Seven years into GST’s rollout, a surge in litigation highlights unresolved legal gaps and complex compliance burdens. Most disputes involve denial of Input Tax Credit (ITC), retrospective demands, and taxability interpretations. With GST Tribunals non-functional, cases are landing in High Courts and the Supreme Court.

BulletsIn

• Major rise in GST litigation due to unclear law, inconsistent interpretations
• Denial of ITC a top issue—often due to supplier registration or compliance lapses
• Calcutta HC ruled ITC can’t be denied to genuine buyers if suppliers default
• Retrospective supplier deregistration, GSTR-2A vs 3B mismatches driving cases
• Tribunal delay pushing minor disputes to High Courts, overburdening judiciary
• Tax on foreign employee salaries, mining royalties also under SC review
• Online gaming hit by retrospective 28% GST, thousands of crores in demand
• Supreme Court to hear gaming GST case again on 5 May 2025
• Safari Retreats case: ITC on construction unsettled by retro law amendment
• ADR mechanisms like arbitration, mediation seen as faster alternatives to court