Inability to Participate in Personal Hearing on GSTR 2A and GSTR 4 Disparity: Madras HC sets aside GST Order on 10% Pre-deposit

The Madras High Court overturned a GST proposal requiring Neelan Pharmacy and General to pre-deposit 10% of disputed taxes due to their inability to attend a hearing regarding discrepancies between GSTR 2A and GSTR 4 returns. Neelan Pharmacy, a retail trader under GST composition, contested an order from the Deputy State Tax Officer, claiming inadequate opportunity to dispute the tax demand based on return scrutiny. \r

The petitioner cited closure due to nearby metro construction for missing the hearing and agreed to the pre-deposit condition for remand. The court found procedural fairness lacking, noting the petitioner's failure to submit complete financial documents despite responses. It annulled the order and mandated reevaluation, contingent on the pre-deposit within two weeks and submission of necessary documents. \r

The respondent was directed to provide a new hearing and issue a revised decision within three months. This case underscores procedural rigor in tax disputes under GST.