GST Daily
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GST registration to be restored as assessee deposited amount to comply with Rule 86B requirements: HC
The petitioner was registered under GST and GST department issued Show Cause Notice proposing to cancel the petitioner's GST registration on the ground that it had violated Rule 86B by using electronic credit ledger to discharge his liability towards output tax in excess of 99% of tax liability.
The petitioner filed a writ petition and claimed that suspension of petitioner's GST registration was due to non-compliance with Rule 86B of CGST Rules, 2017 and the petitioner had subsequently deposited a sum of Rs.80,000/- to comply with requirement, post issuance of show cause notice.
The High Court noted that the petitioner had not complied with Rule 86B of the CGST Rules, which in effect stood remedied by deposit of the amount. The Court also observed that it is necessary to bear in mind that suspension of a taxpayer's GST registration has wide adverse ramifications for the business of the taxpayer and such an action can be taken only after due consideration and held that the suspension of GST registration would not continue after deposit of required amount and it must be restored forthwith.
State GST authority can't initiate proceedings if Central GST authority issued SCN on same matter
The petitioner was engaged in the business of assembly, manufacturing, and trading in multi-utility vehicles and passenger cars in India. The Central GST authorities had already issued SCNs to the petitioner concerning ITC matters on specific dates (August 11, 2022, and September 20, 2022). Subsequently, the State GST authorities issued another SCN regarding the same ITC matter, demanding payment along with interest and penalties.
The petitioner argued that Section 6(2)(b) prohibits the State GST from initiating parallel proceedings if the Central GST authorities have already initiated proceedings on the same subject matter. Therefore, the Court quashed the notice issued by the State GST authorities being without jurisdiction. In the case of the Central GST show cause notice, the matter was remanded for reconsideration in light of Circular No. 211/5/24-GST dated 26.06.2024 and precedent in Bosch Limited case.
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