Andhra Pradesh High Court Holds Composite GST Assessment Orders for Multiple Years Are Invalid Under Sections 73 and 74

In a significant decision, the Andhra Pradesh High Court clarified the legal position regarding the issuance of composite assessment orders under the GST Act, 2017. The Court addressed whether a single assessment order covering multiple financial years is permissible under Sections 73 and 74 of the Act.

The petitioner, a registered company, challenged an assessment order dated 01.10.2021, which covered the period from 2017-18 to 2019-20. The primary ground pressed by the petitioner was that issuing a single assessment order for more than one financial year violates the statutory provisions of the GST Act. The petitioner also faced a preliminary objection from the respondents regarding the delay in filing the writ petition, as it was filed in February 2026, several years after the impugned order.

The Court considered the petitioner’s medical records, which documented serious health issues, including depressive psychosis, cardiac problems, liver complications, and surgery for appendicitis. In light of these circumstances, the Court adopted a liberal approach and condoned the delay in filing the writ petition.

On the substantive issue, the Court referred to a previous Division Bench decision in W.P.No.11028 of 2025 & batch, which held that a single show-cause notice or composite assessment order cannot be issued for more than one tax period—whether monthly or yearly—depending on the timing of the assessment relative to the due date for filing the annual return. The Court reiterated that the GST Act requires separate assessment proceedings for each assessment year.

Accordingly, the High Court set aside the impugned composite assessment order and remanded the matter to the authorities, directing them to initiate fresh proceedings for each assessment year separately. All attachments and actions pursuant to the set-aside order were also quashed. The Court further clarified that the period from the date of the impugned order to the date of receipt of the present order would be excluded for limitation purposes.

Additionally, the Court directed that the proposed auction under the notice dated 09.02.2026 should not proceed, but clarified that this would not prevent the authorities from completing the assessment process expeditiously and taking recovery steps if any amounts are found due. The writ petition was disposed of on the primary ground of the composite assessment order, with other grounds left open.

This ruling reinforces the statutory mandate for separate assessment orders for each financial year under the GST Act and provides clear guidance to tax authorities and taxpayers on the procedural requirements for assessment proceedings.