Goods and Services Tax

Case-Laws – GST – Highlights – The court held that the goods were accompanied by relevant documents like e-way bill, tax invoice, and the HSN code and quantity mentioned therein matched the actual goods. Despite the goods being physically verified as PVC Aluminum Mixed Cable (Feeder Cable) instead of aluminum cable, the HSN code and tax rate remained the same. The authority failed to prove any material difference in HSN code or tax rate from the invoices. The court quashed the detention order, stating that once the HSN code and tax rate match, no adverse inference can be drawn, as the petitioner would not gain by misdescribing the goods, nor would the state lose legitimate tax. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – E-Way Bill was not properly filled, but upon inspection, no discrepancy was found between the physically available goods and the goods disclosed in the E-Way Bill. The assessee claimed no intent to evade tax. The authorities did not find any intent to evade tax. The High Court held that in cases of mere technical breaches, where substantial compliance is disclosed, physical inspection tallies with the goods declared in the E-Way Bill, and no intent of tax evasion is made out, proceedings u/s 129 of the GST Act become vitiated. Consequently, the impugned order was quashed, and the petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Dismissal of an appeal by the petitioner against an assessment order. The dismissal was primarily due to the petitioner filing an online appeal without submitting a certified physical copy of the assessment order, instead providing a downloaded copy. The High Courts unanimously held that the amendment to Rule 108, effective from 26.12.2022, is procedural and retrospective, relying on Indian Potash Ltd. v. Deputy Commissioner and Oaknorth (India) Pvt. Ltd. v. Union of India. The courts agreed that rejecting an appeal on hyper-technical grounds is untenable, especially when filed timely with a downloaded copy. Consequently, the impugned appellate order was set aside, the appeal restored to the appellate authority for a merit-based decision in accordance with the law. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Eligibility criteria for GST exemption on hostel accommodation services, the requirement for GST registration based on turnover, the applicable GST rate for hostel accommodation services, and the tax treatment of in-house food supply as part of hostel services. The key points are: hostel accommodation services do not qualify as a 'residential dwelling for use as residence' and are ineligible for GST exemption under the relevant notification. The applicant is required to obtain GST registration if their aggregate annual turnover exceeds the prescribed threshold. The supply of hostel accommodation services is taxable at 9% CGST + 9% SGST under the relevant tariff heading. When accommodation and food services are provided as a composite supply, the tax rate applicable to the principal supply (accommodation) will apply to the composite supply, which is 18% GST. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Petitioner challenged dismissal of appeal by Appellate Authority against levy of penalty for excess Input Tax credit due to delay in filing appeal caused by unavoidable circumstances like critical illness of spouse requiring extensive medical care. Despite providing supporting documentation, Appellate Authority refused to condone delay citing rigid interpretation of statutory time limits lacking judicial empathy. Court held Appellate Authority's approach unduly harsh, legally unsound obstructing petitioner's statutory right to higher appeal due to non-formation of GST Appellate Tribunal. Considering procedural irregularities, arbitrary actions and misapplication of statute, Court allowed writ petition, quashed impugned orders, restored petitioner's rights under WBGST Act with attendant benefits without adverse consequences arising from annulled orders. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court held that the writ petition challenging the show cause notice issued for levying GST on commission received under the Chit Funds Act is maintainable. Despite the availability of an alternate adjudication mechanism, the Court can exercise jurisdiction under Article 226 when proceedings are challenged as being without jurisdiction, based on the Supreme Court's judgment in Calcutta Discount Co. Ltd. v. ITO. In the present case, as per the Supreme Court's decision in Oriental Kuries Limited and Notification No.12 of 2017, the issuance of the show cause notice alleging GST levy on transactions under the Chit Funds Act is clearly without jurisdiction, without any disputed questions of fact. Therefore, the show cause notice is quashed as being issued without jurisdiction, and the writ petition is allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Taxability of additional surcharge collected by a government-owned electricity distribution company from open access consumers who source electricity from private generators. The key points are: The company is exempt from filing certain GST returns and can claim input tax credit on capitalized goods/services and services for support/auxiliary supplies. It can also claim proportionate input tax credit on taxable output supplies of support services and goods like scrap. The company is eligible to claim taxes paid under reverse charge mechanism as input tax credit. The additional surcharge collected from open access consumers is to meet the fixed costs arising from the company's obligation to supply electricity as per power purchase agreements. This collection mechanism is backed by the Electricity Act, policies of the central and state governments, and regulations. The additional surcharge does not constitute consideration for tolerating an act but is collected to cover fixed costs incurred due to power purchase agreements. Therefore, it should form part of the taxable value u/s 15 of the CGST Act, 2017. However, the supply of electricity as goods or distribution of electricity as a service is exempt from GST under relevant notifications. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The ruling pertains to the exemption from GST on pure services provided by a Goods Transport Agency (GTA) to an unregistered foreign entity. The applicant, a GTA-cum-Packing & Moving Company, claimed exemption under relevant notifications. However, the ruling clarified that the exemption is exclusively for services by a GTA to an unregistered person, where a GTA is defined as one issuing consignment notes for road transport of goods. As the applicant did not issue consignment notes, it was held ineligible for the exemption. Additionally, the applicant provided a bundle of services like customs clearance, loading/unloading, port handling, etc., individually charged, further disqualifying it from the exemption meant for pure GTA services. Consequently, the exemption was deemed inapplicable to the applicant's case. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court found a violation of principles of natural justice as the notices were uploaded on the “view additional notices and orders” tab of the GST portal, and the petitioner was unaware of the proceedings. The impugned order pertained to discrepancies between the petitioner's GSTR-3B return, auto-populated GSTR-2A, and reconciliation of turnover as per the Income Tax return and GSTR-3B return. The tax proposal was confirmed due to the petitioner's failure to reply to the show cause notice. Considering these circumstances, the High Court set aside the impugned order dated 9-8-2023 on the condition that the petitioner remits 10% of the disputed tax demand within two weeks and submits a reply to the show cause notice within the same period. The petition was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the writ petition challenging the notice issued u/s 65 of the Maharashtra Goods and Services Tax Act, 2017 for conducting an audit for the financial year 2020-21, even though the petitioner had ceased to be registered on the date of ordering the audit. The Court held that the provisions of Section 65 dealing with audit would apply to a person who was registered under the CGST Act for the period for which an audit is ordered, irrespective of subsequent de-registration. The preliminary audit report had found excess input tax credit claimed, improper reversal of input tax credit, and short disclosure of other income, resulting in a total tax plus interest liability. The Court observed that a person cannot escape audit proceedings by claiming de-registration, as obligations u/s 65(5) must be complied with, and Section 29(3) requires discharge of obligations even after cancellation of registration. Obstructing audit proceedings by taking such a plea would be improper if the assessee has defaulted in tax payment, wrongly availed input tax credit or refund. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The case pertains to the jurisdiction of impugned orders under the U.P.G.S.T. Act, 2017, and the time limitation u/s 73 and Section 44 of the Act. The key points are: the retrospective effect of notifications, the time limit prescribed for issuing orders u/s 73(9) based on the due date of filing annual returns u/s 44(1), and the validity of the impugned orders in light of this time limit. The due date for filing the annual return for the financial year 2017-18 was extended to 05.02.2020 via notifications. Consequently, the three-year time limit u/s 73(10) for issuing orders ended on 05.02.2023. However, the impugned orders were dated 05.10.2024 and 02.12.2023, beyond the prescribed time limit. Therefore, the High Court held that the impugned orders were beyond jurisdiction, being barred by the time limit u/s 73(10). Consequently, the writ petition was allowed, the impugned orders were quashed, and the petitioner's frozen accounts were ordered to be de-frozen. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Inordinate, unexplained delay in issuing show cause notice and adjudication order violates principles of natural justice. The Court, citing precedents, quashed the show cause notice and restrained the Respondents from proceeding further with the inordinately delayed adjudication. The impugned order was set aside, preventing further steps or proceedings arising from it. The petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court granted interim relief to the petitioners challenging an order issued u/s 74 of the Central/West Bengal Goods and Services Tax Act, 2017. Considering the prima facie case and the clarification issued by the Central Board of Indirect Taxes and Customs, the petitioners were entitled to limited protection. The Court extended the time for responding to the show cause notice by three weeks and granted liberty to mention the matter after the exchange of affidavits. The respondents were also granted liberty to apply. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court rectified its previous order, holding that Notification No. 54/2018 Central Tax shall apply prospectively from 9th October 2018 only. Consequently, the show cause notice dated 31.03.2023, issued on the basis of retrospective operation of the said Notification for the period prior to 9.10.2018, was quashed as being without jurisdiction. The amount quantified towards alleged erroneous refund for the period before 9.10.2018 would not survive, as the Notification would be applicable prospectively. The petition was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Notification 53/2023 issued by the Ministry of Finance permitted filing delayed appeals beyond Section 107 of GST Act, stipulating payment of 12.5% of pending amounts, with 20% paid from Electronic Cash Ledger. This implied the 10% prescribed by statute could be paid from Electronic Credit Ledger. The High Court initially rejected the appeal on grounds of payment from Electronic Cash Ledger. However, as the Supreme Court stayed the Division Bench judgment, the High Court opined that pending Supreme Court's decision, the appeal should be considered on merits. Consequently, the order rejecting the appeal was set aside, and the petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The applicant, acting as an aggregator for diagnostic and lab services provided through third-party diagnostic labs, is liable to collect GST on the entire invoice amount raised on companies/insurance companies/insurance brokers, not merely on the margin. The applicable tax rate is based on the services being diagnostic services covered under healthcare services, classified under SAC 9993. The applicant does not qualify as an e-commerce operator or a clinical establishment eligible for exemption. Therefore, the applicant must collect GST on the diagnostic and lab services provided to clients. The applicant also does not fall under the definition of an “Insurance Agent” when invoicing insurance companies, and must raise invoices as per other companies. The issue of collecting Tax Collected at Source (TCS) is redundant since the applicant is not an e-commerce operator. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 19-11-2024 – News – Important advisory on GSTR 2B and IMS Dated:- 19-11-2024 – 1. It has been reported by few taxpayers that their GSTR-2B for October-2024 period has not been generated on 14th November, 2024. In this regard it to be informed that as per the design of IMS, GSTR-2B will not be generated by the system in below scenarios: i. In case the taxpayer has opted for QRMP scheme (Quarterly filers), GSTR-2B will not be generated for first and second month of the quarter. Ex. For quarter Oct-Dec, 2024, the quarterly taxpayer will get GSTR-2B for December-2024 period only and not for October-2024 November-2024. ii. In case the taxpayer has not filed their previous period GSTR-3B , GSTR-2B will not

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d/521 3 Frequently Asked Questions on IMS Sep 22nd, 2024 https://services.gst.gov.in/services/advisoryandreleases/read/522 4 Attention – Advisory on IMS Oct 14th, 2024 https://services.gst.gov.in/services/advisoryandreleases/read/532 5 Additional FAQs on IMS Oct 17th, 2024 https://services.gst.gov.in/services/advisoryandreleases/read/536 6 Advisory regarding IMS during initial phase of its implementation Nov 12th, 2024 https://services.gst.gov.in/services/advisoryandreleases/read/547 7 Advisory on IMS on Supplier View Nov 13th, 2024 https://services.gst.gov.in/services/advisoryandreleases/read/548 Thanking You, Team GSTN – – News – Press release – PIB Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI

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Case-Laws – GST – Highlights – Challenge to assessment order and rectification order for assessment year 2018-19 – mismatch between GSTR-3B and GSTR-2A/GSTR-2B – order challenged on grounds of non-service through tendering or registered post, violating principles of natural justice – impugned order set aside – petitioner directed to deposit 25% of disputed tax as per rectification order within 4 weeks – on compliance, assessment order treated as show cause notice – petitioner to file objections with supporting documents within 4 weeks – writ petition disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Petitioner challenged order u/s 73 of GST Act creating demand, as notices were uploaded on GST portal's 'Additional Notices and Orders' tab, unbeknownst to petitioner who couldn't appear or question orders within limitation period. Referring to OLA FLEET case, where impugned order wasn't reflected under 'View Notices and Orders' tab and assessee's replies weren't considered, High Court quashed impugned orders dated 27.12.2023 and 02.02.2023 passed by Assistant Commissioner. Petitioner allowed to treat impugned order as final notice and submit reply within two weeks, as disputed amount deposited with government and no outstanding demand exists. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court held that the final assessment order passed by the authority exceeded the scope of the show cause notice by determining a higher tax liability than alleged in the notice. This violated Section 75(7) of the Act, which mandates that the final order cannot travel beyond the allegations in the show cause notice. Consequently, the High Court set aside the impugned assessment order and directed the competent authority to re-hear the matter, consider all objections, and pass a fresh order in accordance with law. The writ petition was disposed of without expressing any opinion on the merits of the case. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Extension of time limits for filing annual returns under GST Acts was valid. Show Cause Notice issued within extended time limit u/s 73(9) of CGST/AGST Act for FY 2017-18 was upheld. Writ petition was dismissed as statutory appeal remedy u/s 107 of CGST/AGST Act was available against the Order-in-Original passed by the Adjudicating Authority. Principles of alternative statutory remedy, absence of violation of natural justice, jurisdiction and legislative vires were reiterated for declining writ jurisdiction under Article 226. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Entertainability of petition challenging show cause notice for recovery of taxes, determination of value of supply u/s 15(3)(b) of CGST Act. Allegations of suppressing facts, misstatement regarding non-furnishing outward supplies u/s 37, intention to evade GST from July 2017 to March 2022. Invocation of extended period of limitation based on suppression, misstatement with intent to evade GST. Adjudication on factual issues of suppression, misstatement, onus of proof u/s 15(3)(b) cannot be undertaken in writ jurisdiction. No challenge to circular in prayer. Petition dismissed, time granted till 15 December 2024 to file reply. Personal hearing, reasoned order by 31 January 2025 directed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Interest on delayed refund of tax u/s 56 of Central Goods and Services Tax Act, 2017 is payable from expiry of 60 days from date of filing shipping bill till date of actual refund, irrespective of any interim period where assessee's name was red-flagged on department's portal. Section 56 provides for period of interest payment, commencing from date of receipt of refund application till refund grant. Shipping bill is considered refund application, hence interest accrues after 60 days from its filing. Denying interest by excluding contingent period of red-flagging would amount to rewriting Section 56, which is impermissible. Assessee is entitled to interest for entire period from 60 days after shipping bill till date of refund grant. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Proviso to sub-rule (4) of Rule 22 of CGST Rules 2017 allows revocation of GST registration cancellation u/s 29(2)(c) of CGST Act 2017 if pending returns are filed and tax, interest and late fees paid. Petitioner's GST registration was cancelled for non-filing returns for 6 months. High Court set aside cancellation order, directing petitioner to approach authority within 1 month for revocation upon filing pending returns and paying dues, following precedents. Petition disposed accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The court dismissed the petitioner's appeal due to non-compliance with statutory requirements, specifically the failure to submit valid proof of payment of the mandatory pre-deposit and the absence of valid documents establishing the petitioner's authority as an authorized signatory under the Companies Act. However, the court found that the respondent erred in not verifying the petitioner's authorization on the GSTN portal. Citing a precedent case, the court quashed the impugned order and remanded the matter to the respondent for fresh consideration, emphasizing the importance of adhering to due process and verifying relevant facts before rendering a decision. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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