Madras High Court: Guru and Co. v. UOI and Ors. [W.P.(MD) No. 14115 of 2022]
The petitioners challenged Notifications Nos. 27/2017 and 28/2017 (CGST/IGST) and the corresponding State Notifications, contending that the Government had expanded the scope of GST by introducing the expression “enforceable right in a court of law”, which was not part of the GST Council’s recommendations.
The Madras High Court held that notifications issued under Sections 9 and 11 of the CGST Act must be on the recommendations of the GST Council, and the Government cannot add provisions beyond such recommendations. Accordingly, the expression “enforceable right in a court of law” was declared ultra vires. The Court further held that the GST Council has no power to ratify notifications after their issuance.
Key Takeaway: The Government cannot enlarge the scope of GST notifications beyond the GST Council’s recommendations, and subsequent ratification by the GST Council cannot validate such additions
GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.