The Allahabad High Court has recently stayed the GST Demand, granting an interim relief to Paytm (One97 Communications Limited) from the liability to furnish ₹1081 Crore in relation to the supply of DTH Recharge Vouchers and Mobile Recharge Coupons.
The bone of contention in the dispute is whether the supply of mobile recharge coupons and Direct To Home (DTH) recharge vouchers to recipients, who are located in other States, would be inter-state supply or intra-state supply.
The Assessee, Paytm contended that the supply of vouchers were inter-state. However, rejecting this, the department demanded the company to furnish the tax amount.
The petitioner Counsel contended that the tax amount has already been paid in Uttar Pradesh, being treated as inter-state supply. In addition to that, the petitioner counsel submitted that the issue was already referred to the Central Board of Indirect Taxes & Customs (CBIC) by a representation, of which the response is still awaited.
The Central Board of Indirect Taxes, through the counsel, submitted that the representation shall be considered and a reply shall be given within three months, with appropriate directions regarding the same.
It was observed that, “In view of the fact that the amount of tax due on the transaction has already been paid and only dispute is whether it is to be treated as intra-State sale or inter-State sale, recovery of the demand raised vide order dated December 3, 2022 shall remain stayed till the next date of hearing”.
The Division Bench that heard the case adjourned the matter, while giving the next date of hearing as April 27th and stayed the Goods and Services Tax (GST) Demand in lieu of supply of mobile recharge coupons and Direct To Home (DTH) recharge vouchers to recipients, who are located in other States.
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