GST assessment orders must be year-wise; a single composite order for multiple financial years was set aside.

A single composite GST assessment order covering more than one financial year is impermissible where the assessment period must be treated year-wise after the annual return due date. The Andhra Pradesh High Court noted the earlier Division Bench view that a single show-cause notice or composite assessment order cannot cover multiple tax periods, and that the permissible unit of assessment depends on the relevant return cycle. On that basis, the impugned order was set aside, with liberty to proceed afresh separately for each assessment year; the remaining grounds were left open.

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Issues: Whether a single composite assessment order covering more than one financial year under the GST regime is permissible.

Analysis: The petitioner challenged the assessment order on the ground that one order had been passed for multiple financial years. The Court noted that a Division Bench had already held that a single show-cause notice or a single composite assessment order cannot be issued for more than one tax period, and that the permissible unit of assessment depends on whether the annual return due date has been reached. As the petitioner pressed only this principal ground, the writ petition was disposed of on that basis, with the other grounds left open.

Conclusion: A single composite assessment order covering multiple financial years was impermissible, and the impugned order was set aside with liberty to proceed afresh for each assessment year separately.

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