GST S. 74 Invoked despite Reversing ITC Voluntarily before Initiation of Audit: Orissa HC to address Jurisdictional Dispute

The Orissa High Court is set to address a jurisdictional dispute where GST Section 74 was invoked despite the assessee voluntarily reversing the Input Tax Credit (ITC) before the initiation of any audit. Section 74 of the GST Act deals with cases involving fraud or willful misstatement. The core issue is whether the tax authorities have the jurisdiction to invoke Section 74 when the taxpayer has already reversed the allegedly wrongly availed ITC on their own before any official audit or investigation commenced. The High Court's decision in this matter will clarify the scope and applicability of Section 74 in cases of voluntary reversal of ITC.