Invoice Cancellation Alone Insufficient to Avoid GST Liability: Madras HC

Sudhan VFX Vs Superintendent (Madras High Court) In Sudhan VFX Vs Superintendent (Madras High Court), the petitioner challenged a GST recovery notice demanding Rs. 39,60,000 for IGST for services allegedly supplied between 4th and 5th July 2023. The petitioner argued that invoices were raised but the contract was not executed, no payment was received, and therefore no tax liability arose. While the transactions were recorded in GSTR-1, they were omitted in GSTR-3B. The Department issued Form GST DRC-01B, which the petitioner replied to, claiming cancellation of the invoices and non-receipt of...