GST certificate validity questioned in tender process, authorities ordered to investigate within one month

The Gauhati HC directed authorities to investigate the validity of a GST certificate submitted by a successful bidder in a tender process. The court noted that under Central GST Act 2017, suppliers in special category states like Assam must register if turnover exceeds ten lakhs rupees. Since both parties had bid values above this threshold, valid GST certificates were mandatory. The respondent's GST certificate showed an issuance date that raised questions about its validity and whether duplicate registrations existed. The court ordered the tendering authorities to conduct an inquiry within one month and cancel the settlement if the certificate was found invalid or fabricated, directing award to the second highest bidder in such case.

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Issues Involved:
1. Validity of GST Clearance Certificate submitted by respondent No. 7.
2. Compliance with Clause 8(f) of the Tender Notice regarding GST Certificate submission.
3. Determination of whether a person can have two GST registration numbers.

Summary:

Validity of GST Clearance Certificate submitted by respondent No. 7:
The petitioner contended that respondent No. 7 submitted a fake GST Clearance Certificate, which had been canceled effective from 19.02.2021. The petitioner argued that this invalid certificate should disqualify respondent No. 7's bid, making the petitioner, as the second-highest bidder, eligible for the market settlement. The learned Standing Counsel for the Finance and Taxation Department confirmed the cancellation of GSTIN: 18AVRPB0604M1ZI for respondent No. 7, effective from 19.02.2021. However, the original bid documents showed a different GST Certificate (GSTIN: 18AVRPB0604M2ZH) issued on 04.06.2023, which was valid.

Compliance with Clause 8(f) of the Tender Notice regarding GST Certificate submission:
Clause 8(f) required submission of a "GST certificate, if applicable." The Assistant Commissioner of State Tax confirmed that the GSTIN: 18AVRPB0604M2ZH for respondent No. 7 was valid from 04.08.2023. However, the GST Certificate in the tender documents showed issuance on 04.06.2023. The court found no infirmity in the State respondents' decision to accept the GST Certificate submitted by respondent No. 7, subject to it not being fabricated.

Determination of whether a person can have two GST registration numbers:
The court noted discrepancies in the GSTIN numbers and dates related to respondent No. 7's GST Certificates. The court directed respondents No. 2 and 6 to inquire into the validity of the GST Certificate submitted by respondent No. 7. If found invalid or fabricated, the market settlement with respondent No. 7 should be canceled, and the market should be settled with the second-highest bidder. The respondents were instructed to complete the inquiry within one month and provide an opportunity for hearing to the parties involved.

Conclusion:
The court disposed of the writ petition, directing an inquiry into the validity of respondent No. 7's GST Certificate and maintaining the interim order dated 27.09.2023 until a decision is made.

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