GST Update

Desk of CA. Praveen Sharma – 1128 Series (CAPS) 

Bombay High Court IN THE CASE OF Roadway Solutions India Infra Ltd. v. State of Maharashtra & Ors.

Citation: TS-915-HC(BOM)-2026-GST

Outcome: In favour of petitioner.

Dispute: The company challenged recovery of approximately ?22.12 crore in GST interest, including notices to its banks.

 Entire tax paid: The underlying tax liability had already been discharged; the remaining dispute concerned interest.

Appeals pending: The company had challenged the interest demands before the GST Appellate Tribunal.

 No percentage deposit on disputed interest: Section 112(8)(b) does not require a percentage-based pre-deposit of disputed interest alone where the entire tax is paid.

Admitted amounts remain payable: Compliance with the applicable requirements of Section 112(8) remains necessary.

 Deemed stay: Once those requirements are satisfied, Section 112(9) stays recovery of the balance until disposal of the appeals.

Recovery quashed: The Court set aside the recovery communications and consequential bank notices insofar as they concerned interest covered by the pending appeals.

Banking operations restored: Authorities were directed to withdraw those notices and lift debit restrictions imposed solely because of them.

 Interest liability undecided: The merits and computation of interest remained open for the Tribunal; the judgment granted recovery protection, not cancellation of interest.

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Regards

Best Regards,

CA Praveen Sharma

Mob. No. +91-98715 30610