Kerala GST taxpayers get relief from multiple show-cause notices

The Kerala State GST Department has introduced significant relief for taxpayers dealing with show-cause notices across various districts in the state. If a taxpayer receives multiple GST notices on the same issue, even if they pertain to different periods, the hearings for all these notices will now be conducted by a single adjudicating authority rather than multiple authorities.

The Kerala GST department's circular addresses a long-standing challenge faced by them regarding different interpretations by various field officers. Separate show-cause notices were historically issued and adjudicated by different authorities. This fragmented approach led to legal inconsistencies and inefficiencies, as multiple authorities could potentially rule differently on the same issue. To mitigate this, the circular introduces the concept of a common adjudicating authority, ensuring that related cases are consolidated and adjudicated by a single authority. This marks a significant step toward enhancing coherence and uniformity in GST adjudications.

Kunal Savani, partner, Cyril Amarchand Mangaldas explains which taxpayers may benefit from a common adjudicating authority

Taxpayers, who have been issued multiple notices for the same GST issue, albeit for different periods or jurisdictions, stand to benefit the most from this move. The circular specifies that such cases, where notices pertain to a single issue or interconnected issues, will now be consolidated under a common adjudicating authority.

However, not all GST notices qualify for this streamlined approach. Key conditions include the presence of a unified subject matter across the notices and a focus on specific sections of the GST law. Additionally, the adjudicating authority responsible for the notice with the highest monetary value will oversee all related cases. This ensures that the process is limited to relevant cases, targeting taxpayers who would otherwise face fragmented and inconsistent adjudications.

Kamal Aggarwal, senior partner, Singhania & Co. explains how will the common adjudicating authority deal with multiple GST notices

The common adjudicating authority, the Joint Commissioners of Taxpayer Services, will handle multiple GST notices in the following ways:

If multiple taxpayers in the same district are under different authorities, but involved in the same issue, the Joint Commissioner of Taxpayer Services vertical in that district will adjudicate all their notices to ensure uniformity.

If multiple taxpayers are involved in the same issue across the state, the Joint Commissioners of Taxpayer Services will adjudicate all related show-cause notices, regardless of the amount involved.

All notices for interconnected taxpayers, even if their business locations fall under different jurisdictions, would be decided by the joint commissioner of the district having taxpayer with the highest demand.

Additionally, any connected penalty notices issued alongside GST notices will also be adjudicated by the same common authority.

Where the principal place of business of the noticee, having the highest amount of demand of tax or penalty in the same show-cause notice(s), falls in a particular district, then the notices issued to all other interconnected noticees, whose principal place of business may fall under the jurisdiction of multiple adjudicating authorities, shall be adjudicated by the Joint Commissioner of Taxpayer Services of that specific district, said Kerala GST department.

www.business-standard.com, dt. 10-01-2025