Sales Turnover assumption as 110% of Purchase Turnover: Madras HC Orders Reconsideration of GST

The Madras High Court has ordered a reconsideration of GST liability in a case where the sales turnover was assumed to be 110% of the purchase turnover. The taxpayer, a wholesale dealer in raw rubber sheets, faced a discrepancy as the GST department demanded additional tax based on this assumption, rather than actual sales data. The court found that the department's method was arbitrary and directed the authorities to reassess the taxpayer's liability based on proper evidence and actual transactions instead of presumptive calculations. This decision emphasizes the need for fair tax assessment practices and adherence to actual transaction data.