Top Stories Mismatch between GSTR 3B and GSTR 9C: Madras HC grants Final Opportunity for Hearing [Read Order] In the matter of discrepancies involving mismatches between GSTR-3B and GSTR-9C, Suppression of outward supply and Unpaid tax on rental receipts were identified, the court directed for one last hearing By Navasree A.M – On December 24, 2024 10:40 am – 2 mins read
In a mismatch between the GST Returns 3B and the GSTR 9C, the Madras High Court has granted a last opportunity to explain the discrepancies to the petitioner on 25% pre-deposit of the disputed tax. R. Ramesh, the petitioner is a contractor for various Tamil Nadu Government departments and registered under the GST Act, filed returns and paid taxes for the relevant period. However, during scrutiny, the following were found: mismatches between GSTR-3B and GSTR-9C Suppression of outward supply Unpaid tax on rental receipts were identified. Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
GSTR-9C is a reconciliation statement that registered taxpayers under the GST must file annually. It reconciles the data filed in the GSTR-9 (Annual Return) with the audited financial statements of the taxpayer. Despite receiving a Form GST ASMT-10 intimation on April 3, 2024, followed by a Show Cause Notice (GST DRC-01) on May 6, 2024, and being offered a personal hearing on June 6, 2024, the petitioner neither responded nor appeared. Consequently, the tax authorities confirmed the proposed assessment in an impugned order dated June 28, 2024. The petitioner contended that the notices and order were not served personally or via registered post but were uploaded on the GST portal, which they could not access. This, they argued, hindered their ability to participate in the proceedings.
The petitioner sought an opportunity to clarify the discrepancies. Citing a decision in the matter of M/s.K.Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise in W.P.(MD)No.11924 of 2024 from the Court, it requested hearing on pre-deposit and also requested the lifting of a bank account attachment imposed during recovery proceedings. Justice Mohammad Shaffiq set aside the impugned order, directing the petitioner to deposit 25% of the disputed tax within four weeks.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here The court ordered it to be treated as a show cause notice, and the petitioner will have another four weeks to submit objections with supporting documents. The GST was also directed to review the objections and issue a fresh order after a fair hearing. The Court also directed the immediate lifting of the bank attachment upon compliance with the pre-deposit condition. However, it was clarified that the non-compliance of the directions within the stipulated time will result in the restoration of the original assessment order. To Read the full text of the Order CLICK HER