Matter to Be Remanded Back Since 36% GST Instead of 18% Levied Because Financials Didn’t Reflect State-Wise Turnover | HC

Case Details: Tvl. Future General India Insurance Co. Ltd. v. Assistant Commissioner (State Tax) (FAC) - [2024] 159 taxmann.com 628 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Raghavan Ramabadran, Lakshmi Kumaran, & Sridhran for the Petitioner.
  • T.N.C. Kaushik, Additional Government Pleader (T) for the Respondent.

Facts of the Case

The petitioner was engaged in business of providing insurance products. It received an audit notice and submitted documents in response to said notice and asked to explain difference in turnover between P & L account and balance sheet on one hand and GSTR-9 on other. It was explained that difference arose as a result of fact that financial statements pertained to operation of entity at a Pan India level, whereas GSTR 9 return was limited to turnover in Tamil Nadu. Thereafter, an order was passed and petitioner filed writ petition against it since SGST and CGST was imposed at 18% each.

High Court Held

The Honorable High Court noted that the turnover for an entity operating in multiple States in India as reflected in financial statements and turnover attributable to its operations in Tamil Nadu would vary and bifurcation of total and Tamil Nadu turnover is only germane. The Court also noted that GST has been imposed at 36% instead of applicable rate of 18%. Therefore, it was held that the impugned assessment order was to be quashed and matter was remanded for reconsideration.