Pre-GST Period Turnover Mismatch in Form 26AS and GST Returns: Madras HC orders readjudication on 10% Pre-deposit

The Madras High Court recently set aside a GST demand order issued to Haarine Associates, citing a turnover mismatch between Form 26AS and GST Returns for the period April 1, 2017 to June 30, 2017, which fell within the pre-GST period. The court acknowledged that this discrepancy was natural due to the transitional phase from pre-GST to GST. Haarine Associates challenged the order on grounds of natural justice and lack of consideration. The court observed that the original order did not address the pre-GST period issue nor allow for a personal hearing, necessitating its annulment. It ordered Haarine Associates to deposit 10% of the disputed tax demand within two weeks and instructed the tax authority to provide a fresh hearing and issue a new order within three months of receipt of the deposit and petitioner's reply. Additionally, the court lifted the bank attachment related to the disputed tax.