The Office of the Commissioner of Commercial Tax, Madhya Pradesh, has issued detailed guidelines mandating virtual personal hearings in proceedings under the Madhya Pradesh Goods and Services Tax (MPGST) Act, 2017. The new Standard Operating Procedure (SOP) aims to promote transparency, efficiency and ease of compliance in tax administration and will come into force from April 1, 2026.
According to the circular issued from the Commissioner’s office in Indore, personal hearings are a mandatory requirement under various provisions of the MPGST Act, including Sections 73, 74, and 74A read with Section 75(4), Section 126(3) and Section 107(8). These provisions require authorities to provide taxpayers an opportunity to be heard before passing orders involving tax demand, penalties, or other adverse actions. The department stated that such hearings are essential to ensure adherence to the principles of natural justice and allow taxpayers to present their case fairly.
To strengthen the faceless and technology-driven tax administration system, the department has decided that all such hearings—including those in adjudication proceedings and appellate matters—will be conducted through virtual mode by default. This step is expected to make the process more convenient for taxpayers while also saving time, resources, and administrative effort.
Under the new procedure, hearings may be conducted through video conferencing platforms such as NIC Webex, Google Meet, or Microsoft Teams, and taxpayers or their authorized representatives will receive advance notice of the hearing date and time through the BO Portal. The virtual meeting link will be shared through registered email or mobile number at least one day before the scheduled hearing.
The SOP also specifies that taxpayers or their representatives must ensure proper internet connectivity and install the necessary applications before joining the hearing. Authorized representatives will be required to submit documents such as a power of attorney, photo identity proof, and contact details in electronic form before the hearing to establish their authorization to appear in the matter.
While the policy makes virtual hearings compulsory, the circular allows physical hearings in exceptional circumstances. Taxpayers may request an in-person hearing by submitting a justified application explaining the reasons. Such requests will be considered by the concerned authority, and approval for physical appearance may be granted only in rare and unavoidable situations.
The department further clarified that the proceedings of the virtual hearing will be formally recorded by the authority as a “Record of Personal Hearing.” The record will be prepared in PDF format, digitally signed, and shared with the taxpayer through registered email. Documents submitted electronically during the hearing will be treated as valid records under the Information Technology Act, 2000.
Tax authorities have also been directed to inform tax consultants’ associations and business organizations about the new procedure before its mandatory implementation. Any difficulties faced in implementing the SOP must be reported to the Commissioner’s office for resolution.
Read More: Typographical Error in GSTR-1 Can’t Deny IGST Refund on Exports; SC Upholds Gujarat HC Ruling
