GST payers can submit intent to appeal to tribunal and halt recovery process

Mumbai, March 11, 2023

Recently, in the case of Gulf Oil Lubricants, the Bombay high court has directed the Goods and Services Tax (GST) authorities that all orders passed by them, which can be appealed at the GST tribunal level, should stipulate that the taxpayer can file a declaration of its intention to file an appeal. Once such a declaration is filed no GST recovery should be initiated.

Thus, by submitting such a declaration, the taxpayer can ensure that till such time that the GST tribunal is set up, the GST officials will not initiate recovery of the tax dues. The order adds that if the taxpayer has failed to file such a declaration within stipulated time, and tax officers wish to initiate any recovery proceedings, they must give a 15 days period to file such a declaration.

The GST council in its meeting held last month, had approved of the setting up of a GST Tribunal with benches across the country. However, as setting up of the tribunal may take several months, currently taxpayers who face a demand order have no recourse but to approach the high courts by filing a writ petition.

The Bombay high court is witnessing a large number of such writ petitions being filed. Via its order the high court has stemmed the tide of writ petitions and also allayed fears of recovery by issuing suitable directions to the revenue authorities, explained Abhishek Jain, indirect tax partner at KPMG-India. “Similar guidelines may be considered for adoption at an all-India level by the government to reduce confusion in the interim period,” added Jain.

[The Times of India]