Indirect tax related quasi-judicial adjudication, appeal cases to mandatorily heard in virtual mode

Now, all quasi-judicial adjudication and appeal cases related with indirect taxes will mandatorily be heard in virtual mode as Central Board of Indirect Taxes & Customs (CBIC) has reinstated August 2020 position. Experts believe such a move is likely to complete the process quickly and bring down the logistic cost.

Meanwhile, in another move, the Government has said that from April next year, GST assessee with annual turnover of ₹10 crores and above would not be allowed to report e-Invoices older than 30 days.

Virtual Hearing

In an instruction to the field formations, CBIC said representations have been received on amendment in August 2020 instruction, which took place in July 2022. After re-examining the matter, it has been decided to withdraw the amendment. “With this the original instruction dated August 21, 2020 has been reinstated, making it mandatory for departmental/quasi-judicial/appellate authorities to conduct personal hearings for proceedings under the specified acts through video conferencing (VC), i.e., in the Virtual Mode,” the board said. Further, exception to allow personal hearing in physical mode by the concerned authorities may be resorted to on receipts of specific request from the party concerned.

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Earlier, an instruction was issued dated July 28, 2022, amending August 2020 instruction and accordingly it was said that the conduct of personal hearing by adjudicating/appellate authority will be done in the virtual mode only at the request of assessee. The virtual mode of heading shall not be mandatory. For the assessee not opting for the virtual mode, the personal hearing shall be taken in physical mode, it said. Now this will change.

Rajat Mohan, Senior Partner at AMRG & associates feels reinstatement of mandatory virtual hearings is a strategic move toward enhancing efficiency in tax dispute resolution. “By requiring virtual hearings under various tax laws, the CBIC aligns with India’s digital transformation goals, facilitating quicker case processing while reducing logistical burdens for taxpayers and their representatives. This digital shift supports the broader vision of a modernized, tech-driven administration,” he said

While the original 2020 instruction focused on adjudicating and appellate authorities, the reissued mandate arrives as India prepares for the formation of GST tribunals, which are expected to begin functioning soon. With GST tribunals likely to adopt this virtual framework, there’s a clear signal that virtual hearings will become the norm across all levels of tax dispute resolution. Additionally, GSTN’s ongoing development of a dedicated portal for these tribunals further reinforces this direction, ensuring a smooth integration of virtual processes.

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According to Mohan, flexibility of allowing physical hearings upon specific request ensures that while virtual hearings remain the standard, exceptional cases can still be addressed in person, maintaining fairness and accessibility. Furthermore, virtual hearings promote transparency, ease of access, and encourage taxpayer participation, especially for those in remote areas.

Reporting e-Invoice

Meanwhile, an advisory issued on GST portal lowered the AATO (Aggregate Annual Turnover) for reporting e-Invoices on IRP portals within 30 days to ₹10 crore and above from ₹100 crore and above. This means, “from April 1, 2025, taxpayers with an AATO of ₹10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP portals.”