Seeking Guidance on Making GST Payments "Under Protest"

Dear Experts,

I recently came across the case Shyama Power India Ltd. vs. State of Himachal Pradesh and Ors. (CWP 6990 of 2025), 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 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

Replies (1)
  1. Procedure: Yes. It is advisable to submit a letter to the proper officer indicating that the payment is made under protest.
  2. Acknowledgment: the taxpayer should maintain a record of the payment and the letter submitted as acknowledgement in future.
  3. Legal standing: Although the GST act does not have a specific provision for payments under protest, courts have considered such payments in various cases.

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