GST Update

 Desk of CA. Praveen Sharma – 959 Series (CAPS) 

Allahabad High Court in the case of Oppo Mobile India Private Limited examined a writ petition challenging the validity of GST provisions relating to post-supply discounts. The petitioner argued that discounts agreed in the original contract should not impact transaction value merely because they are computed later.

The petitioner relied on earlier Supreme Court rulings recognizing that pre-agreed trade discounts cannot be denied on timing grounds. It was further submitted that the Government itself has proposed removal of the disputed provision through the Finance Bill, 2026 based on GST Council recommendations.

The petitioner also challenged the recovery proceedings initiated by the department. The Court observed that the issue involves significant legal questions requiring detailed examination and issued notice to the Attorney General of India.

As an interim measure, the Court granted relief by restraining further recovery, subject to deposit of 10% of the disputed tax amount, including any amount already paid.

The matter has been listed for further hearing with directions to reflect all counsels appearing in the case.

Link: CA. Praveen Sharma on Linkedin

Regards
CAPS