Goods and Services Tax Appellate Tribunal issues key tax rulings

The Goods and Services Tax Appellate Tribunal (GSTAT) has issued two significant rulings regarding tax compliance and procedural requirements in India.

In Hyderabad, the GSTAT Hyderabad Division Bench ruled in favor of M/s. Parameswara Bricks regarding the composition scheme. The manufacturer of red clay bricks had been accused by audit authorities of exceeding the ₹1.50 crore turnover threshold for the Telangana Goods and Services Tax Act, 2017, after discrepancies were found between e-way bills and declared statements. The tribunal addressed the application of the composition scheme following the turnover breach.

In a separate ruling, the GSTAT Kolkata Bench determined that the ‘Reasons, if any’ field in Column 8 of Form GST DRC-03 is not a mandatory requirement for a valid reversal of Input Tax Credit (ITC). The case involved D. R. Steel Construction Co. Pvt. Ltd., where revenue authorities argued that excess ITC reversals were not properly documented because the specific column lacked explanatory text. The tribunal observed that the field is explicitly labeled ‘reasons, if any’, meaning it is not a mandatory requirement for taxpayers.