Thursday, 19 December 2024

DIN not mandatory on GST refund related documents

 This is to update you about a recent decision passed by Delhi High Court in the case of Centrans Logistics Pvt Ltd (W.P.(C) 7983/2023, dated December 09, 2024) wherein it was held that a separate Document Identification Number (‘DIN’) is not required for issuance of communications related to processing of refund claims under the GST laws.

 

Facts

 

·            The Company filed for a refund claim and was issued a Deficiency Memo by the GST authorities without mentioning DIN.

 

·            The Company filed for writ petition claiming refund as well as interest ignoring the deficiency memo issued.

 

High Court Decision

 

·            Processing of refund claims and relevant communications are made electronically through GST portal. GST portal generates various documents, such as notices, orders, acknowledgements, etc. which are communicated to taxpayer and have a system-generated unique identifier in the form of a Reference Number (RFN).

 

·            The intention behind prescribing DIN for communications from CBIC officers is fulfilled where communications are made through GST portal as identity of the tax officer is confirmed and genuineness of the documents can be verified online.

 

·            Therefore, there is no requirement for issuance of a separate DIN for communications related to processing of refund claims under the GST laws. The writ petition was disposed of by directing relevant GST officials to examine pending refund application and dispose of the same accordingly.

 

 | Comments

 

·            Recently, under Income Tax laws, the Hon’ble Supreme Court observed that DIN is merely a procedural requirement absence of which cannot vitiate an otherwise valid document.

 

·            Under GST, all documents are routed through GST portal except in some Detention matters where central officer missed to upload MOVs on portal. Thus, it seems that the CBIC Circular mandating DIN is no longer valid.

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