Unaware of GST Proceedings in GSTR 3B and GSTR 2A Mismatch: Madras HC sets aside Order, remands for Reconsideration

The Madras High Court has overturned a GST-related order due to a discrepancy between GSTR 3B filings and the auto-populated GSTR 2A, highlighting a breach of natural justice principles. M/s. Mohan Enterprises, the petitioner, challenged an order from March 22, 2024, for the assessment year 2018-19, arguing that their business had ceased, and they were unaware of the show cause notice and order uploaded on the GST portal. Counsel R. Hemalatha stated that the tax demand was based on a mismatch between GSTR 3B and GSTR 2A, and the petitioner, unaware of the proceedings, could not respond or attend a personal hearing. She proposed a 10% pre-deposit to contest the tax demand. \r

The respondent, represented by Sai Srujan Tayi, claimed compliance with natural justice, citing notices and a show cause notice sent before the order. Justice Senthilkumar Ramamoorthy, reviewing the case, noted the petitioner's lack of response and hearing attendance but acknowledged their unawareness due to business closure. The court set aside the order, requiring a 10% pre-deposit within two weeks, allowing the petitioner to reply to the show cause notice. The respondent must then offer a personal hearing and issue a new order within three months.