+

Allahabad High Court: Stayed Rs 1,081 crore GST demand against Paytm

The Allahabad High Court in the case One 97 Communications Limited Versus UOI observed and has stayed the Goods and Service Tax (GST) demand of Rs. 1,081 crores against Paytm. The division bench comprising of Chief Justice Rajesh Bindal and Justice J.J. Munir stated that the amount of tax which is being due on the […]

The Allahabad High Court in the case One 97 Communications Limited Versus UOI observed and has stayed the Goods and Service Tax (GST) demand of Rs. 1,081 crores against Paytm. The division bench comprising of Chief Justice Rajesh Bindal and Justice J.J. Munir stated that the amount of tax which is being due on the transaction has already been paid, and the only dispute is whether it is to be treated as an intra-state sale or an interstate sale and the recovery of the demand raised shall remain stayed till the next date of hearing. In the present case, an issue is raised by the petitioner or assessee of weather the supply of mobile recharge coupons and Direct To Home (DTH) recharge vouchers to recipients who are being located in other states which would be an interstate or intrastate supply. Further, it has been claimed by the petitioner that the tax was being paid in the state of U.P., classifying it as an interstate supply. Thus, the state attempted for raising demand by claiming it was an intra-state supply. The bench observed that in terms of Section 19 of the Integrated Goods and Services Tax Act, 2017, if any amount of tax is wrongly paid, the same can be adjusted and in terms of Section 77 of the Central Goods and Services Tax Act, 2017, no interest is being payable for the transaction. In September 7, 2017, the petitioner made representations to the Central Board of Indirect Taxes and Customs (CBIC) which are still pending. It has been contended by the department that the representations which are being made by the petitioner should be considered and appropriate directions should be issued thereon by the Board within three months. Accordingly, the court listed the matter to be next heard on April 27, 2023. The counsels, Senior Advocate Tarun Gulati, with Advocate Nishant Mishra appeared for the appellant. The counsels, Advocates Sudarshan Singh, Anant Kumar Tiwari, Ankur Agarwal, Dhananjay Awasthi represented the respondent.

Tags: