GST pre-deposit must be computed only on disputed tax, not on admitted liability: Calcutta HC directs fresh decision on pre-deposit

This Taxscan report covers a Calcutta High Court ruling that a taxpayer’s pre-deposit for challenging GST demands must be calculated only on the quantum genuinely in dispute and not on sums already admitted by the assessee. The court found that treating admitted liability as part of the contested amount effectively penalises the taxpayer and defeats the object of the appellate pre-deposit regime. The bench directed the authority to revisit the pre-deposit computation and issue a fresh decision consistent with the principle that admitted amounts cannot be treated as disputed tax requiring security.