2020 (10) TMI 466 - HC - GST

Levy of GST - Henna leaves and powder - will attract GST at the rate of 5% or 18%? - It is argued that now the respondents without following the procedure as laid under Section 73 of the Central Goods and Services Tax Act 2017 has straight away started proceedings against the petitioner under Section 132 of the CGST Act which are illegal - HELD THAT - Issue notice. Issue notice of stay application also returnable in four weeks.

Summary

The Rajasthan High Court ordered a stay on coercive action against a petitioner regarding GST rate clarification for Henna leaves and powder, deposited at 5% but pressured to pay at 18%. Proceedings under Section 132 of CGST Act deemed illegal without following Section 73 procedure. Stay application notice issued, returnable in four weeks.