Disputes on wrongful denial of legitimate input tax credit claims under GST
GST disputes arise at every stage of the compliance lifecycle — classification, valuation, place of supply, input-tax-credit eligibility, refund rejection, demand for short payment, e-way-bill penalties, and prosecution for evasion under Section 132 of the CGST Act. The adjudicating authority issues a show-cause notice under Section 73 (non-fraud) or Section 74 (fraud, suppression or wilful misstatement), followed by a personal hearing and an adjudication order. AMLEGALS defends assessees at every stage, from the initial notice through appellate proceedings before the GST Appellate Authority, the GST Appellate Tribunal (GSTAT; bench and filing availability must be checked separately) and the High Court.
The pre-deposit regime requires 10% of the disputed tax at the first appellate level and a further 10% of the remaining disputed tax at the Tribunal, each stage capped at twenty crore rupees for CGST and twenty crore rupees for SGST (Finance (No. 2) Act 2024, effective 1 November 2024). Stay of demand may be sought at each appellate level. Detention and seizure of goods under Section 129, confiscation under Section 130, search and seizure under Section 67, and blocking of ITC under Rule 86A carry separate procedural safeguards that must be invoked promptly. AMLEGALS’s representation covers demand notices, penalty proceedings, detention and seizure, prosecution defence, and writ petitions before the High Court where statutory remedies are inadequate.
Drafting comprehensive replies to SCNs under Sections 73, 74 and 76 with supporting documentation, reconciliation statements and legal precedent.
Appearing at personal hearings before the adjudicating authority and presenting the assessee’s case on merits and limitation.
Filing appeals before the GST Appellate Authority under Section 107 and before GSTAT under Section 112 with pre-deposit compliance and stay applications.
Filing writ petitions before the High Court under Article 226 challenging arbitrary GST orders where statutory remedies are inadequate.
Challenging detention of goods and conveyances under Section 129, filing surety bonds for release, and contesting confiscation under Section 130.
Defending input tax credit entitlements, challenging Rule 86A blocking orders, and pursuing refund claims including IGST export refunds.
Under Section 73 (non-fraud), the SCN must be issued at least three months before the time limit for the adjudication order, which is three years from the due date of the annual return. Under Section 74 (fraud, suppression or wilful misstatement), the outer limit is five years from the due date of the annual return.
The first appeal under Section 107 requires a pre-deposit of 10% of the disputed tax. The appeal to GSTAT under Section 112(8) requires a further pre-deposit of 10% of the remaining disputed tax, in addition to the first-appeal deposit. Each stage is capped at twenty crore rupees each for CGST and SGST (forty crore rupees for IGST), following the Finance (No. 2) Act 2024.
Yes. The Appellate Authority and GSTAT may stay recovery of the disputed demand on application. The High Court may also grant stay in writ proceedings where the statutory remedy is inadequate or the demand is manifestly arbitrary.
Rule 86A empowers the Commissioner or an authorised officer to block the utilisation of input tax credit in the electronic credit ledger where there are reasons to believe that the credit has been fraudulently availed or is ineligible. The blocking is valid for one year and may be challenged through writ proceedings.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
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