Litigations Aspects in GST - LAW, Compliance & Strategy

To understand how GST litigation actually arises, how to handle departmental actions, and how to protect the taxpayer at every stage using law, procedure, and judicial principles.

CONTENTS / FLOW OF SESSION

A. COMPLIANCE LEADING TO LITIGATIONS

1.Procedural Non-Compliance

• Delay in filing returns (GSTR-1, GSTR-3B, GSTR-9/9C)
• Minor clerical or reporting errors treated as tax evasion
• Non-reply / delayed reply to departmental notices due to portal issues

2.Return Mismatch Issues

• GSTR-3B vs GSTR-1 mismatches
• GSTR-2A / 2B vs books mismatch
• Amendments made but not auto-reflected

3.Input Tax Credit Compliance Disputes

• ITC availed but supplier failed to file returns
• Late filing by supplier leading to ITC denial
• ITC reversal under Rule 37 due to delayed payment

4.Interpretation-Based Compliance

• Classification disputes
• Rate of tax disputes
• Exemption / notification interpretation issues

5.Timelines & Limitation Errors

• Late filing of refund applications
• Delay in filing appeal
• Portal technical glitches affecting timelines

6.Documentation-Related Compliance

• Minor defects in tax invoices
• E-way bill errors without intent to evade
• Transport documentation lapses

7.Auto-Generated Notices

• System-generated DRC-01A / intimations
• Bulk notices without application of mind

B. LITIGATIONS ARISING OTHER THAN COMPLIANCE ISSUES

1.Jurisdictional Errors by Department

• Notice issued by improper officer
• Wrong section invoked (73 instead of 74 or vice versa)
• Cross-empowerment disputes

2.Violation of Natural Justice

• No opportunity of personal hearing
• Orders passed without considering replies
• Non-speaking or cryptic orders

3.Mechanical & Pre-Determined SCNs

• Cut-paste notices
• Allegations without evidence
• Presumption of fraud

4.Retrospective Actions

• Retrospective cancellation of registration
• Retrospective ITC denial
• Retrospective application of amended rules

5.Search, Seizure & Investigation Actions

• Illegal search authorizations
• Coercive statements
• Blocking of ITC under Rule 86A without reasons

6.Recovery Without Adjudication

• Bank account attachment without final order
• Recovery initiated during appeal period
• Recovery without service of order

7.Portal & System Failures

• Inability to file forms due to portal issues
• Technical errors causing non-compliance
• No mechanism to correct genuine mistakes

8.Non-Availability of Appellate Remedies

• GST Tribunal not functional

SESSION TAKEAWAYS

• Clear understanding of GST litigation ecosystem
• Practical mindset shift from compliance to defence