Top Stories Taxable Suppliers Discrepancy in GSTR-3B and Form 26AS u/s 203AA of Income Tax: Madras HC order hearing on 25% Pre-deposit [Read Order] On compliance with the pre-deposit, the impugned assessment order was directed to be treated as a show cause notice, and the petitioner must submit objections within four weeks, along with supporting documents By Navasree A.M – On December 24, 2024 11:32 am – 2 mins read In a dispute of taxable supplier’s discrepancy in the Goods and Services Tax Returns ( GSTR ) – 3B and the form 26AS under Section 203AA of Income Tax Act, 1961, the Madras High Court has granted final hearing on 25% pre-deposit. The petitioner, R.Jayaramakrishnan registered under GST Act, had its original GSTIN canceled in September 2018 and was later assigned a new GSTIN in September 2019. The petitioner had filed its monthly returns in GSTR-1 and GSTR-3B through the common portal. Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The petitioner’s counsel argued that a show cause notice was issued on 22.08.2023, followed by a personal hearing on 22.09.2023, but the petitioner neither filed a reply nor attended the hearing. The petitioner claimed that the notices and assessment order were not served through traditional methods, but were instead uploaded on the GST portal, leaving the petitioner unaware of the proceedings. It was also contended that there were discrepancies between the taxable suppliers reported in the GSTR-3B returns and the Form 26AS under Section 203AA of the Income Tax Act, leading to a difference of Rs.77,10,000 in turnover for 2019-2020. This resulted in taxes of Rs.6,93,900 under CGST and SGST, along with interest and penalties. Further, the counsel referred to a recent judgment by the Court in a similar case (M/s. K. Balakrishnan, Balu Cables vs. O/o. the Assistant Commissioner of GST & Central Excise) where the Court remanded the matter, subject to a 25% pre-deposit of the disputed taxes. Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here The petitioner expressed willingness to pay the 25% deposit and requested one final opportunity to present their objections before the adjudicating authority.

Justice J. Sathya Narayana Prasad, considering the submissions, set aside the impugned order and issued the following directions: The petitioner is required to deposit 25% of the disputed tax within two weeks of receiving the order. On compliance with the pre-deposit, the impugned assessment order was directed to be treated as a show cause notice, and the petitioner must submit objections within four weeks, along with supporting documents. The GST department was required to consider these objections and pass orders in accordance with the law after providing a reasonable opportunity for hearing.