GST Dept has to Verify Correctness of Returns and Particulars before Initiating Action u/s 73: Madras HC

The Madras High Court has ruled that the GST department must verify the correctness of returns and particulars before initiating any action under Section 73 of the GST Act. This judgment arose from a case where the GST authorities were found to have acted without proper verification of the submitted returns. The court emphasized that the GST department's responsibility includes ensuring the accuracy of information before proceeding with actions like show-cause notices or demand notices. This ruling reinforces the procedural safeguards meant to protect taxpayers from arbitrary or incorrect actions by tax authorities. It highlights the importance of accuracy and due diligence in the administration of GST, aiming to prevent unnecessary disputes and ensure fair treatment of taxpayers.