Individual alleges GST Demand Illegal Due to Turnover Below ₹20 Lakh: Patna HC Directs to take Appellate Remedy [Read Order]
The Court observed that since the petitioner had failed to file a detailed reply to the show cause notice and disputed factual issues such as the applicability of 18% GST these matters ought to be discussed before the Appellate Authority under the CGST Act.
![Individual alleges GST Demand Illegal Due to Turnover Below ₹20 Lakh: Patna HC Directs to take Appellate Remedy [Read Order]](https://images.taxscan.in/h-upload/2025/08/07/2073984-gst-demand-taxscan-1.webp "Individual alleges GST Demand Illegal Due to Turnover Below ₹20 Lakh: Patna HC Directs to take Appellate Remedy [Read Order]")
The Patna High Court disposed of a writ petition filed by an individual who challenged a GST ( Goods and Services Tax ) demand order on the ground that his turnover was below the ₹20 lakh threshold, exempting him from registration under the Central Goods and Services Tax (CGST) Act, 2017. The petitioner sought to quash the demand order dated 22.01.2025 and the summary order in Form...
The Patna High Court disposed of a writ petition filed by an individual who challenged a GST ( Goods and Services Tax ) demand order on the ground that his turnover was below the ₹20 lakh threshold, exempting him from registration under the Central Goods and Services Tax (CGST) Act, 2017.
The petitioner sought to quash the demand order dated 22.01.2025 and the summary order in Form GST DRC-07 issued by the Superintendent of Central GST, contending that the entire proceedings were without jurisdiction according to the Notification No. 10/2017-Integrated Tax dated 13.10.2017.
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The petitioner, in its relief said that “For further holding and a declaration that the petitioner was fully exempted and not at all liable to take registration and comply with any statutory formalities including admission and payment of tax in view of section 22 read with section 24 (i) read with section 23 (23) read with notification number 10/2017 -integrated tax New Delhi dated 13.10.2017 issued by the Central Board of Excise and Customs, Ministry of Finance, government of India in accordance with which the annual turnovers of the petitioner for the financial years in question were below the threshold limit of Rs. 20 lakhs and therefore the petitioner fell in the category of exempted persons for obtaining registration under the central act 2017;”
The petitioner also sought to quash the order dated 22.01.2025, the summary of order issued in form GST DRC-07 dated 23.01.2025 passed by the respondent superintendent and show cause notice issued in terms of section 74 (1) of the Central Act, 2017.
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However, the Division Bench comprising Justices P.B. Bajanthri and Alok Kumar Pandey declined to entertain the writ on merits.
The Court observed that since the petitioner had failed to file a detailed reply to the show cause notice and disputed factual issues such as the applicability of 18% GST these matters ought to be discussed before the Appellate Authorityunder the CGST Act.
The bench allowed the petitioner to approach the appellate forum within two months. Also, it directed the Appellate Authority to consider condoning the delay in filing the appeal by applying Section 14 of the Limitation Act, 1963, and to decide the matter within three months of receiving the appeal.
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