High Court Examines CGST Act Notification, Challenges Annual Return Time Limit Extensions for Multiple Fiscal Years Under Covid-19 Context

HC ruled on CGST Act notification challenging time limit extension for annual return examination for FYs 2017-18, 2018-19, and 2019-20. Court issued notice to respondents, recognized similar challenges in other courts, and temporarily restrained recovery proceedings against petitioner. Case adjourned for further hearing, with potential broader implications for GST assessment timelines related to Covid-19 period.

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Issues involved: Challenge to notification u/s 73(10) of CGST Act for extension of time limit for examining annual return for financial years 2017-18, 2018-19, and 2019-20.

Summary:
1. The petitioner challenged notification no. 09/2023-CT dated 31.03.2023, extending time limit u/s 73(10) of CGST Act for financial years 2017-18, 2018-19, and 2019-20. Show-cause notice issued to petitioner for financial year 2018-19 based on the notification, contending conditions precedent were not met when the notification was issued. Similar challenges in other courts noted.

2. The CGST standing counsel presented agenda extract from 49th CGST council meeting, highlighting discussion on time limit extension due to Covid-19 situation causing file pile-up. Justified issuance of show-cause notice opposing writ petition admission.

3. State GST and Finance Department standing counsel stated State GST adopted Central Govt.'s notification, making the extension applicable to the State automatically.

4. Notice returnable on 10.05.2024 issued considering the raised issue. Extra copies of writ petition to be provided to concerned counsels.

5. Petitioner participated in proceedings post show-cause notice, with a final order passed on 09.02.2024.

6. Due to ongoing examination of similar issues in various courts, the Court decided not to enforce recovery of assessed amount against petitioner until further orders.

7. Case listed for further proceedings on 10.05.2024.

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