Relief to Ford India: Madras HC sets aside Unreasoned GST Demand Order Confirming Liability in GSTR 9 and GSTR 2A Mismatch

The Madras High Court set aside an unreasoned GST order confirming Ford India’s tax liability due to a mismatch between Table 8A data of GSTR-9 and GSTR-2A, granting relief to the company. The assessment order dated March 18, 2024, was challenged for being unreasoned. Ford India had responded to two show cause notices regarding the 2018-19 assessment period. While one notice led to dropping proceedings, the other resulted in the contested order. Ford India clarified that their input tax credit was lower than the amount in GSTR-2A, which is dynamic and reflects ongoing data uploads. The proceedings were based on a comparison of Table 8A data with GSTR-2A. Citing a CBIC press release acknowledging potential mismatches, the court remanded the matter for reconsideration, directing a reasonable opportunity for Ford India, including a personal hearing, and to issue a fresh order within three months.