GST Demand Upheld but Recovery Deferred Due to Pending Reimbursement from Government

Sri Ezhumalaiyan Construction Vs State Tax Officer Inspection -1 (Madras High Court) In Sri Ezhumalaiyan Construction vs State Tax Officer Inspection-1, the Madras High Court considered writ petitions challenging assessment orders dated 16.12.2025 for the tax periods 2022–2023 and 2023–2024, which demanded differential tax at 6% following an increase in GST rates. The petitioner had entered into agreements with certain government-related entities prior to the issuance of Notification No. 3/2022, under which the applicable GST rate for services to government entities was 12%. Subsequently, ...