Supreme Court Dismisses PIL on GST Compliance Rating Mechanism

The Supreme Court dismissed a PIL seeking enforcement of a GST compliance rating mechanism, stating it's a matter for Parliament. The plea, filed by Pradeep Goyal, aimed to ensure the compliance of Section 149 of the GST Act. The bench emphasized PILs should address crucial human rights issues.

The Supreme Court dismissed a Public Interest Litigation (PIL) on Friday, which sought the enforcement of a GST compliance rating mechanism. The court maintained it does not wish to interfere in the administration of GST, asserting that such matters fall within the realm of parliamentary responsibilities.

The GST compliance rating, which scores taxpayers based on criteria like timely filing of returns, details of input credits, and taxes paid, helps assess compliance with tax rules. A bench led by Chief Justice D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, emphasized that PIL jurisdiction should be reserved for urgent human rights issues.

The plea was filed by Pradeep Goyal, with lawyer Charu Mathur representing him. The bench, disagreeing with the petition, dismissed the PIL, noting that Section 149 of the Central Goods and Services Tax Act, 2017, already prescribes the mechanism for updating and communicating the compliance rating score.

(With inputs from agencies.)