GST Update

 Desk of CA. Praveen Sharma – 876 Series (CAPS) 

ALLAHABAD HIGH COURT IN THE CASE OF Vimlesh Kumar Contractor

The Court heard submissions from the petitioner’s counsel, the State authorities, and counsel for respondent no. 4. The petitioner challenged orders dated 28.04.2024 and 21.01.2025 issued under Section 73 for FY 2018-19, alleging mismatch between GSTR-3B and Form 26AS. The notice was uploaded only under “additional notices,” remained unnoticed, and resulted in an ex-parte assessment and dismissal of the appeal.

The petitioner argued that no GST liability existed because the contract work for UP Jal Nigam was completed entirely in AY 2015-16 and 2016-17 under the VAT regime, and only the payments were received later. VAT had been deducted and certified, but the GST authorities ignored this and proceeded without verification.

The State argued that the petitioner failed to prove that the receipts were pre-GST. However, counsel for Jal Nigam confirmed that the work indeed related to pre-GST periods.

The Court held that GST cannot be levied on payments received for work executed before July 2017, and the authorities exceeded their jurisdiction. The orders were quashed, the writ petition allowed, and any amount paid must be refunded with applicable interest within one month.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS