Delhi High Court Puts Hold on Rs 10.35 Crore GST Demand Against CCI

A temporary relief has provided by the Delhi High Court to the Competition Commission of India (CCI) by putting a stay on a Goods and Services Tax (GST) demand of Rs 10.35 crore. The court has stopped any further action until the issue is fully heard, this demand was made by the Central GST department.

A bench of two judges who responded to a petition filed by the CCI took this decision on May 21. A tax order was sent by GST authorities on January 16, 2025, stating that CCI had to pay GST dues worth Rs. 10.35 crore.

The CCI explained that it is a government body which is formed under the Competition Act, 2002, in its petition. It also stated that it does not do any business or commercial work which would attract GST. The Commission pointed to a recent judgment in a similar case involving the Central Electricity Regulatory Commission, in this case the court had ruled that GST can’t be applied in such cases.

After listening to both the sides, it was instructed by the court to not take any forcefully action CCI for now. The department has to submit its reply within six weeks. And the CCI can respond within four weeks after that.

This case will be next heard by the Joint Registrar on July 29, 2025. It will again take place before the bench for further hearing on September 8, 2025.

This stay order provides the CCI some time to breath while the court is looking deeper into the matter whether the GST rules apply to a regulatory body which does not earn income through business activities.