Chitrartha Gupta

The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council convened on 3 September 2025, marks a transformative milestone in India's indirect tax journey.

The second proviso to Section 16(2) states that if recipient fails to pay the supplier, the amount due for the value of supply along with the tax paid thereon within 180 days, an amount equal to the ITC availed by the recipient will be added to their output tax liability, along with interest. However, the first proviso to Rule 37[1] states that the requirement to make actual payment to the supplier within 180 days to the extent of value is deemed to be paid.

In GK Trading Company v. Union of India, the High Court of Allahabad, upon considering the scope of Section 6(2)(b) and Section 70, pointed out that the word “proceedings” used in Section 6(2)(b) is qualified by the words “subject-matter” which indicate an adjudication process or proceedings on the same cause of action and for the same dispute, which may be proceedings relating to assessment, audit, demands and recovery and offenses and penalties, etc.