Courts On GST (Part VI)

Dr Sanjiv Agarwal

Goods and Services Tax (GST), introduced from July 1, 2017 is over seven months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council has however, been making regular changes to fix the anomalies and hardship faced by taxpayers. There are no legislative changes in the Union Budget 2018. However, based on GST Council recommendations, there may be some changes in the GST laws which may be introduced in second leg of Budget session in March, 2018.

Taxpayers have already started challenging various provisions of GST laws and rules framed thereunder with more than 75 writs being filed in different courts. High courts have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBEC may move to Supreme Court where the verdict is against the Government.

Here are a few more judicial pronouncements for information and guidance of various stakeholders. It is expected that the litigation is bound to go up as time passes by.

- In M/s Radhey Lal Jaiprakash Neadarganj Dadri v. State Of U.P. and 5 Others (2017) 11 TMI 1022; 6 GSTC 234 (Allahabad), where the application for GST registration was not filed by the assessee in the stipulated time, it was held that since the user ID and password of the assessee was not working no coercive action would be taken against the petitioner for not filing the GST return within the time stipulated.