Rs. 124 Crore GST Liability on Two-Wheeler Seats Misclassification for 6 AYs: Madras HC Orders to issue

The Madras High Court ruled that two-wheeler seats were misclassified under GST for six assessment years, leading to a liability of ₹124 crores. The court found that the taxpayer incorrectly classified the goods in a lower tax bracket. However, the court directed the tax authorities to issue separate notices allowing the taxpayer to avail of the 2024 GST Amnesty Scheme, which could potentially reduce their liability. This ruling highlights the importance of accurate classification under GST to avoid significant penalties.