No Penalty when Tax and Interest paid before GST SCN: Telangana HC

Ravs Power lnfra Private Limited Vs Superintendent of Central Tax (Telangana High Court)

1. Introduction

The Telangana High Court delivered a significant judgment reinforcing voluntary compliance under the GST regime. The Court held that when a taxpayer pays the entire tax liability along with applicable interest before issuance of a Show Cause Notice (SCN), the department cannot initiate proceedings under Section 73 or 74 of the CGST Act for the same demand.

2. Background of the Case

The petitioner, engaged in generating solar power, was subjected to a GS

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