Tax Proposal confirmed on GSTR 3B and GSTR 2A Mismatch: Madras HC directs Re-adjudication on 10% Pre-deposit

In a recent ruling, the Madras High Court overturned a GST order confirming a tax proposal due to discrepancies between GSTR-3B returns and auto-populated GSTR-2A. Tvl. Uniform Collections challenged the order, citing lack of communication and participation opportunities. The court directed re-adjudication, contingent on remitting 10% of the disputed tax. The petitioner agreed to remit the amount for a chance to contest on merits. The government argued compliance with natural justice, noting notices issued and the petitioner's non-response. Justice Senthilkumar Ramamoorthy emphasized fairness, setting aside the order for reconsideration, requiring remittance within two weeks and a fresh decision within three months.