Personal Hearing Lapse in S. 74 GST Demand on B2C Sales Entry Error in GSTR 1: Madras HC quashes Order

The Madras High Court has quashed a GST demand order issued under Section 74, triggered by a mistaken entry of B2C sales in GSTR 1. The court found that the order lacked a personal hearing and remanded the matter on a 10% pre-deposit requirement at the request of the department’s counsel. The case highlights the importance of procedural fairness and the need for proper hearings in GST assessment proceedings. The court’s decision underscores the necessity for tax authorities to adhere to due process and ensure that taxpayers are given a fair opportunity to present their case.