Madras HC Allows 15% Pre-deposit for Late GST Appeal on Non-Reflection of Credit Note, ITC Reversal in GSTR-2A

The Madras High Court dismissed a plea by M/s. Tuskers Associates, a Chennai-based partnership firm, but allowing them to appeal a GST assessment order with a 15% pre-deposit of the disputed tax.

The case is related to the notice that was furnished dated August 29, 2024, by a tax official from the Velachery Assessment Circle.

The same notice asked for the tax payment, interest, and fines as the company does not report specific credit notes and the related adjustments to their tax credits in their annual tax return called GSTR-2A.

Mr. L.B. Vishnu Ram, the applicant’s representative, said that the demand made against them was wrong and not explained. As the time authorised to formally contest the same demand had passed, the firm sought the HC for assistance.

Justice Krishnan Ramasamy, who is presiding over case W.P. No. 16909 of 2025, does not consider the interference in the assessment order.

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However, he permitted the applicant to approach the appellate authority, on the condition that 15% of the disputed tax amount is deposited. This contains 10% as a statutory pre-deposit and an additional 5% to condone the delay.

The court directed that appeals submitted within 30 days of receiving the order must be considered on merit, without applying the limitation bar.