1. Legislative Background and Objectives
The Delhi GST Department has recently taken a significant step forward in ensuring procedural fairness and digital compliance in legal proceedings. By issuing Circular No. F.3(640)/GST/P&R/2025/348-55 dated 13.06.2025, the Department has mandated that all personal hearings in proceedings under the Delhi Goods and Services Tax Act, 2017 shall henceforth be conducted only through virtual mode.
The mandate aligns with the statutory requirement under the following provisions of the Delhi GST Act, 2017, which provide that an opportunity of being heard is compulsory, particularly before passing any order prejudicial to the interest of the assessee:
- Section 75(4) - Adjudication prior to the issuance of a tax demand;
- Section 126(3) - Opportunity to be heard prior to the imposition of penalty for minor breaches; and
- Section 107(8) - Personal hearing at the appellate stage.
When this notification is read in conjunction with the above provisions, it is clear that an opportunity of being heard, through virtual mode, must be mandatorily granted to all assessees prior to the passing of any adverse order by the Adjudicating Authority.
The objective of the circular is to reinforce the principles of natural justice, ensure transparency, and promote faceless adjudication under the GST framework. This initiative is in line with the Government of India's broader objective of digital governance.
Furthermore, the circular derives statutory backing from Section 4 of the Information Technology Act, 2000, which recognizes the legal validity of electronic records and digital communications, thereby granting full legal sanctity to virtual hearings and electronically recorded proceedings.
Important Point / Key Legal Tip
The circular explicitly states that an opportunity of being heard is required to be granted in accordance with the principles of natural justice. Therefore, if any Adjudicating Authority passes an order without affording such opportunity, it constitutes a clear violation of natural justice, which shall be a strong ground for challenge in appellate proceedings.
The circular is applicable to all Proper Officers, including Appellate Authorities, collectively referred to as "the Authority," functioning under the Delhi GST Act, 2017 and the Rules framed thereunder.
2. Mandatory Protocols for Virtual Hearings - Detailed Guidelines
The circular lays down a structured mechanism for the conduct of virtual personal hearings (PH). The protocols are as under:
(i) Compulsory Virtual Mode
All personal hearings shall be mandatorily conducted through video conferencing platforms such as Webex or Google Meet. Physical appearance shall be dispensed with, except in rare and exceptional cases.
(ii) Advance Notification & Platform Access
The date, time, and virtual meeting link for the hearing shall be communicated well in advance to the taxpayer or their authorized representative via registered email and/or mobile number.
(iii) Technical Assistance Officer
The communication shall also include the name and contact details of an officer designated to provide technical assistance for the virtual hearing. Sharing the meeting link with any unauthorized person is prohibited without prior consent of the Authority.
(iv) Technological Preparedness
The assessee or authorized representative is required to ensure that the virtual meeting application is pre-installed, with stable internet connectivity and readiness to join the hearing at the appointed time.
(v) Submission of Authorization Documents
The following documents must be submitted prior to the hearing:
- A valid vakalatnama or authorization letter;
- A self-attested photo ID; and
- Updated contact details.
Failure to comply with this requirement shall result in denial of participation.
(vi) Venue of Hearing (for Authority)
All virtual hearings are to be conducted from the official premises of the Adjudicating or Appellate Authority, to ensure transparency and proper recording.
(vii) Professional Decorum
Participants are required to appear in formal attire and must maintain professional decorum and seriousness throughout the proceedings.
(viii) Record of Personal Hearing (RPH)
Submissions made during the virtual hearing shall be:
- Recorded by the Authority in the online PH module;
- Digitally signed and converted to PDF format; and
- Emailed to the assessee's registered email ID, as well as to any alternate email address provided under Para (v).
(ix) Adjournments
Where an adjournment is granted, a formal notice specifying the next date of hearing shall be issued through the Back Office (BO) Portal.
(x) Submission of Additional Evidence
If the assessee intends to submit additional documents, the same shall be provided as self-attested scanned copies via official email prior to the hearing.
(xi) Requirement of Physical Submissions
In cases where physical documents are required, they must be duly attested and submitted during working hours at the concerned office of the Authority.
(xii) Validity of Electronic Records
All records of the virtual hearing and electronically submitted documents shall be considered legally valid under the CGST/DGST Acts read with Section 4 of the Information Technology Act, 2000.
(xiii) Exceptional Circumstances - In-Person Hearing
In rare and exceptional cases where virtual appearance is not feasible, an application may be made to the Zonal In-Charge, who may grant permission for physical hearing, only after recording written reasons.
(xiv) Departmental Officer Participation
Multiple officers of the Department may also participate in the virtual hearing, wherever necessary.
(xv) Grievance Redressal
Any difficulties faced in the implementation of the virtual hearing system must be promptly reported to the Policy and Research Branch of the Department.
3. Compliance Framework for Tax Professionals and Assessees
To ensure effective compliance with the circular, the following practices are recommended:
A. SOP and Technology Integration
- Ensure that the registered email and mobile number on the GST portal are accurate.
- Incorporate a "Virtual Hearing Checklist" in your standard operating procedures, covering aspects such as:
- Backup internet;
- Installed VC software;
- Webcam functionality;
- Device compatibility.
B. Pre-Hearing Document Management
- Maintain a repository of digitally signed authorizations, such as vakalatnamas and board resolutions.
- Organize and index all supporting documents in a single, consolidated PDF, optimized for size.
C. Virtual Hearing Conduct
- Log in at least 5 minutes early to the scheduled hearing time.
- Maintain courtroom-like decorum-dress formally, mute microphones when not speaking, and ensure a professional background.
D. Post-Hearing Documentation
Save and organize:
- The digitally signed Record of PH (RPH); and
- Adjournment notices or communications from the BO portal.
In case of inaccuracies or omissions, promptly file a rectification request with the Authority.
E. Handling Exceptional Cases
Where virtual appearance is not possible (due to disability, technical limitations, etc.), submit a formal written request with supporting documents to the Zonal In-Charge seeking permission for physical hearing.
Conclusion
This circular plays a crucial role in legal proceedings in twofold manner:
1. It reaffirms the statutory obligation to grant an opportunity of personal hearing before passing any adverse order against the assessee;
2. It mandates that such hearings must be conducted through virtual mode in all proceedings, including at the level of Appellate Authorities.
Non-compliance with the requirement of a personal hearing shall constitute a gross violation of natural justice, and shall form a valid and strong ground of challenge in appellate proceedings.
If you have any queries or face any legal issues in Income Tax or GST proceedings, feel free to contact us at:
The author can also be reached at varunmukeshgupta96@gmail.com
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