Delhi High Court stays Rs 10.35 crore GST demand against CCI

Delhi High Court stays Rs 10.35 crore GST demand against CCI

The Delhi High Court has provided interim relief to the Competition Commission of India (CCI) by staying a Rs 10.35 crore GST demand raised by the Central GST department.

A bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta issued the stay order on May 21 after the Competition Commission of India (CCI) filed a petition challenging the Central GST department’s demand of Rs 10.35 crore, issued on January 16, 2025.

In its plea, the CCI argued that, as a statutory body created under the Competition Act, 2002, it does not engage in any commercial or business activities liable for GST.

The Commission also referred to a precedent in Central Electricity Regulatory Commission v. Directorate General of GST Intelligence, where the court struck down a similar tax demand.

After hearing arguments from both sides, the court prohibited the GST authorities from taking any coercive action against the CCI until it delivers a final verdict.

The bench directed the GST department to submit its response within six weeks and allowed the CCI four additional weeks to file a rejoinder.

The court has scheduled a preliminary hearing before the Joint Registrar for July 29, 2025, and will revisit the case before the bench on September 8, 2025.