Unaware of GST Proceedings on GSTR 3B vs 2A Disparity as Notices Uploaded in Additional Notices and Orders Tab: Madras HC directs 10% Pre-deposit [Read order]

The Madras High Court directed the 10% pre-deposit condition for challenging the order where the petitioner lacked Goods and Services Tax ( GST ) proceedings on discrepancy between GSTR 3B and GSTR 2A as notices uploaded in Additional Notices and Orders Tab of GST portal.

The Petitioner, KGK Construction challenged the order dated 11.10.2023, citing a lack of awareness regarding the proceedings leading to the impugned decision.

The petitioner contended that notices and orders were only accessible via the "View Additional Notices and Orders" tab on the GST portal, without any direct communication. This communication lapse formed the basis of the writ petition filed to contest the aforementioned order.

During proceedings, the petitioner's counsel emphasized that the tax dispute stemmed from a discrepancy between the petitioner's GSTR 3B return and the auto-populated GSTR 2A. It was revealed that the petitioner was willing to remit 10% of the disputed tax demand as a condition for remand, indicating a cooperative approach to resolving the matter. Additionally, the petitioner asserted strong grounds, including issues related to limitation, warranting a fair reconsideration of the case.

Responding to these contentions, the Government Advocate pointed out the issuance of an intimation in June 2023, a show cause notice in July 2023, and a personal hearing notice on 03.10.2023. However, the petitioner's argument underscored the need for direct communication channels beyond online notifications.

The court recognized the gravity of the situation, emphasising the necessity of affording the petitioner an opportunity to contest the tax demand. It was noted that the tax proposal was confirmed due to the petitioner's failure to respond to the show cause notice.

Thus, a single bench of Justice Senthilkumar Ramamoorthy set aside the order dated 11.10.2023 and remanded the matter for reconsideration. The remand was conditional upon the petitioner remitting 10% of the disputed tax demand within two weeks from the receipt of the court's order.

The petitioner was granted the opportunity to submit a reply to the show cause notice within the specified period. Additionally, the respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue a fresh order within three months from the receipt of the petitioner's reply. Accordingly, the writ petition was disposed of.

To Read the full text of the Order CLICK HERE

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