The government has proposed a crucial amendment to Section 169 of the Central Goods and Services Tax (CGST) Act, making the service of GST notices and orders to taxpayers mandatory in a more transparent and verifiable manner. The move aims to curb disputes arising from improper or unacknowledged delivery of notices and to strengthen the principles of natural justice under GST administration.
Key Highlights
- Clarity in Communication: The amendment ensures that all GST notices, orders, or communications are properly served through verified electronic means such as registered email, GST portal, or physical delivery with proof of receipt.
- Curbing Misuse: It addresses taxpayer concerns about notices being deemed “served” without actual receipt, a key issue in ongoing GST litigations.
- Enhanced Transparency: The new provision emphasizes accountability, ensuring that both tax officials and taxpayers can track service history electronically.
- Legal Impact: Proper service will now be a prerequisite before initiating recovery or penalty proceedings, thereby reducing arbitrary enforcement actions.
- Alignment with Digital Governance: The change supports the government’s broader push toward technology-driven compliance and fair adjudication.
Who Should Take Action – Specific Advice
Taxpayers and businesses should regularly monitor their registered email addresses and the GST portal to ensure no communication goes unnoticed. Legal and compliance teams must maintain records of all GST-related correspondence for audit and litigation purposes. Tax authorities should also update internal systems to align with the amended procedures and avoid service lapses.
India Advocacy Insight
This amendment marks a long-awaited reform in GST law, reinforcing transparency and procedural fairness. By mandating traceable service of notices, the government strengthens trust in the compliance system and reduces unnecessary litigation. For taxpayers, this ensures due process—where no action can be taken without confirmed, documented communication.
