Introduction
The Rajasthan GST Department has announced a mandatory virtual hearing system for all tax matters, aiming to enhance transparency and efficiency in tax proceedings. This move aligns with para 143 of the Budget Speech 2025-26 and is authorized under Section 168 of the Rajasthan GST Act, 2017 (RGST Act, 2017).
This initiative is part of the broader digital transformation of tax administration in Rajasthan, ensuring that taxpayers can conveniently participate in hearings without being physically present.
Key Highlights of the Virtual Hearing Guidelines
- Mandatory Virtual Hearings:
- All GST-related hearings in Rajasthan will be conducted online.
- Taxpayers and their authorized representatives must attend hearings virtually via the designated portal.
- Faceless Scrutiny & Audits:
- Business Audit and Enforcement Wings will conduct tax assessments and audits without requiring physical appearances.
- Tax scrutiny and enforcement will be carried out by officers beyond the taxpayer’s jurisdiction.
- Ease of Document Submission:
- Taxpayers can submit documents online instead of visiting tax offices in person.
- Secure digital platforms will be used to ensure confidentiality.
- Reduced Physical Interaction:
- Eliminates the need for in-person appearances before tax officers.
- Aims to prevent unnecessary delays and increase procedural efficiency.
- Compliance with Legal Mandates:
- The policy is in line with Section 168 of the RGST Act, 2017.
- Adheres to guidelines from the Ministry of Finance and CBIC for digital taxation reforms.
Impact on Taxpayers and Businesses
For Business Owners:
- Saves time and travel costs associated with physical hearings.
- Reduces bureaucratic delays in tax assessments.
- Ensures faster resolution of disputes and clarifications.
For Tax Professionals & Consultants:
- Increases efficiency in managing multiple client cases remotely.
- Enables better documentation and streamlined case handling.
- Reduces dependency on physical office visits, promoting remote work capabilities.
For Freelancers and Small Businesses:
- Simplifies compliance with GST procedures.
- Provides easier access to tax resolution mechanisms without legal complexities.
Legal Context and Precedents
- Section 168 of the RGST Act, 2017 empowers the state government to issue directions and procedural guidelines for GST matters.
- Supreme Court ruling in Radha Krishna Industries v. State of Himachal Pradesh (2021) upheld that virtual hearings align with the principles of natural justice and procedural fairness.
- CBIC Circular No. 157/13/2021-GST supports digital hearings in taxation matters for procedural efficiency.
Challenges and Possible Solutions
1. Digital Access Issues
- Concern: Some taxpayers may lack access to digital infrastructure.
- Solution: Establishing GST Suvidha Kendras (GSKs) for guided virtual hearings.
2. Technical Glitches
- Concern: Connectivity issues during hearings.
- Solution: Implementing a backup system for taxpayers to submit video or recorded responses.
3. Cybersecurity Risks
- Concern: Confidential tax data could be vulnerable to cyber threats.
- Solution: Government-backed encrypted platforms to ensure security.
Future Scope and Digital Expansion
- Expansion of AI-driven faceless assessments to minimize human intervention.
- Integration of blockchain technology for secure tax filing and audits.
- More states may adopt similar virtual hearing models to enhance compliance efficiency.
The shift to virtual GST hearings in Rajasthan marks a significant step toward digital tax governance, improving efficiency while ensuring compliance. Taxpayers, professionals, and businesses must adapt to these new procedural requirements to ensure smooth interactions with the GST department.