An Overview

GST Litigation refers to legal disputes that arise due to non-compliance with Goods and Services Tax (GST) laws and regulations. Since the introduction of GST in India, there has been numerous disputes and litigations related to GST compliance.

There are various reasons why GST litigation occurs. Some of the common reasons are:

• Non-compliance with GST laws and regulations: Businesses may fail to comply with the GST laws and regulations, resulting in litigation. For instance, not filing GST returns on time, incorrect filing of returns, and non-payment of GST dues can lead to disputes and legal proceedings.
• Classification disputes: GST laws have specific rules for the classification of goods and services. If there is a dispute regarding the classification of goods or services, it can lead to litigation.
• Input tax credit disputes: Input tax credit (ITC) is a mechanism that allows businesses to claim credit for the GST paid on inputs used for business purposes. If there is a dispute regarding the eligibility of ITC, it can lead to litigation.
• Valuation disputes: The value of goods or services on which GST is applicable is determined as per the GST valuation rules. If there is a dispute regarding the valuation of goods or services, it can lead to litigation.