What is GST Adjudication and Why Timeliness Matters
Adjudication under GST refers to the process where tax officers decide disputes—such as show cause notices, demand orders, and penalties. But here’s the problem: delays in adjudication can freeze businesses and create financial uncertainty.
As per the CBIC and various High Courts, authorities must conclude adjudication with due expedition—meaning quickly and fairly. Yet, many taxpayers face prolonged waits.
Legal Backing for Timely GST Adjudication
Authorities are not just morally, but legally, bound to act quickly:
- Section 73(10), CGST Act: Mandates adjudication within 3 years from annual return date.
- Section 74(10), CGST Act: Allows 5 years in case of fraud/suppression.
- Supreme Court in M/s Bhushan Power (2022): Reinforced the need for time-bound completion of adjudication.
- UOI (2024): Held that inordinate delay violates Article 14 and principles of natural justice.
Why Timely Adjudication is Critical for Businesses
✅ Closes uncertainty around tax liability
✅ Avoids harassment through repetitive summons
✅ Enables planning for appeals or settlement
✅ Improves trust in tax administration
✅ Reduces litigation backlog
What CBIC Officers Should Follow
As per CBIC guidelines and DGGI advisory, officers must:
- Avoid issuing vague show cause notices
- Mention clear timelines in notices
- Not delay adjudication beyond statutory deadlines
- Update the status on CBIC-GST Portal regularly
- Offer proper hearing before passing orders
Expert Insight
“In my experience, timely adjudication helps both taxpayers and the department. Delay increases interest, litigation costs, and erodes trust in the system.”
— CA Niranjan R., GST Consultant, Bengaluru
How to Track Your GST Adjudication Status
- Log in to https://www.gst.gov.in/
- Go to “Services > User Services > View Notices and Orders”
- Check for Order Number, Date, Status
- For offline matters, follow up via RTI or grievance redressal at https://pgportal.gov.in
Action Plan if Adjudication is Delayed
| Step | Action |
|---|---|
| 1 | File a reminder letter with the jurisdictional officer |
| 2 | Raise grievance on CPGRAMS or GST Portal |
| 3 | Escalate to Principal Commissioner or Zonal CGST Office |
| 4 | File a writ petition before the High Court if delay is unjustified |
Frequently Asked Questions (FAQs)
Q1. Is there a deadline for passing a GST adjudication order?
Yes. 3 years under Section 73 and 5 years under Section 74 from the due date of annual return.
Q2. What if the officer doesn’t pass an order on time?
You can approach the High Court for relief due to delay beyond the statutory period.
Q3. Can interest and penalty be imposed after the limitation period?
No. Once the limitation period lapses, no demand order can be passed lawfully.
Summary
GST adjudication must be concluded within statutory timelines—3 years or 5 years, depending on the case. Delays violate legal principles and hurt taxpayers. Courts and CBIC emphasize swift disposal to uphold justice and reduce litigation.