Court stays CGST & SGST recovery due to IGST payment is already made.

Introduction

The order involves a petitioner, a private limited company engaged in manpower services, challenging a demand notice issued by the GST authorities for the payment of Central GST and State GST. The petitioner claims to have already paid Integrated GST (IGST) on the same transactions.

Key Points from the Court Order

The court, after hearing both parties and perusing the records, made the following key observations:

• IGST Payment: The petitioner had indeed paid IGST on the relevant transactions.
• No Revenue Loss: There was no evidence to suggest that the government suffered any revenue loss due to the petitioner's IGST payment.
• Disputed Issues: The main points of contention were the apportionment of IGST between the states, the imposition of penalty, and the charging of interest.
• Appellate Authority: The court directed the petitioner to appeal to the appellate authority under Section 107 of the GST Act.

Analysis of the Court's Decision

The court's decision highlights the complexities involved in GST disputes, especially when dealing with inter-state supplies and the apportionment of taxes. The court's intervention was primarily to protect the petitioner from double taxation, as IGST had already been paid.

The directive to approach the appellate authority is in line with the statutory framework for resolving GST disputes. The appellate authority is equipped to delve into the specific details of the case, including the nature of the supply (intra-state or inter-state), the applicability of input tax credit (ITC), and the justification for the imposition of penalty and interest.

GST Case Law Primeone Workforce Pvt. Ltd. Versus State of UP

Citation- 2024 TAXONATION 1713 (ALLAHABAD)

CLICK HERE TO READ FULL CASE LAW 

OR 

SUBSCRIBE GST E-LIBRARY (INDIA'S HIGHEST GST CASE LAW DATA)

FOR MORE UPDATE ON GST/ IT JOIN OUR FREE WHATSAPP GROUP BY CLICKING ON THIS LINK https://chat.whatsapp.com/C8VB6F6VHme3A061UDQKhj