Composite GST assessment covering multiple tax periods ruled invalid under ss. 73-74; orders set aside, fresh year-wise proceedings allowed

A composite GST assessment order covering more than one tax period was challenged as contrary to ss. 73 and 74 of the GST Act, 2017. Relying on its prior Division Bench ruling, the HC held that a single show-cause notice or composite assessment order cannot validly be issued for multiple tax periods (either more than one month before the annual return due date, or more than one year after the annual return due date). Consequently, the HC set aside both the assessment order and the appellate order, leaving other grounds undecided, and permitted the tax authorities to initiate fresh proceedings separately for each assessment year.

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A registered company challenged an assessment order dated 29.11.2022 covering July 2017 to January 2022 and the appellate order dated 23.01.2025 dismissing its appeal. The principal contention was that issuing a "single assessment order" for more than one financial year is "violative of the provisions of Section 73 and Section 74 of the G.S.T. Act, 2017." Relying on a prior Division Bench ruling, the Court reiterated that "a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month... or for more than one year if the due date for filing of annual return has been reached." Since the petitioner pressed only this primary ground, the matter was disposed of on that basis, with other grounds left open. The Court set aside both the assessment and appellate orders, permitting the authorities to initiate fresh proceedings "for each assessment year separately," and directed exclusion of the period from the impugned order to receipt of the present order for limitation purposes. No costs were awarded.

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