Transfer of Tata Projects’ ECL under GST: Rajasthan HC Directs GSTN to Act on Grievance Within Two Months [Read Order]

The Rajasthan High Court, with regards to the transfer of Electronic Cash Ledger ( ECL ) under GST has directed the Goods and Services Tax Network ( GSTN ) to address the grievance raised by Tata Projects Limited within two months.

The division bench comprising Justice Avneesh Jhingan and Justice Mukesh Rajpurohit passed this order while disposing of a writ petition filed by the company.

Tata Projects Limited approached the court seeking directions for the transfer of the cash balance available in its electronic cash ledger, in terms of Section 49(10)(b) of the Central Goods and Services Tax Act, 2017 read with Rule 87(14) of the CGST Rules. The petitioner contended that despite fulfilling the statutory requirements, the transfer request had not been acted upon.

In response, the State GST authorities (Respondent Nos. 1 and 2) informed the court that the tax demands raised via three separate orders dated 25.04.2024, pertaining to the financial year 2018-19, were now marked as ‘held in abeyance’ instead of ‘recoverable.’

The authorities also confirmed that the taxpayer’s grievance had been formally lodged on the GST portal and assigned Ticket No. 1236020. However, they stated that the GST portal is operated independently by GSTN (Respondent No. 3), over which the state authorities have no control.

The High Court directed GSTN to consider and decide the petitioner’s grievance in accordance with the law within two months of receiving a certified copy of the order. The bench also clarified that the petitioner shall be free to seek legal remedies if aggrieved by the outcome.

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