Month: December 2023

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Two-factor Authentication to login to GST portal

We wish to update that GSTN has issued advisory on introducing two-factor authentication (2FA) for taxpayers to strengthen the login security on the GST portal.

As per the said advisory, the pilot rollout has been done for a state of Haryana and working seamlessly. Currently, 2FA will be rolled out for Punjab, Chandigarh, Uttarakhand, Rajasthan and Delhi in the 1st phase. In the 2nd phase, it is planned to be rolled out for all states across India.

As per the advisory, taxpayers would need to provide one-time password (OTP) post entering user id and password, the OTP will be delivered to their Primary Authorized Signatory “Mobile number and E-mail id”. Further, as per the advisory, tax-payers are requested to keep their email and mobile number of authorized signatory updated on the GST Portal for receiving the OTP communication. This OTP would only be asked, in case the tax-payer changes the system (desktop or laptop or browser) and location.

The solution has been rolled out from 1st of December’2023 for the 1st phase.

Copy of the advisory has been attached herewith for your reference.

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Dark Pattern

Central Consumer Protection Authority issued a notification on 30 November 2023 containing guidelines on prevention and regulation of DARK PATTERNS in India.


What is dark pattern?

It is practices or deceptive design pattern using UI / UX (user interface or user experience) interactions on any platform to mislead or trick users to do something they originally did not intend or want to do

These guidelines bring a legal framework for online e-commerce platforms, apps and websites that tricks their users/consumers and misleads them and violates their consumer rights.

The Annexure-1 of guidelines have a list of 13 specified dark patterns. They are—

1. False Urgency – Creates a sense of urgency or scarcity to pressure consumer into making a purchase or taking an action


2. Basket Sneaking – Adding addition product or services to the shopping cart without user’s consent.


3. Confirm Shaming – means a phrase, audio, video to create a sense of fear or shame


4. Forced action – Involves forcing consumers into taking an action to buy additional goods or subscribe or sign up for an unrelated service

 
5. Subscription trap – Makes it easy for consumers to sign up for a service but difficult for them to cancel it


6. Interface interference – involves making it difficult for consumers to take certain actions such as canceling a subscription or deleting an account


7. Bait and Switch – involves advertising one product but delivering another often of lower quality


8. Drip prices – practice whereby element of prices are not revealed upfront.


9. Disguised ads – advertisements that are designed to look like another types of content such as news articles, user generated content


10. Nagging – user is disrupted or annoyed by repetitive and persistent interactions in form of requests for action


11. Trick questions – deliberate use of confusing or vague language


12. Saas billing – collection of payments from consumers on a recurring basis


13. Rogue Malwares – ransomware to mislead or trick user into believing there is a virus on their computer and convince them to pay a fee

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Mandatory uploading of summary of SCN/Order on GST portal

In an important instruction issued by CBIC vide Instruction No. 04/2023, dated November 23, 2023, the Board has laid down the importance of electronic uploading of summary of Show Cause Notice (‘SCN’) in Form GST DRC-01 and Order in Form GST DRC-07.

Issue

  • Uploading Form GST DRC-01 and Form GST DRC-07 on GST portal is mandatory under Rule 142 of the CGST Rules.
  • However, this was not done in many cases. Resultantly, SCNs and Orders were struck down by Courts only on this infirmity.

Instruction

  • The Board, now, has clearly instructed the Proper Officers to upload Form GST DRC-01 and DRC-07 on the portal to avoid such non-compliance.

GABA & CO. | Remarks

  • In our recent experience in Chennai, when we argued this point to one Officer, he contended that since GST adjudicating portal is new for us, sometimes we genuinely miss these things. We smiled and replied, how ironical? Karma hits back!
  • On a serious note, the taxpayers should incorporate this argument in their replies (apart from merits) so that the matter can be closed at lower stage only.
  • Similarly, many officers have not signed SCN or Orders and uploaded the same on the portal arguing that once SCN or Order is uploaded electronically, it would be deemed to be electronically signed document under Information Technology laws and hence, valid. However, such an argument won’t help. Recently, one of the High Courts held that unsigned SCN/Order is not a valid document even if uploaded on GST portal.
  • One should also challenge the time barring of SCN on the ground that the Government has unlawfully extended the timelines for FY 2017-18 and FY 2018-19 under Section 168A of the CGST Act. This matter is pending before Gujarat & Allahabad High Courts and taxpayers are expecting favourable decisions from both High Courts.