GST UPDATE

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The Gauhati High Court has quashed Notification No. 56/2023-CT, which extended time limits for issuing notices and passing orders under Section 73 of the CGST Act beyond the COVID-19 period.

Key Grounds:

?Lack of GST Council Recommendation: The Court emphasized that the extension was not recommended by the GST Council, as required under the GST framework (Articles 246A and 279A). Although the Court's stance raises academic debate, the Council may rectify this by ratifying the extension in future meetings.

?Absence of Force Majeure Consideration : The Court held that the notification was issued without properly considering whether force majeure conditions existed beyond the pandemic. Since the GST Council did not review or recommend an extension based on force majeure, the notification was legally flawed.

?The ruling leaves room for future arguments that, while the pandemic has subsided, lost time due to force majeure might still justify extensions if properly ratified by the GST Council.

CA. Sharma Praveen

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