Composite GST Assessment Covering Multiple Years Invalid: Andhra Pradesh HC Cites Violation of S. 73 & 74 [Read Order]

The Andhra Pradesh High Court has ruled that a composite Goods and Services Tax (GST) assessment covering multiple tax periods is invalid, holding that such proceedings violate Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (CGST Act). Consequently, quashed the impugned assessment and appellate orders for want of jurisdiction.

The writ petition was filed by Madeena Steels, through its proprietor, Shaik Rizwan. An assessment order was issued by the Assistant Commissioner of State Taxes covering multiple tax periods ranging from July 2017 to January 2022.

The assessment made by the Assistant Commissioner was appealed to the Additional Commissioner (Appeals) through the statutory process. However, it was dismissed through a single composite appellate order.

The petitioner chose to appeal both of those orders to the High Court under Article226 of the Constitution of India as the proceedings were completed using a single composite show cause notice and assessment order for multiple financial years, which was beyond the scope of jurisdiction and against the law.

On behalf of the petitioner, Srinivasa Rao Kudupudi argued that the impugned assessment order was flawed as it consolidated multiple tax periods into a single proceeding, contrary to the statutory mandate under Section 73 and Section 74 of the CGST Act , 2017. The Act contemplates separate proceedings for each tax period, particularly once the due date for filing annual returns has elapsed.

The petitioner relied on earlier Division Bench ruling of the High Court in in W.P.No.11028 of 2025, which had categorically held that composite show cause notices or assessment orders spanning more than one financial year are unsustainable in law. On this basis, the petitioner sought complete quashing of both the assessment and appellate orders.

The Division Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar allowed the writ petition. The Court placed reliance on its earlier decisions holding that a single composite show cause notice or assessment order cannot be issued for multiple tax periods once the statutory timelines under the Central Goods and Services Tax Act, 2017 are crossed.

The Bench observed that Sections 73 and 74 of the Act envisage period-specific determination of tax liability, and consolidation of multiple years into a single assessment order defeats the legislative scheme and safeguards provided to the assessee.

On this limited but decisive ground, the Court set aside the assessment order and the appellate order, while granting liberty to the tax authorities to initiate fresh proceedings separately for each assessment year, in accordance with law.

The Court further clarified that the period during which the impugned orders remained in force would be excluded for the purpose of limitation. No order as to costs was passed.

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