Parameshwara Bricks Vs. State Tax Officer (GSTAT Hyderabad)
Summary: The Goods and Services Tax Appellate Tribunal (GSTAT), Hyderabad Division Bench, comprising Hon’ble A P Ravi, Member (Judicial), and Hon’ble Duvvuri Krishna Srinivas, Member (Technical), disposed of Appeal Nos. APL/126/HYD/2026 and APL/26/HYD/2026 by common order dated 17.08.2026. The appeals were preferred by M/s. Parameswara Bricks for the tax periods 2020–21 and 2021–22 and arose from substantially identical facts and a common question of law and fact.
The appellants were engaged in the manufacture and supply of red clay bricks and were registered under Section 10(1) of the Telangana Goods and Services Tax Act, 2017 (TSGST Act). They had opted for and availed the benefit of the composition scheme and were liable to discharge tax at the prescribed composition rate of 1% in respect of the impugned goods under the TSGST Act as well as the Central Goods and Services Tax Act, 2017 (CGST Act). The Tribunal noted that the prescribed aggregate turnover threshold applicable in the State of Telangana was ₹1.50 crore. The provisions relating to the composition scheme under Section 10 of the CGST Act are also discussed in TaxGuru’s Section 10 of CGST Act material.
During the relevant tax periods, the appellants were subjected to audit. The audit authorities compared the turnover reflected in e-way bills with the turnover declared in FORM GST CMP-08 statements and noticed a discrepancy. For financial year 2020–21, the turnover reflected in the e-way bills was ₹1,95,53,800/-, whereas the turnover declared by them in FORM GST CMP-08 was ₹1,44,86,100/-. The audit authorities therefore alleged that the appellants had exceeded the ₹1.50 crore threshold and that differential turnover of ₹50,67,700/- had not been subjected to tax at the applicable normal rate.
