Higher GST rate dispute remanded for fresh consideration after the assessee was allowed to file supporting completion documents.

Applicability of the higher GST rate turned on whether the work was completed before the rate-changing notification and whether the later invoice was only for regularisation. The Madras HC held that the assessee should be given an opportunity to produce supporting documents to establish that factual claim, and directed fresh consideration of defect No. 5. The demand on that ground was quashed for reconsideration, and the question of penalty was left open for challenge after the final order.

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Issues: Whether the demand sustained on defect No. 5 relating to application of the higher GST rate could be upheld, and whether the matter required fresh consideration on production of supporting documents.

Analysis: The impugned order was under challenge only to the extent of defect No. 5. The dispute turned on whether the work had been completed before the rate-changing notification and whether the invoice raised later was only for regularisation. The Court accepted that the petitioner should be given an opportunity to place the necessary documents to establish the factual claim and directed reconsideration of the matter. It also left the question of penalty open for challenge after final orders.

Conclusion: The demand relating to defect No. 5 was quashed for fresh consideration, and the respondent was directed to re-do the exercise after giving the petitioner an opportunity to produce supporting documents.

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