GST DAILY – 396 : Order to be set aside as the reverse charge mechanism could not make the assessee liable to pay double tax: HC

Order to be set aside as the reverse charge mechanism could not make the assessee liable to pay double tax: HC

THE HON’BLE KARNATAKA HIGH COURT IN THE CASE OF  Bangalore Electrical Supply Company Ltd (BESCOM) V/s Assistant Commissioner of Central Tax, Bengaluru, decided on 3-9-2024

 👉 Issue:-

✔️ Could tax has been demanded under reverse charge mechanism If entire tax has been already discharged?

👉 The Hon’ble High Court Judgement:-

✔️ Where discharge of entire tax amount was not disputed by petitioner-assessee and reverse charge mechanism would lead to double taxation, therefore, following judgment of Zyeta Interiors Pvt. Ltd., and Anr Vs. Vice Chairman Settlement Commission and Anr, impugned order was to be quashed and matter was to be remitted back.

Section 73 and Section 74 of Central Goods and Services Tax Act, 2017