The Patna High Court has directed the GST appellate authority to reconsider a dispute concerning the applicability of Goods and Services Tax (GST) on receipts earned by a registered organisation engaged in conducting Nukkad Natak (street plays) for public awareness programmes.

A Division Bench comprising Justice Anil Kumar Sinha and Justice Vikash Kumar set aside an appellate order that had dismissed the organisation’s appeal solely on the ground that it was filed 21 days beyond the statutory period of limitation. The Court held that the dispute raised a fundamental issue concerning the jurisdiction of the authority that had imposed the tax liability and required examination on merits.

The dispute arose from a GST proceeding concerning the financial year 2022-23. According to the petition, the organisation had received a gross amount of Rs. 4,98,100 from the District Public Relations Officer, Gaya, in connection with its activities.

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A notice under Section 73 of the GST law was issued, following which the adjudicating authority passed an order dated August 20, 2025, imposing a combined liability of Rs. 1,63,452 towards tax, interest and penalty.

The organisation subsequently invoked the statutory appellate remedy under Section 107(1). However, its appeal was dismissed by the Appellate Authority on February 28, 2026, because it had been filed with a delay of 21 days.

The limitation issue therefore prevented the appellate authority from examining the substantive question of whether the receipts in question were actually liable to GST.

The principal issue before the High Court was not merely whether the appeal was delayed, but whether the underlying GST liability itself was legally sustainable.

The petitioner argued that it was engaged in conducting Nukkad Natak for public awareness programmes, primarily on assignments from government departments. It was also undisputed that the organisation was registered under the GST regime.

The organisation relied upon a memo issued by the Collectorate, Gaya, which stated that GST was not applicable to receipts against the sale of tickets by a registered person engaged in the profession of Nukkad Natak. According to the petitioner, the communication further indicated that the Nukkad Natak team was exempted from the GST regime.

This exemption claim became central to the proceedings because, if legally applicable, it could directly affect the tax liability of the organisation.

The State opposed the petition and defended the appellate authority’s decision to reject the appeal as time-barred.

The State’s counsel also questioned the legal foundation of the exemption relied upon by the petitioner. According to the State, the exemption communication had been issued by the District Public Relations Officer, Gaya, but did not identify the statutory provision or any decision of the GST Council under which the Nukkad Natak team was allegedly exempted from GST.

Thus, the proceedings involved a significant question of whether the exemption claimed by the petitioner had a valid legal basis and whether the authority imposing the tax had properly considered that question.

After considering the rival submissions, the Division Bench took note of the fact that the exemption question went to the root of the authority’s jurisdiction to impose the tax liability.

The Court observed that the Appellate Authority had dismissed the appeal on limitation without adjudicating the substantive question raised by the petitioner. The Bench therefore concluded that the exemption issue required consideration on merits.

The Court specifically directed the Appellate Authority to examine whether the petitioner, despite being a registered person, was exempted from GST liability in respect of its Nukkad Natak activities.

As a consequence, the Patna High Court set aside the appellate order dated February 28, 2026.

Rather than deciding the GST exemption issue itself, the Court remitted the matter to the Appellate Authority with a direction to determine the exemption claim in accordance with law. The authority has been given a period of two months from the date of receipt or production of a copy of the High Court’s order to decide the matter.

The High Court’s order therefore does not itself declare that Nukkad Natak performances are exempt from GST. Instead, it requires the competent appellate authority to examine and decide the petitioner’s exemption claim on its legal merits.

The Court also prescribed a specific procedural timeline for the further proceedings.

The petitioner has been directed to produce a copy of the High Court’s order and appear before the Appellate Authority for fixing the date of hearing within one week. Following production of the order, the Appellate Authority must fix the hearing and dispose of the appeal after providing the petitioner with a personal hearing, and this entire process must be completed within a maximum period of two months.

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