GST Update

Desk of CA. Praveen Sharma – 1072 Series (CAPS) 

Delhi High Court: Vyome Therapeutics Limited v. Commissioner of CGST (East), Delhi & Others

 Vyome Therapeutics Limited approached the Delhi High Court against a GST demand order dated 28 March 2026.

 The dispute concerned a GST refund granted to the company for FY 2019–20, which the Department later treated as erroneous.

 The company argued that the order was time-barred under Section 74(10) of the CGST Act. According to it, the five-year limitation period should begin from the date on which the refund was granted.

 The GST Department stated that the irregular refund was detected during an audit conducted under Section 65. Therefore, limitation should be calculated from the due date for filing the annual return for the relevant financial year.

The Delhi High Court observed that Section 74(10) provides different starting points for calculating limitation. The applicable date depends upon the nature of the demand and the facts of the case.

The Court found that deciding the limitation issue would require examination of the refund, audit and adjudication records.

 Therefore, the High Court declined to decide the disputed issue in writ jurisdiction. It directed the company to challenge the demand order before the statutory Appellate Authority.

Key takeaway: When the calculation of GST limitation depends upon disputed facts and examination of records, the taxpayer should ordinarily file a statutory appeal instead of directly approaching the High Court.

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CAPS