Seeking Guidance on Making GST Payments

[Ramanathan Seshan]

Dear experts,

I recently came across the case Shyama Power India Ltd. vs. State of Himachal Pradesh and Ors. (2025 (6) TMI 1571 - HIMACHAL PRADESH HIGH COURT), which discusses the concept of making GST payments 'under protest.' However, the GST Act does not explicitly provide a provision for such payments

Could anyone clarify the steps to follow when making a payment under protest under the current GST framework? Specifically:

1. Procedure: Is it advisable to submit a letter to the jurisdictional proper officer indicating that the payment is made under protest? If so, should this letter be acknowledged by the officer?

2. Acknowledgment: What if the proper officer refuses to acknowledge the letter or provide any confirmation of the payment being under protest?

3. Legal Standing: Given that the GST Act lacks a specific provision for payments under protest, how do courts view such payments? Are there precedents where payments made under protest were considered valid?

I understand that under the previous Central Excise regime, Rule 233B allowed for payments under protest. With the introduction of GST, this provision was not carried forward, and the current framework does not explicitly address this practice. 

Regards,

S Ram

AI Summary

GST payments under protest allowed despite no explicit statutory provision, courts recognize through judicial precedents A taxpayer sought guidance on making GST payments under protest, referencing a recent court case. The discussion clarified that while the GST Act lacks explicit provisions for payments under protest, courts recognize this concept through judicial precedents and principles of natural justice. Experts advised submitting written documentation to proper officers indicating protest status, obtaining acknowledgment, and noted that officers cannot refuse such payments. The practice protects taxpayers from penalties and interest while preserving their right to seek refunds if disputes are resolved favorably. Courts consistently accept this procedure despite the absence of specific statutory provisions in the GST framework.