The Allahabad High Court ruled that disputes arising from contractual obligations linked to GST compliance are arbitrable and do not fall under sovereign taxation functions. The court distinguished between challenges to the validity of tax levies and contractual disputes, allowing arbitration to proceed. The decision clarifies that GST compliance issues can be raised as defenses in arbitration proceedings.
The Court held that such disputes are arbitrable and do not fall under sovereign taxation functions.
No, the Court ruled that disputes over GST compliance are not sovereign functions and can be resolved through arbitration.
Rs 46,73,814 remained unpaid after the settlement letter.
The arbitration notice was sent on 6 January 2025.
The Court distinguished between challenges to the validity of tax levies and contractual disputes, citing the Supreme Court decision in Vidya Drolia vs. Durga Trading Corporation.
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BW Auto World · 5 days ago
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The Hindu · 19 days ago
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DevDiscourse · about 1 month ago
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India’s GST law imposes a 5% tax on ride‑hailing services, but the SaaS model used by aggregators creates ambiguity under Section 9(5) of the CGST Act. IAMAI has urged a review of the tax’s applicability, while Karnataka has exempted subscription‑based platforms such as Namma Yatri. The dispute raises uncertainty for aggregators, potentially leading to unexpected liabilities and affecting driver earnings and consumer affordability.
