The Madras High Court has ruled that GST notifications exceeding the GST Council's recommendations are ultra vires and has set aside portions of such notifications along with the consequential SCNs.
Madras HC: GST Notifications Without Council Recommendation Are Ultra Vires
In a landmark ruling, the Madras High Court declared that GST notifications that do not adhere to the recommendations established by the GST Council are ultra vires. Portions of such notifications have been invalidated, along with consequential show cause notices (SCNs).
The court's reasoning is grounded in the principle that legislative provisions should not exceed their delegated authority. By exceeding the recommendations of the GST Council, the notifications effectively contravene the statute.
This decision reinforces the authority of the GST Council in shaping GST regulations and clarifies the limitations of executive power in tax legislation. It establishes a precedent for legal scrutiny of administrative actions in tax matters.
Legal professionals must recognize the impact of this ruling on future GST notifications and the necessity for compliance with the procedural mandate set by the GST Council to avoid challenges based on ultra vires claims.
Citations
- Madras HC (2026) 1 GST Reporter 5