Kerala GST Department Updates Adjudication Process for SCNs
The Kerala GST Department has announced a streamlined adjudication process for show cause notices (SCNs) under the Kerala SGST Act, 2017. This update, detailed in Circular No. 21/2024-Kerala SGST dated November 18, 2024, aims to ensure consistency, improve efficiency, and reduce legal disputes.
Key Changes in the Adjudication Process
Designation of Common Adjudicating Authorities
The department now empowers Joint Commissioners of Taxpayer Services to serve as common adjudicating authorities for SCNs. They will oversee cases involving:
- Taxpayers operating across multiple jurisdictions.
- Jurisdictions facing similar issues to avoid overlapping adjudications.
Jurisdiction Determined by Highest Demand
In situations where SCNs involve interconnected taxpayers, the department establishes jurisdiction based on the notice with the highest demand. Consequently, the Joint Commissioner of that district will adjudicate all related SCNs, promoting uniformity in decisions.
Consolidated Adjudication for Multiple Taxpayers
For taxpayers sharing the same PAN but operating under different GSTINs or adjudicating authorities, the new process assigns a single adjudicating authority. The Joint Commissioner will handle all interconnected SCNs, ensuring a consistent approach to adjudication.
Handling of Penalty Notices
The common adjudicating authority will also adjudicate penalty notices issued under Sections 73, 74, 76, or other related provisions. This centralization simplifies the process and minimizes potential inconsistencies.
Implementation and Transition
The department has withdrawn Circular No. 12/2024-Kerala SGST, dated October 18, 2024. However, it assures taxpayers that any actions initiated under the previous circular remain valid. To facilitate a smooth transition, the department encourages stakeholders to submit queries for timely resolution.
Objective of the Revised Process
By revising the adjudication process, the Kerala GST Department seeks to eliminate inconsistencies, promote transparency, and enhance efficiency. These changes ultimately benefit both taxpayers and the department by fostering a more streamlined and reliable system.
For more details, consult Circular No. 21/2024-Kerala SGST.
