'We Can't Run GST Administration' : Supreme Court Dismisses Plea For Rating Mechanism For GST Payers

The bench led by CJI DY Chandrachud comprising Justices JB Pardiwala and Manoj Misra refused to entertain the PIL since such a relief would fall outside the scope of the Writ Jurisdiction.

The CJI, while dismissing the PIL, opined, “That's a matter for the Parliament, let's not use PIL jurisdictions for this. PIL is for crucial issues of human rights…you can't have a rating mechanism under PIL , you see a good issue in the newspapers and say chalo PIL!”

“That's for the GST administration right, we don't want to run the GST administration sitting here.”

He stressed that it was for the state agencies to examine the effectiveness and applicability of rating mechanisms. 

“These are relatively evolving issues. These are matters of fiscal importance, what is the impact of a rating mechanism, how should it be accuratete? These are matters of public administration”

The bench also noted that while Government of Kerala was preparing to implement a similar policy of 'Tax Payer Card', it was for the Central Agencies to understand its practicality and not the Courts. 

The petitioner who is a Chartered Accountant in his plea contended that S.149 of CGST Act provides for a rating system for keeping track of taxpayers. However there exists a lacuna on appropriate directions for its implementation.

Notably S.149 states : Goods and services tax compliance rating

(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act.

(2)The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed.

(3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.

The following reliefs were sought by the Petitioner :

Issue a writ of mandamus or any other appropriate writ, order or direction to the Union Govt. / GST Council to take all necessary steps to implement frame GST rules for rating system and implement a centralized rating system (GST being one nation one tax) through Goods and Services Tax Network which is central nodal agency for implementations of GST laws;

b. Issue a writ of mandamus or any other appropriate writ, order or direction to the States not to implement their own rating system and to take instructions from GST Council regarding the same;

с. Issue a writ of mandamus or any other appropriate writ, order or direction to the GST council to make recommendations to the union and states for following centralized rating system instead of making their own rating system and

d.pass such further order(s) as may be deemed fit and proper in facts and circumstances of the present case, in the interest of justice.

The PIL was filed with the assistance of AOR Charu Mathur.

Case details : PRADEEP GOYAL Versus UNION OF INDIA AND ORS. W.P.(C) No. 533/2024