GST Daily
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Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com .
HC directed GST Authority to provide another opportunity to assessee to explain difference between GSTR-3B and GSTR-2B?
The petitioner was a dealer of woven fabrics in cotton and ready-made garments. The department issued show cause notice to petitioner alleging that there was disparity between GSTR-3B and GSTR-2B returns. The petitioner didn’t reply to the said notice on the ground that he was awaiting particulars from his supplier.??
However, the department passed the order and made entire tax liability with regard to disparity between GSTR-3B and GSTR-2B returns. It filed writ petition and contended that the petitioner did not have a reasonable opportunity to contest the tax demand.??
The Honorable High Court noted that the petitioner was negligent in not submitting documents upon receipt of the intimation and show cause notice. Nonetheless, if the explanation of the petitioner was valid, the interest of justice would be prejudiced unless the petitioner was provided an opportunity to explain the alleged disparity.??
Therefore, it was held that the impugned order was liable to be quashed subject to condition that petitioner remits 10% of disputed tax demand and department was directed to provide a reasonable opportunity to petitioner and thereafter issue a fresh assessment order.??
HC quashes cancellation of GST registration as assessee filed all pending returns within extended due date?
The petitioner was engaged in business of infrastructure and its GST registration was cancelled by the department on the ground of non-filing of returns for continuous period of six months. It filed writ petition against the cancellation order and contended that the cancellation of GST registration was solely based on a show cause notice issued during COVID-19 pandemic, when time for filing returns had been extended by Government.??
The Honorable High Court noted that the cancellation order was passed on 25-8-2023 and the notice for personal hearing was issued after cancellation order. It was also submitted by the petitioner that it had approached the department for revocation of cancellation of registration and the date of personal hearing was again fixed on 10-12-2023 knowing fully well that it was a Sunday.??
Therefore, the Court held that the cancellation of GST registration based solely on a show cause notice issued during COVID-19 pandemic, when time for filing returns had been extended by Government, was not sustainable as and the petitioner submitted its returns within the extended period. The Court also held that the notice for personal hearing had been deemed unwarranted as authorities were not permitted to issue such notices after cancellation order had already been passed. Thus, the Court set aside the impugned order of cancellation of GST registration and directed the department to forthwith restore GST registration of petitioner.
That’s it from us for today! Stay Tuned for more updates from Taxmann.com .
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