Inability to Participate in Proceedings on GSTR 3B and Auto-populated 2A Mismatch: Madras HC sets aside GST Order on 10% Pre-deposit

The Madras High Court recently set aside GST orders for assessment periods 2018-19 and 2019-20 concerning M/s. Thiashola Plantation P. Ltd. The court ruled in favor of the petitioner due to procedural lapses, specifically the petitioner's inability to participate in proceedings stemming from discrepancies between GSTR 3B returns and auto-populated GSTR 2A. The petitioner argued they were not properly notified via registered post or email about show cause notices and orders, which were only uploaded on the GST portal. The court accepted the petitioner's claim of ignorance of proceedings and directed the respondent to allow a fresh opportunity for the petitioner to respond, including a personal hearing. The orders were set aside conditional upon the petitioner remitting 10% of the disputed tax demand for each assessment period within three weeks. This decision emphasizes procedural fairness and the need for proper notification in tax assessments.