GST Demand based on Mismatch in GSTR 3B return and auto-populated GSTR 2A: Madras HC directs Re-Adjudication

The Madras High Court recently ordered the re-adjudication of a Goods and Service Tax (GST) demand arising from discrepancies between the petitioner’s GSTR-3B return and the auto-populated GSTR-2A. The court's decision followed a challenge to an original order dated 23.12.2023, arguing its unreasonableness. Initiated after a show cause notice on 30.09.2023, proceedings highlighted the petitioner’s migration to a new GST number due to operational issues with the original. \r

The petitioner’s submissions were allegedly disregarded in the subsequent order issued a day after a reminder, prompting the court to intervene. Justice Senthil Kumar Ramamoorthi found the lack of reasoning in the assessing officer's decision unsustainable and set aside the order. \r

The court directed the respondent to provide a fair opportunity for the petitioner, including a personal hearing, and to issue a revised order within three months. The case underscores judicial review in tax matters and procedural fairness in administrative adjudication.