Several businesses received GST notices in December 2023 and January 2024 due to deadline extensions, leading to petitions in high courts challenging the legality of the notices. Some high courts have issued notices to the Centre, urging it not to take coercive action against the taxpayers. Approximately 800 taxpayers have lodged petitions across the country. The deadline for issuing notices for the fiscal years 2018-19 and 2019-20 was extended, resulting in a surge in notices to taxpayers. High Courts in Guwahati, Jammu and Kashmir, Ladakh, Rajasthan, and Madhya Pradesh have halted tax demands. The industry is observing whether the courts prioritize flexibility or stricter enforcement of force majeure conditions. Revenue authorities have defended their actions, stating that all extensions were approved by the GST Council. However, some experts argue that any notifications issued beyond the statutory framework will likely face legal scrutiny. It is crucial to monitor the progress of these cases to assess the legitimacy of demand orders issued between January and August and to understand the interpretation of ‘force majeure’ in these instances.
Source A2ztaxcorp
