GST vires challenge on section 16(2)(c) advanced to rule stage with interim protection against coercive recovery.

The Gujarat HC considered whether the constitutional validity of section 16(2)(c) of the State Goods and Services Tax Act, stated to be identical to the corresponding Central GST provision, required examination at the stage of issuing rule and interim relief. The court issued rule returnable and granted ad-interim protection against coercive steps during pendency of the petition, directing that the petition be heard with a connected matter.

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Issues: Whether the vires of Section 16(2)(c) of the State Goods and Services Tax Act, 2017, stated to be identical to the corresponding provision in the Central Goods and Services Tax Act, 2017, required consideration at the stage of issuance of rule and interim protection.

Outcome: Rule returnable. Ad-interim protection granted against coercive steps during the pendency of the petition. The petition was directed to be heard with a connected matter.

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