Natural justice in GSTR-3B and GSTR-2A mismatch cases led to quashing, remand, and conditional hearing safeguards.

Assessment orders based on a mismatch between GSTR-3B returns and auto-populated GSTR-2A data were interfered with for breach of natural justice. The court noted the administrative difficulty in mismatch cases, referred to the GST circular governing the procedure, and accepted the Chartered Accountant's certificate explaining the disparity. Although the taxpayer had not replied to notices or participated in the original proceedings, the circumstances justified quashing the orders and remanding the matters for fresh consideration. The remand was made conditional on a 10% deposit of the disputed tax demand for each assessment period, filing of a reply, and grant of a reasonable opportunity, including personal hearing.

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Issues: Whether the assessment orders arising from mismatch between GSTR-3B and GSTR-2A were liable to be interfered with for breach of natural justice and, if so, whether the matters should be remanded for fresh consideration with conditions.

Analysis: The liability arose from an alleged mismatch between the taxpayer's GSTR-3B returns and the auto-populated GSTR-2A data. The order notes the administrative difficulties in such mismatch cases and refers to Circular No. 183/15/2022-GST dated 27.12.2022, which was issued to guide the procedure in such matters. The record also contained a Chartered Accountant's certificate explaining the disparity. Although the taxpayer had not responded to the notices or participated in the original assessment proceedings, the surrounding circumstances were found sufficient to warrant interference, but only on terms requiring a partial deposit and permitting a reply to the show cause notice.

Conclusion: The assessment orders were quashed and the matters were remanded for reconsideration after the taxpayer remitted 10% of the disputed tax demand for each assessment period, filed a reply, and was afforded a reasonable opportunity including personal hearing.

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