GSTR-3B and GSTR-2A mismatch disputes may be remanded for fresh assessment where natural justice is not adequately observed.

Mismatches between GSTR-3B returns and auto-populated GSTR-2A can justify interference where the assessment process does not fairly address the discrepancy and natural justice concerns arise. The Madras HC noted the guidance in Circular No. 183/15/2022-GST and the taxpayer's Chartered Accountant certificate explaining the mismatch, and found the surrounding circumstances sufficient to set aside the assessment orders despite limited participation by the taxpayer. The matter was remanded for fresh consideration, with liberty to file a reply and receive a reasonable opportunity, including personal hearing, subject to deposit of 10% of the disputed tax demand within the stipulated time.

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Issues: Whether the assessment orders based on mismatch between GSTR-3B and auto-populated GSTR-2A required interference for breach of natural justice and, if so, whether the matter should be remanded subject to conditions.

Analysis: The dispute arose from alleged mismatch between the petitioner's GSTR-3B returns and the auto-populated GSTR-2A returns. Circular No. 183/15/2022-GST dated 27.12.2022 recognises the difficulties in such cases and contemplates an enquiry process. The petitioner also placed a Chartered Accountant's certificate explaining the discrepancy. Although the petitioner had not effectively responded to the notices or participated in the assessment proceedings, the surrounding circumstances justified judicial interference with the assessment orders. The Court, however, balanced this relief by imposing terms and directing further participation in the reassessment process.

Conclusion: The impugned assessment orders were quashed and the matters were remanded for fresh consideration subject to deposit of 10% of the disputed tax demand within the stipulated time, with liberty to file a reply and a right to a reasonable opportunity including personal hearing.

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