GSTR 3B and GSTR 2A Mismatch: Madras HC sets aside GST Demand Order due to Lack of Reasoning, remands for Reconsideration

The Madras High Court overturned a GST demand order due to lack of reasoning and instructed reconsideration by the respondent, ensuring a personal hearing for the petitioner. The order challenged by the petitioner, represented by S. Ramanan, was criticized for arbitrariness and illegality as it disregarded the petitioner’s response concerning discrepancies between GSTR 3B and auto-populated GSTR 2A returns. The respondent, defended by C. Harsha Raj, contended that the petitioner couldn't claim Input Tax Credit under a different GST number, arguing procedural fairness was upheld. Justice Senthilkumar Ramamoorthy ruled that the order lacked sufficient rationale, merely stating the petitioner's submission was rejected without justification. The court annulled the order, mandating a fair review process, including a personal hearing, to be completed within three months.