Composite GST Demand for Multiple AYs Not Valid: AP HC orders to issue Fresh Orders Separately

The Andhra Pradesh High Court held that composite GST ( Goods and Services Tax ) demand order for multiple Assessment Years is invalid. The court directed to issue fresh assessment orders separately.

The petition was filed by Akshaya Engineering And Project Services challenging the single GST demand order issued for multiple assessment years. The department has issued a single demand order covering the period from 2017-18 to 2021-22 that is for 5 years.

Adv. S. Bala Mohan Ranga, the counsel appearing for the petitioner raised multiple grounds, however, he has stressed the issue of single GST demand order for 5 AYs. He asserted that a single order of assessment, issued for more than one financial year, would be violative of the provisions of Section 73 and Section74 of the GST Act, 2017.

Therefore, the petitioner requested to set aside the assessment proceedings.

The court noted decision of division bench of this court which held that “a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if assessment is taken up before due date for filing of annual return or for more than one year if due date for filing of annual return has been reached.”

Even though the petitioner raised multiple grounds, the court noted the composite demand was the primary issue for the petitioner. Therefore, the bench of Justice Raghunandan Rao decided to dispose of the matter based on this sole ground.

The court set aside the order dated 13.04.2023 and remanded the matter back to the GST department for issuance of fresh orders separately. The bench also cancelled the auction of the immovable property of the petitioner.

The high court also clarified that the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes of limitation. The matter was disposed of accordingly.