The Commercial Tax Department, Government of Madhya Pradesh, has issued a Standard Operating Procedure (SOP) for conducting virtual personal hearings in proceedings under the Madhya Pradesh Goods and Services Tax (MPGST) Act, 2017. The guidelines have been issued by the Office of the Commissioner, Commercial Tax, Indore, with the objective of strengthening transparency, efficiency and technology-driven tax administration. The SOP will come into mandatory effect from 1 April 2026.
The SOP provides a structured procedure for conducting personal hearings in cases relating to tax assessment, adjudication and appeals under the MPGST Act. As per the provisions of the Act, including sections 73, 74, 74A, section 75(4), section 126(3), and section 107(8), it is mandatory for tax authorities to provide taxpayers an opportunity of personal hearing before passing adverse orders or determining tax liabilities. The concept of personal hearing ensures that taxpayers facing tax demand, penalty or any adverse action are given a fair opportunity to present their case in accordance with the principles of natural justice.
In order to further strengthen the faceless and technology-enabled tax administration system, the department has decided that all personal hearings under the MPGST Act shall ordinarily be conducted through virtual mode. This will apply to proceedings under sections 73, 74 and 74A prior to passing orders, proceedings under section 126, and appeals under section 107(8). The virtual mode is expected to make the hearing process more accessible for taxpayers while also saving time, resources and administrative effort.
The SOP states that taxpayers or their authorized representatives will participate in the hearings through video conferencing platforms such as NIC Webex, Google Meet, or Microsoft Teams, using computers, laptops or mobile devices with appropriate internet connectivity. The date and time of the virtual hearing will be communicated through the Business Operations (BO) Portal, and the meeting link will be sent in advance to the registered email address or mobile number of the taxpayer or their authorized representative.
Taxpayers or authorized representatives are required to ensure that necessary applications or software for virtual meetings are installed beforehand and that adequate network connectivity is available. Authorized representatives must submit required documents electronically in advance, including a power of attorney or authorization letter, identity proof, and contact details, failing which they may not be permitted to represent the taxpayer during the hearing.
The guidelines also clarify that hearings will be conducted from the official office of the concerned authority, and all participants must maintain appropriate decorum and professional conduct during the proceedings. The details of each virtual hearing will be formally recorded by the concerned authority in a “Record of Personal Hearing” document, which will be prepared in PDF format, digitally signed by the officer and shared with the taxpayer through the registered email address.
The SOP further provides that any documents or additional evidence that the taxpayer wishes to present during the hearing may be submitted in advance through official email in scanned and self-attested format. Such records and documents submitted electronically will be considered valid evidence under the MPGST Act and will be treated as legally valid electronic records in accordance with Section 4 of the Information Technology Act, 2000.
In exceptional and unavoidable circumstances, taxpayers may request a physical hearing by submitting a reasoned application explaining why virtual hearing is not feasible. However, such requests will be considered only in special cases and subject to approval by the concerned authority. Information regarding cases where physical hearings are permitted will also be reported to the jurisdictional Joint Commissioner.
The Commercial Tax Department has directed all appellate authorities and tax officers across the state to begin implementing the procedure immediately and to ensure full compliance from 1 April 2026 onwards. Officers have also been instructed to inform trade associations, tax consultants and business organizations about the new procedure before the effective date to ensure smooth implementation.
The introduction of this SOP is expected to modernize the hearing process under the MPGST framework, reduce physical visits to tax offices, and improve the ease of compliance for taxpayers through digital and faceless administration.
The SOP can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Virtual-Hearing-SOP.pdf
