The Documentation Identification Number (DIN) system of Central Board of Indirect Taxes (CBIC) will come into existence from tomorrow, i.e., on Friday, 8^th November 2019. This path breaking DIN system in indirect tax administration has been created as per the direction of Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman and from now onwards any CBIC communication will have to have a Documentation Identification Number. Government has already executed the DIN system in the direct tax administration. This step is to further the Government’s objectives of bringing transparency and accountability in the indirect tax administration also through widespread use of information technology.

Revenue Secretary Dr Ajay Bhushan Pandey said, “To begin with, in the indirect tax administration, the DIN would be used for search authorisation, summons, arrest memo, inspection notices and letters issued in the course of any enquiry. From now onwards, any communication from GST or Custom or Central Excise department without a computer generated DIN, would be treated as invalid and shall be non est in law or deemed to be as if it has never been issued.”

“The DIN system would ensure greater accountability and transparency in the indirect tax administration as well. It would also provide the taxpayer a digital facility to verify any communications. Further, the DIN system would be extended to other communications by the end of next month. No communication would be issued without DIN except only if it is in the specified exceptional circumstances,” said Dr Pandey.

CBIC Chairman Shri Pranab K. Das said, “This measure would create a digital directory for maintaining a proper audit trail of such communications. Now all such specified communications with DIN would be verifiable on the online portal cbicddm.gov.in and any communication which is not in conformity with the prescribed guidelines as per the DIN related Circulars dated 05.11.2019 shall be treated as invalid.”

It would be pertinent to mention here that while specifying such exceptional circumstances the CBIC Circulars related to DIN dated 05.11.2019 say that whenever any such manual communication would be issued, it would be necessarily required to specify reason of issuing such a communication without DIN and written approval of the competent authority shall be obtained within 15 days.

CBIC has specified that any communication issued manually under exceptional circumstances would have to be regularised on the system within 15 working days of its issuance.

The CBIC, in exercise of its power under section 168(1) of the CGST Act, 2017/ Section 37 of the Central Excise Act, 1944/ Section 151A of the Customs Act, 1962, is implementing the system for electronic generation of a Document Identification Number (DIN) for all such communications sent by its offices to taxpayers and other concerned persons.

Documentation Identification Number requirement ensures communications without DIN are invalid, verifiable online and must be regularised promptly. The administration requires a Documentation Identification Number (DIN) for specified indirect tax communications, rendering communications without a computer generated DIN invalid and verifiable via an online portal. Initially applicable to search authorisations, summons, arrest memos, inspection notices and enquiry letters, the DIN system must be used except in prescribed exceptional circumstances. Manual communications issued without DIN must state the reason, obtain competent authority approval within the prescribed period, and be regularised on the electronic system within fifteen working days.