Gujarat HC Quashes GST Demand Based Only on E-way Bill & GSTR-9 Turnover Mismatch

MC Bauchemie India Pvt Ltd & Anr. Vs Union Of India & Ors. (Gujarat High Court)   The Gujarat High Court, in a significant ruling delivered on 10 July 2025, quashed GST proceedings initiated solely on the basis of a mismatch between turnover declared in E-way bills and GSTR-9 returns. The Court emphasized that without allegations of fraud, willful misstatement, or suppression, the tax authorities could not assume jurisdiction under Section 73 of the GST Act, 2017. Background of the Case MC Bauchemie India Pvt. Ltd., a manufacturer of construction chemicals, filed its GST returns for F...