GST notification system.
First thing to consider is the logistics of multilingual translation. India has 22 officially recognized languages, and creating a robust system where every official communication is translated accurately and promptly into each of these languages will be a challenge. This requires investment in technology and human resources to ensure translations are precise and contextually appropriate.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
Another concern is consistency across different platforms. It's not just about sending SMS or email reminders but ensuring that the entire GST filing process, including the interface on the CBIC portal, is available in multiple languages. This would require coordinated efforts between different government departments and technological upgrades.
Furthermore, the training and capacity building should be prioritized. For CBIC employees and tax officers, ensuring that they can provide support in regional languages will require additional training and resources. This will also necessitate changes in the way taxpayer grievances are handled, with a multilingual customer support system in place.
The Madras High Court’s recommendation to CBIC to use regional languages in communicating with traders is a notable step towards inclusivity in India’s tax system. This notion, if implemented effectively, can reduce compliance issues, empower small traders, and cultivate a sense of ownership over tax obligations. While there are challenges to implementing such a system, the long-term benefits in terms of higher compliance and reduced penalties make it a step worth taking.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
