Author: admin_gst

Case-Laws – GST – Highlights – The court found merit in the petitioner's submission that the impugned order of assessment violated principles of natural justice by traversing beyond the show cause notice, denying the petitioner an opportunity to present their case. Regarding the discrepancy between GSTR-2A and GSTR-3B, the court held that the order proceeded without considering the petitioner's reply and supporting documentary evidence. Concerning the denial of ITC on discounts, finance charges, and depreciation, the court granted the petitioner an opportunity to submit objections and supporting documents before the adjudicating authority. The impugned order was set aside, and the petitioner was directed to deposit the tax liability for the three issues within four weeks. Upon compliance, the impugned order shall be treated as a show cause notice, and the petitioner shall submit objections with supporting documents for all four issues within four weeks for reconsideration by the respondents after a reasonable opportunity of hearing. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The e-commerce operator's nature of supply is conceptualized u/s 9(5) of the CGST Act, 2017, read with Notification No. 17/2017. The operator is liable to collect and pay GST on the supply of services provided by drivers/service providers to customers identified on the platform, under the proposed business model. The applicant falls within the definition of an electronic commerce operator, and the supply of passenger transportation services through auto-rickshaws, radio-taxis, motorcabs, maxicabs, and motorcycles is facilitated through their platform. By virtue of Section 9(5), the applicant is liable to pay tax on the supply of passenger transportation services by radio-taxis, motorcabs, maxicabs, and motorcycles. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The petitioner was not served with notices/communications, resulting in their failure to file a reply within the stipulated time. As per the proviso to Rule 86B of the GST Rules, the petitioner is not liable to pay any tax amount. However, the petitioner, being unaware of the show cause notice, failed to appear for personal hearing before the respondent authority. Consequently, no opportunity of personal hearing was provided to the petitioner prior to passing the impugned order, violating the principles of natural justice. The High Court set aside the impugned order dated 26.03.2024 and remanded the matter to the respondent authority for fresh consideration, allowing the petition through remand, as it is just and necessary to provide an opportunity to the petitioner to establish their case on merits. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The applicant's services do not constitute a transfer of the right to use goods, as substantial control remains with the contractor and is not handed over to the user. The contracts in question are leasing or rental services without an operator, falling under Sl. No. 17 (viii) of Notification No. 11/2017 Central Tax (Rate) dated 28-06-2017. Such services attract GST at the rate of 18%, as per the Advance Ruling Authority's decision. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court set aside the impugned order passed by the respondent in Form GST DRC-07, reversing the ITC availed by the petitioner. The respondent had passed the order without affording an opportunity of personal hearing to the petitioner, violating Section 75(4) of the CGST Act and principles of natural justice. The matter was remanded to the respondent for fresh consideration after issuing a 14-day notice to the petitioner for personal hearing, considering the reply already filed, and deciding the matter in accordance with law. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Packed halwa purchased from an outsourced manufacturer and marketed under the applicant's brand name is classifiable under HSN Code 2106 90 as “sweetmeats” and taxable at 2.5% CGST under Entry No. 101 of Schedule I of Notification No. 1/2017 Central Tax (Rate), dated 28-06-2017. Despite the same HSN 2106 90 appearing in Schedule II covering “Namkeens,” when a specific item like sweetmeat is named and covered under Schedule I, it should be classified accordingly, irrespective of its HSN code appearing in both schedules. The Advance Ruling Authority held that when sweetmeat is specifically named under Schedule I, there is no reason to classify it under Schedule II, even if the same HSN code is present in both schedules. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST Dated:- 8-11-2024 – News – For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025. In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated . 8th October 2024, effective from 1st November 2024. This rule provides procedural guideline

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST Dated:- 8-11-2024 – News – Dear Taxpayers, As per Notification No. 2/2017-Central Tax dated 19th June, 2017 read with Trade Notice No. 01/2017-Central Tax dated 21st June, 2017 issued by Office of the Chief Commissioner of Central Excise, Mumbai Zone I and GST Trade Notice No. 002/2017 dated 20th June, 2017 issued by Central Excise Zone, Chennai, the applicant applying for new registration application and selecting the category of Other Territory in the tab of State/UT in Part-A of GST registration form, shall only be administered under Mumbai South or Chennai North Commissionerate s and shall select centre jurisdiction as follows: 1. For Other Territory pertaining to the continental shelf and exclusive econo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Petitioner sought regular bail, contending false implication and non-impleadment of main accused. Petitioner underwent 11 months and 26 days of custody, with another case pending on bail. Charges framed u/ss 420, 467, 468, 471 IPC and Section 132 CGST Act, 2017. Court observed that out of 12 prosecution witnesses, only 3 examined till date, and further detention would violate Article 21's right to speedy trial, as per Dataram Singh case. Deprivation of liberty without speedy trial inconsistent with Article 21, as per Abdul Rehman Antulay case. Veracity of allegations to be established during trial. Only 3 witnesses examined despite charges framed, rendering further incarceration purposeless. Without commenting on merits, bail granted subject to conditions, applying “bail is rule, jail exception” principle. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Order for cancellation of registration passed without providing opportunity of hearing or assigning reasons violates principles of natural justice. Coordinate Bench judgment held authorities should have considered transitional registration applications favorably during GST implementation. Despite directions, cryptic notice and order cancelling petitioner's registration issued without reasons. Appeal dismissed, precluding revisional remedy u/s 108. Impugned orders quashed, matter remanded to Assessing Officer at show cause notice stage for fresh adjudication after following due process. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – This is a judgment by the High Court granting regular bail to the petitioner accused of offenses u/ss 420, 467, 468, 471 of the Indian Penal Code and Section 132(1)(b) and (c) of the HGST Act, 2017, related to wrongful availment and utilization of Input Tax Credit (ITC). The court considered that the petitioner has already undergone substantial incarceration, co-accused have been granted bail, and the trial is likely to take considerable time. The court relied on the principles of criminal jurisprudence, the right to a speedy trial under Article 21 of the Constitution, and the need to minimize pre-conviction detention. The court also cited precedents emphasizing that bail is the general rule, and denial of bail should not be based solely on pending cases or convictions. Consequently, the petitioner was directed to be released on regular bail upon furnishing bail and surety bonds to the satisfaction of the trial court or duty magistrate. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court examined the issue of whether the Appellate Authority was legally correct in rejecting appeals filed beyond the time limit prescribed under the Haryana Goods and Services Tax Act, 2017. It was found that while the petitioners had paid the pre-deposit for hearing the appeal, the appeals were admittedly filed beyond the limitation period, even exceeding the additional period of 30 days for condonation u/ss 107 and 35(1) of the Act. The provisions u/s 107 are not amenable to the Limitation Act, and the delay cannot be further condoned as the condonation is provided within the Act itself. Consequently, the Appellate Authority's action in rejecting the appeals cannot be deemed illegal or unjustified. The Supreme Court's decision in M/s Tecnimont Pvt. Ltd. Vs. State of Punjab, regarding non-deposit of pre-deposit and rejection of appeals, was considered, wherein the High Court retains jurisdiction under Article 226 to condone the pre-deposit requirement based on case facts. The cancellation of GST registration has a cascading effect on other businesses, necessitating finality in the decision and an efficacious remedy for the aggrieved person. The powers to hear appeals u/s 107 would not be subject to filing within the prescribed time, as it would not deprive a person. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – GST registration cancellation order passed without providing reasons or opportunity for hearing, violating principles of natural justice. Appellate authority dismissed appeal without considering petitioner's submissions. High Court quashed cancellation order and appellate order, remanding matter to assessing officer for issuing show cause notice and following due process. Petitioner's registration to remain suspended till disposal of show cause notice in accordance with court's directions. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST Dated:- 6-11-2024 – News – Advisory for Form GST DRC-03A Dated:- 6-11-2024 – 1. It has been observed that some taxpayers have paid the demanded amount vide DRC 07 / DRC 08 / MOV 09 / MOV 11 / APL 04 through DRC-03 instead of using payment facility Payment towards demand available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024. 2. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST Dated:- 6-11-2024 – News – Advisory: Time Limit for Reporting e-Invoice on the IRP Portal – Lowering of Threshold to AATO 10 Crores and Above Dated:- 6-11-2024 – Dear Taxpayers, 1. With reference to the earlier advisory dated 13th September 2023 ( https://einvoice.gst.gov.in/einvoice/newsandupdates/read-602 ), where a time limit of 30 days for reporting e-Invoices on IRP portals for taxpayers with an AATO of 100 crores and above was implemented, the threshold has now been lowered to cover taxpayers with an AATO of 10 crores and above. 2. Therefore, from 1st April 2025, taxpayers with an AATO of 10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP p

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court directed the respondents to release all refunds due and payable to the petitioner within three weeks, pursuant to the appellate authority's order dated July 4, 2024. This order was issued as the petitioner's statutory appeals and refund claims were inordinately delayed, compelling the petitioner to approach the Court. The Court disposed of the writ petition after the pending appeals pertaining to the relevant tax periods were allowed in the petitioner's favor, rendering no further issues to be adjudicated. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court ruled on the constitutional validity of Rule 96(10) of the Central Goods and Services Tax (CGST) Rules, 2017, which was challenged as being ultra vires Section 16 of the Integrated Goods and Services Tax (IGST) Act, 2017, and violating Articles 14, 19(1)(g), and 265 of the Constitution. The court held that Rule 96(10), as inserted by a notification dated 09-10-2018 with effect from 23-10-2017, is ultra vires Section 16 of the IGST Act and manifestly arbitrary, producing absurd results unintended by the legislature. Consequently, the court declared Rule 96(10) unenforceable and quashed any actions or orders against the petitioners based on it. The court directed that no proceedings shall be taken to recover IGST refunded to the petitioners by applying Rule 96(10) for the period between 23-10-2017 and 08-10-2024. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court held that the issue of 'negative blocking' of Electronic Credit Ledger (ECL) as per the Central Goods and Services Tax Act, 2017 and Rules is no longer an open issue and stands concluded by its previous decision. The Court allowed the petition and set aside the orders disallowing debit from the ECL in excess of the available Input Tax Credit at the time of passing the impugned orders, terming it as 'negative blocking'. The action of the respondents in negatively blocking the ECL cannot be sustained. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The Court held that due to amendments brought in by the Finance (No. 2) Act, 2024, the registered person is entitled to avail input tax credit for the relevant period subject to conditions prescribed under newly inserted Sections 16(5) and 16(6) of the CGST Act, 2017. The amendments, given retrospective effect from 01.07.2017, rendered the proceedings initiated against the petitioner through the show-cause notice redundant. Consequently, the impugned order was set aside, and the matter was remanded to the jurisdictional officer to pass an appropriate order. The petition was disposed of by way of remand. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court addressed the extension of due dates u/s 73 of the CGST/AGST Act, 2017 due to the Covid-19 pandemic. It examined the provisions related to the time limit prescribed u/s 73 and the invocation of Section 168A, considering the “force majeure” condition. The Court observed that, notwithstanding Section 16(4), for financial years 2017-18 to 2020-21, the registered person shall be entitled to take input tax credit in any return filed u/s 39 up to November 30, 2021. The amendments brought by the Finance (No. 2) Act, 2024, rendered the challenge in the writ petition redundant. The petitioner is entitled to avail the input tax credit benefit for the relevant period, subject to the conditions prescribed in the newly inserted Sections 16(5) and 16(6). Consequently, the impugned order was set aside, and the matter was remanded to the competent jurisdictional officer for appropriate orders. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Interim order by High Court lifting attachment on petitioner's bank account pending final disposal, allowing petitioner opportunity to respond to demand notice issued under CGST Act. Court refrains from opining on merits, directs petitioner to appear before respondent authority on specified date for further proceedings in accordance with law. Petition disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court addressed the challenge to notifications extending the time limit for issuance of orders u/s 73 of the CGST/AGST Act, 2017, due to the “force majeure” condition of Covid-19. The Court noted that amendments introduced by the Finance (No. 2) Act, 2024, retrospectively effective from 01.07.2017, allowed registered persons to claim input tax credit for financial years 2017-18 to 2020-21, subject to conditions prescribed in the newly inserted Sections 16(5) and 16(6) of the CGST Act, 2017. Consequently, the show-cause notice issued against the petitioners became redundant. The Court set aside the impugned order and remanded the matter to the competent jurisdictional officer for passing an appropriate order, disposing of the petition. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Profiteering in GST rates for admission to cinema exhibitions. Despite a reduction in GST rates from 28% to 18%, the benefit was not passed on to consumers, and instead, the base price was increased to maintain a uniform “cum-tax” selling price. The High Court held that once the GST rate was reduced, it became mandatory for the petitioner to pass on the benefit of that reduction. There was no justification to interfere with the Competition Commission of India's (CCI) view, and the petition challenging the CCI's order was dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – Non-issuance of a proper Show Cause Notice u/s 73(1) of the State Goods and Services Tax Act, 2017 (AGST Act) prior to passing the impugned order u/s 73(9) violates principles of natural justice. Mere issuance of a Summary of Show Cause Notice and Attachment to Determination of Tax does not comply with Section 73(1) and Rule 142(1) of AGST Rules, 2017. Section 73 mandates issuance of a Show Cause Notice by the proper officer, recording statements u/s 73(3), and passing orders u/s 73(9) by the proper officer. Compliance with Section 73(1) to (8) and (10) to (11), and Rule 142(1) is a prerequisite for a valid order u/s 73(9). Absence of a proper Show Cause Notice u/s 73(1) renders the impugned order unsustainable, necessitating its quashing by the High Court. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Case-Laws – GST – Highlights – The High Court dismissed the petition challenging the show-cause notice dated 20.08.2024 issued by the respondent authority in relation to the refund of integrated taxes for the period FY 2018-19 to 2020-21. The court held that Rule 86(4B) of the CGST Rules, introduced vide Notification No. 14/2022-Central Tax dated 05.07.2022, allows recredit of input tax credit pertaining to the amount paid back for contravention of Rule 96 of the CGST Rules. The respondent authority initiated an independent investigation against the petitioner regarding the refund of integrated tax for the period in question, issuing the first show-cause notice on 03.04.2024. The court observed that there is a separate period of limitation of three years from the date of erroneous refund, and the Special Intelligence and Investigation Branch had started an investigation against the petitioner for the FY 2017-18 to 2020-2021 before issuing the show-cause notice after scrutinizing all documents. Therefore, the court found no reason to interfere with the impugned show-cause notice. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =