Past Assessments in Indirect Taxes will not be Reopened for the Reason of increased turnover on account of use of Digital Means

No. 137/ 155 /2012-Service Tax( Part-I)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

Service Tax Wing

New Delhi, the 9th December , 2016

Recent initiatives of the government to curb black economy in the country encourage people to shift towards digital mode of payment while making financial transactions. By adopting a digital mode of payment, no financial transaction would remain undisclosed and consequently an enhanced turnover might get reflected in the books of accounts. Under the circumstances an apprehension has been raised that increased turnover on account of use of digital means of payment may lead to demands for the earlier period. It is hereby clarified that in indirect taxes, past assessments will not be reopened for this reason alone.

Yours faithfully

Dr. Gaurav Mittal

(Officer on Special Duty)