The Supreme Court upheld the action of the Patna High Court in dismissing a writ petition filed by a taxpayer against a GST assessment order in case of M/s Vishwanath Traders vs Union of India [SLP(C) No. 15594/2023, dated 04-Aug-2023]

This is a significant development for small GST taxpayers, as it means that they will now have to be more vigilant in checking up on demand notices. They should also be aware of the potential penalties that can be imposed for late payment of taxes.

The Supreme Court's decision was based on the principle that taxpayers have a duty to regularly check the GST portal for any notices or updates. In my view, the Supreme Court's ruling is a correct legal interpretation, but it is unfortunate for small GST taxpayers.

The ruling will make it more difficult for these taxpayers to challenge demand notices, and they may have to pay taxes that they do not owe.

The government may need to amend the GST Act to allow for delayed appeals in genuine cases of SMEs and small taxpayers. This would help to ensure that these taxpayers are not unfairly penalized for administrative errors or misunderstandings.

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