Circular 171/03/2022-GST

State Registration Is No Shield: Delhi High Court Applies Armour Security to Uphold DGGI's Cross-Empowerment in a Multi-State Works-Contract ITC Chain

A works-contract subcontractor holding three separate GST registrations faced a combined demand of over five and a half crore rupees across three states, arising from an alleged fake-invoicing chain traced through its sub-subcontractor. The Delhi High Court rejected its challenge to DGGI's jurisdiction over State-registered taxpayers and to the Delhi North Commissionerate's authority to adjudicate, relegating the reasons-adequacy and Circular 171 defences to the Section 107 appeal, while extending interim protection to file it.