GSTAT says GST non-payment before audit is not wilful suppression
In short
The GST Appellate Tribunal said not paying GST before an audit does not automatically mean wilful suppression under Section 74 of the CGST Act, 2017. It said the tax department needs more than just non-payment before the audit.
This can matter in GST disputes because it affects when the department can use the stricter rule against a taxpayer.
What the reporting says
The GST Appellate Tribunal held that failure to voluntarily pay GST before a departmental audit does not by itself prove wilful suppression under Section 74 of the CGST Act, 2017. The order narrows the basis for invoking the stricter provision where the tax department must show more than non-payment before audit. The ruling may affect how GST demand cases are framed and pursued in similar disputes.
Why it matters
In a GSTAT order, the tribunal said non-payment of GST before a departmental audit does not automatically establish wilful suppression for Section 74 of the CGST Act, 2017. The ruling limits the tax department’s ability to rely on non-payment alone in stricter demand proceedings and may influence how similar GST disputes are assessed.