High Court Petition Filed by Vaish Associates Challenging Imposed ₹5.8 Lakh Goods and Services Tax (GST)
In a significant development, Vaish Associates has moved the Delhi High Court, challenging a GST demand of ₹5.89 lakh. The case is being heard by Justice Prathiba M. Singh, with Justice Shail Jain also presiding.
The dispute concerns the period from January 1, 2021, to September 10, 2023, and relates to DRC-03 submissions. Vaish Associates contests the raised GST demand and has engaged in litigation against the Commissioner of Delhi GST to clarify the applicable tax rates under GST during that timeframe.
The GST demand was raised due to discrepancies between Vaish Associates' GSTR-9 and GSTR-9C filings. GSTR-9, the annual GST return that consolidates all monthly/quarterly filings, shows the overall tax liability and payments. On the other hand, GSTR-9C is a reconciliation statement comparing GSTR-9 with the audited financials, ensuring accuracy and compliance, and highlighting mismatches to prevent tax disputes.
In court, Senior Advocate Kavita Jha submitted that the matter was only a reconciliation issue. The tax amount, together with interest, had already been paid by Vaish Associates in 2021 through DRC-03 filings, a GST form used for voluntary payment of tax, interest, or penalty to settle liabilities or discrepancies.
Initially, the court asked Vaish Associates why they did not respond to a show cause notice issued to them. However, the court has since observed that the reconciliation and payment records (GSTR-9, GSTR-9C, and DRC-03) are already on record. The court has also directed GST authorities to verify if the payment made by Vaish Associates has been correctly recorded.
If the GST authorities confirm that the payment has been made, the impugned order can be set aside, potentially resolving the dispute in favour of Vaish Associates. The case has been listed for further hearing on September 10.
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