Revenue Cannot Debit From GST Ledger Once Mandatory Pre-Deposit For Appeal is Paid: Calcutta HC

The Calcutta High Court has issued a ruling that prohibits tax authorities from recovering outstanding Goods and Services Tax (GST) dues by directly debiting the taxpayer's GST electronic cash ledger once the taxpayer has already paid the mandatory pre-deposit amount required for filing an appeal against the tax demand. The court held that after the taxpayer has complied with the pre-deposit requirement, the revenue authorities cannot unilaterally take further recovery action through the GST ledger. This decision is a significant safeguard for taxpayer rights, ensuring that they are not subjected to coercive recovery measures while their appeal is pending before the appellate authorities.