JSW Steel Limited Vs Directorate General Of GST Intelligence & Ors. (Delhi High Court)
Delhi HC issued notice in circular mandating CA certification for proving credit reversal for post sales discount
Summary: In the case of M/s. JSW Steel Limited v. DGGI and Ors., the Delhi High Court issued a notice regarding the challenge to Circular No. 212/6/2024-GST, which mandates that suppliers obtain a Chartered Accountant (CA) or Chartered Management Accountant (CMA) certificate to prove credit reversal for post-sales discounts. JSW Steel filed a writ petition contesting the requirement to provide a certificate for every credit note and transaction related to discounts. The court found merit in the petitioner’s concerns, noting that the current lack of verification mechanisms on the GST portal makes compliance burdensome. It directed the Revenue Department to provide clarification during ongoing proceedings concerning the Circular and the relevant provisions of the Central Goods and Services Tax Act, particularly Section 15(3)(b). The court acknowledged that the requirement could impose significant challenges on suppliers, especially regarding past transactions. As a result, while the proceedings related to the Show Cause Notice will continue, the court has paused any ruling on discount-related issues and has given JSW Steel 30 days to respond to the notice. The matter is set for further hearing on January 9, 2025.
