Validity of CBIC Notifications u/s 168A GST Act: Supreme Court to Take Up Matter [Read Judgement]

The Supreme Court has admitted the petition challenging the validity of notifications issued by Central Board of Indirect Taxes and Customs ( CBIC ) under Section 128A of the Goods and Services Tax ( GST ) Act. The matter will be taken up soon by the apex court.

These Notifications Nos. 09/2023 and 56/2023 relaxed the time limits to decide show cause notices (SCNs) issued under Section 73 of the GST Act in respect of financial years 2018-19 and 2019-20 on grounds of administrative exigencies and the aftermath of the pandemic COVID-19. The petition arises out of the decision of the Telangana High Court.

Also read: Validity of CBIC notification u/s 168A of GST Act under Challenge: Delhi HC directs Authority to Pass order subject to Supreme Court’s Decision

The petitioner’s counsel argued before the high court that under Section 168A of the GST Act, any extension notification must be issued on the recommendation of the GST Council. In this case, Notification No. 56/2023 was issued not on prior recommendation, but based on a decision by the GST Implementation Committee/Law Committee, which was only ratified by the GST Council six months later.

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The counsel stated the legal distinction between “recommendation” (a prior input that forms the basis for a decision) and “ratification” (an approval after a decision has already been made). Therefore, they argued, mere ratification after the fact does not meet the statutory requirement under Section 168A, which demands prior recommendation from the GST Council.

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In addition, the petitioners argued that repeated extensions given in purported exercise of Section 168A of the GST Act are arbitrary and violative of Article 14 of the Constitution. The impugned notifications are discriminatory to the extent they partly modify the earlier notifications dated 01.05.2021 and 28.06.2021. The Revenue has taken undue benefit of extension of limitation for initiating and completing adjudicating proceedings.

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The Telangana high court directed the petitioners to take the alternative remedy of appeal. It stated that “These matters were entertained despite availability of above remedy because the petitioners assailed the impugned notifications Nos.13 of 2022, 9 and 56 of 2023. In view of order of Supreme Court dated 10.01.2022, since we find no reason and justification to interfere with those notifications. The petitioners may avail the statutory remedy of appeal.”

Aggrieved by this decision of the high court, the petitioners preferred appeal before the Supreme Court, where it was filed on 1st February 2025. The bench of Justices J.B. Pardiwala and R. Mahadevan is expected to consider the matter on 14th May 2025.

Also read: GST hits Record ₹2.36 Lakh Crore in April 2025 Amid Refund Surge, IGST Dip

To Read the full text of the Order CLICK HERE

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