CA Divyajeet Singh Sabharwal
Quick Summary
A event of uncertainty and financial paralysis engulfed Guntupalli Marble and Granites (GMG) in November 2023 when the GST department froze their bank accounts. The accusation: an outstanding GST liability of Rs. 6.7 crore. With a single blow, the lifeblood of their operations sputtered, thre
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FAQ :
Guntupalli Marble's bank accounts were frozen by the GST department due to an alleged outstanding GST liability of Rs. 6.7 crore.
Guntupalli Marble proposed bifurcating their finances: one account for dedicated GST payments and another secured with a Rs. 5.7 crore bank guarantee.
The Madras High Court granted partial relief, unfreezing the IDBI Bank account for GST payments but maintaining the attachment on the Kotak Mahindra Bank account, contingent on a bank guarantee.
The court directed Guntupalli Marble to remit Rs. 50 lakh within two weeks as a gesture of commitment to clearing their dues.
The case highlights the potentially debilitating consequences of bank account attachments under the GST regime and questions the balance between tax compliance and business financial health.
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