The period of assessment under GST corresponds to the financial year and the limitation is calculated from the date of filing the annual return.
GST authorities (formerly Central Excise, Service Tax, and VAT) have often been biased in raising demands by invoking the extended period, even in the absence of jurisdictional ingredients, effectively bunching block 5 periods.
Recently, the Karnataka High Court put an end to this practice of bunching assessment periods. The court relied on the Madras High Court’s judgment in Titan Company Ltd., where the practice of bunching SCNs was deemed faulty under the GST laws.
It observed that the period of assessment under GST corresponds to the financial year, and the limitation is calculated from the date of filing the annual return.
This ruling is particularly beneficial for SCNs issued under Section 74, where the GST authorities bunched block periods to save limitations.
The copy of the order is as under:
