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

Payment under protest in GST: courts recognise the practice; taxpayers should submit written protest and obtain acknowledgment.
The document explains that although the GST statute lacks an express provision for a payment made "under protest," courts and tribunals recognise the practice to avoid adverse consequences and preserve refund claims. Taxpayers are advised to submit a written, dated protest to the proper officer and obtain a signed, stamped acknowledgment noting the officer's name and designation; if acknowledgment is refused, send the protest by Registered Post A.D. or rely on filing an appeal, which has been held to constitute protest. Contributors also reference the earlier Central Excise rule and saving provisions as supporting context.