The issue of GST consolidated SCN has come under scrutiny as the Bombay High Court referred the matter to a larger bench. The core question is whether tax authorities can issue a single show-cause notice covering multiple financial years under the CGST Act, 2017.
What is the GST Consolidated SCN Issue?
The GST consolidated SCN controversy arises from notices issued by the department clubbing several years into one proceeding.
Petitioners argue:
- GST is year-wise assessment based
- Limitation under Sections 73 & 74 is strict
- A GST consolidated SCN violates statutory timelines
GST Consolidated SCN vs Year-wise Assessment
The GST consolidated SCN debate focuses on:
- Whether multiple years can be combined
- Whether limitation applies per year
- Whether such notices are legally valid
Several High Courts (Goa, Nagpur benches) have ruled against GST consolidated SCN, while others (Delhi, Allahabad) have allowed it.
Bombay High Court on GST Consolidated SCN
The Bombay High Court observed:
- Sections 73 & 74 form a complete code
- No clear bar on issuing a GST consolidated SCN
- Restricting it may amount to rewriting the law
Due to conflicting rulings, the Court referred the matter to a larger bench.
Why GST Consolidated SCN Matters?
The GST consolidated SCN issue is critical because:
- Affects thousands of tax notices
- Impacts limitation and compliance
- Crucial for fraud & ITC-related cases
- Determines scope of GST department powers
Conclusion
The GST consolidated SCN issue is now set for authoritative clarification. The larger bench decision will determine whether tax authorities can legally club multiple financial years into one notice or must follow strict year-wise proceedings.
