‘Bunching’ Impermissible under GST Act: Madras HC Says SCN can be Issued based on Monthly Returns if Annual Filing Pending

The Madras High Court ruled that "bunching is impermissible under the GST Act," stating that "SCN (Show Cause Notice) can be issued based on monthly returns if annual filing is pending." The court clarified that tax authorities are not required to wait for the annual GST return (GSTR-9) to be filed before issuing show cause notices based on discrepancies found in monthly returns (GSTR-3B). Bunching multiple financial years into a single notice or waiting for annual returns is not a prerequisite, streamlining the tax assessment process and ensuring timely action on non-compliance.