Government released a new circular, know how action will be taken under section 107 and 108

New Delhi: The Central Indirect Taxes and Customs Board (CBIC) of the Central Government has issued an important new circular regarding GST. This circular brings a major change in the rules related to GST appeal. In this, a new system has been created under Section 107 (Appeal) and Section 108 (revision/revision), so that the process of departmental appeal can be further clear and standardized.

Why this new rule was brought?
It was often the case that the department itself did not agree with the order passed by any GST’s Adjudicating Authority. The department did not have a clear and uniform process to challenge such orders. Different methods were being adopted at different places, causing confusion. This new circular has been brought only to overcome this problem and create a standard operating procedure (SOP).

What is this new system?
Under this new circular, now the process of departmental appeal has been streamlined:

1. Order review: Now if a departmental officer finds an order wrong, illegal or against the interests of Revenue, he will review it.

   
   

2. Case will be sent to Revision Authority: After review, instead of filing an appeal directly under Section 107 to challenge that order, the case appointed under Section 108 Revisional authority Will be sent to

3. Right to amend the order: The Revision Authority will have the right to examine that old order and if he finds that order wrong, then legally revise it.

What does it mean?
The main objective of this new system is to make the process of departmental appeal internal and effective. This will ensure that when the department does not agree with an order, a standardized process is followed. This is expected to reduce unnecessary cases and increase transparency in the entire process. It will also bring clarity to taxpayers as to what medium and under which process departmental objections will proceed.

Overall, this circular is an important improvement in administrative aspects of the GST law, which will make the appeal and revision processes more efficient.