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Gauhati High Court Rules GST Deadline Extensions Invalid, Declares Orders Passed on "Wrong Footing"

 
In a joint effort between our GST Consultancy Firm, GST DOST, our client M/S NORTH EAST SILLIMANITE, a highly respected firm Saurabh Agarwal and Associates, and a seasoned legal team, the Honourable Gauhati High Court has quashed GST orders issued beyond the statutory limitation period.

This victory provides immense relief to thousands of businesses, ensuring that no unjust penalties or actions are enforced due to improper extensions. Our proactive guidance and expert handling of legal intricacies have once again proven to safeguard the interests of our clients.

In a pivotal judgment dated September 19, 2024, the Honourable Gauhati High Court quashed multiple GST Orders-in-Original, delivering a major blow to extended compliance deadlines under the Central Goods and Services Tax Act, 2017 and the Assam Goods and Services Tax Act, 2017.

The case, filed by M/S. Barkataki Print and Media Services and Others, including our client M/S NORTH EAST SILLIMANITE, challenged the legality of the Central Government’s Notification No.56/2023-CT issued on December 28, 2023, which the court found to be based on false claims.

Key Findings of the Court:

1. The extended deadlines invoked under Notification No.56/2023-CT were declared invalid, as there was no recommendation from the GST Council, a requirement under Section 168A of the GST Act.

2. The government’s claim that the notification was issued "on the recommendation of the Council" was found to be false.

3. The absence of force majeure conditions, essential for invoking Section 168A, further invalidated the notification.

4. Assam did not issue a corresponding notification, rendering the extended deadlines unenforceable under the State GST Act.

5. Orders passed beyond the prescribed period under Section 73(10) of the GST Act were deemed beyond jurisdiction.

Recommendation from CA Vikash Dhanania of GST DOST:

“Businesses affected by these invalid extensions should immediately review any GST assessments or penalties received under the extended deadlines. This ruling opens the door for appeals and potential refunds or penalty reversals. It’s critical to consult with a GST expert to understand your rights and file any necessary appeals promptly,” advises CA Vikash Dhanania, Founder of GST DOST.

This judgment sets a new precedent, ensuring that extended GST deadlines cannot be improperly invoked. Businesses penalized under such invalid extensions can now challenge these orders, potentially securing relief from hefty fines and compliance burdens. Our team's collaborative effort, combined with expert legal support, has brought significant peace of mind to our clients, reaffirming our commitment to safeguarding business interests.

Take Action Now!

Has your business been impacted by extended GST deadlines? Now is the time to act! With this recent court ruling, you may be eligible for relief from penalties and unjust assessments. Our expert team at GST DOST, in collaboration with top legal and CA professionals, is ready to guide you through the process and help secure your business’s future.

Contact us today to review your GST compliance, explore potential appeals, and protect your business from unnecessary burdens. Let us bring you the same peace of mind that we provide to all our clients.

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