The Andhra Pradesh High Court ruled that a Goods and Services Tax (GST) demand that spans multiple fiscal years is invalid. The court directed the authorities to issue new assessment orders for each year individually.
Akshaya Engineering and Project Services filed the petition contesting the single GST demand order issued for multiple assessment years. The department has given a single demand order, which includes the period from 2017-18 to 2021-22, that is, for 5 years.
The applicant’s representative, Adv. S. Bala Mohan Ranga raised various grounds; however, he has outlined the issue of a single GST demand order for 5 Assessment years. He claimed that a single order of assessment issued for more than one fiscal year shall breach the norms of Section 73 and Section 74 of the GST Act, 2017. The applicant sought to quash the assessment proceedings.
The court observed the decision of division bench of this court which stated that “a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if assessment is taken up before due date for filing of annual return or for more than one year if due date for filing of annual return has been reached.”
Despite raising various grounds by the applicant, the Court observed that the composite demand was the main issue for the applicant. Thus, the bench of Justice Raghunandan Rao determined to dispose of the case on the same basis.
Also Read: Andhra Pradesh HC Sets Aside Composite GST Assessment Order Covering Multiple Years
The Order was quashed by the court on 13.04.2023, and the case was remanded back to the GST department for the issuance of fresh orders separately. The bench overturned the auction of the applicant’s immovable property.
The HC said that the period from the date of issuance of the impugned order of assessment till the date of receipt of this order would not be included for limitation. Subsequently, the case was disposed of.
| Case Title | M/s. Akshaya Engineering And Project Services Vs. State Of Andhra Pradesh |
| Case No. | Writ Petition No: 9372 of 2026 |
| For Petitioner | S Bala Mohan Ranga |
| For Respondent | GP for Commercial Tax |
| Andhra Pradesh High Court | Read Order |
