S.81 CGST Act Can't Be Invoked To Declare Transfer Of Property Void Without Determining 'Nature Of Transaction' As Being Sham: Andhra Pradesh HC

The Andhra Pradesh High Court ruled that a property transfer intended to evade tax liabilities constitutes a sham transaction under Section 81 of the CGST Act. The case involved a property transfer between related parties, which the tax authorities challenged as an attempt to evade GST liabilities. The court held that the transfer lacked genuine commercial substance and was designed solely to avoid tax obligations. The ruling emphasized that transactions intended to evade tax liabilities are invalid and can be disregarded by tax authorities. This decision aims to prevent tax evasion through sham transactions and ensure that taxpayers adhere to the spirit of the law. The ruling reinforces the importance of genuine commercial intent in property transfers and provides guidance on identifying and addressing sham transactions.