Author: admin_gst

GST portal service requires statutory validity and meaningful access before ex parte demand proceedings can withstand challenge.
Notes
GST
GST portal availability is a statutory method of serving notices and orders, but its use must afford a meaningful opportunity to respond and be heard in demand proceedings. Section 169 recognises portal upload and e-mail as service modes, while Sections 73 and 75 require a show-cause response, consideration of representations and a hearing before an adverse decision. Rule 142 requires electronic DRC-01 and DRC-07 summaries alongside the underlying statutory process; summaries do not replace the full notice or reasoned order. Portal-only service may be vulnerable where notices are inaccessible, technically unreliable, or produce an ex parte order without effective communication. Actual participation may cure prejudice, whereas ineffective service may justify remand while preserving adjudication on merits.
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Post-death GST liability permits fresh proceedings against legal representatives, while discontinued-business recovery remains limited to the inherited estate.
Notes
GST
Section 93 of the CGST Act permits post-death determination of GST liability against a legal representative, including fresh proceedings where no notice or assessment began during the deceased person's lifetime. Where the business was discontinued, tax, interest and penalty are recoverable only from the inherited estate and only to the extent it can meet the charge; the heir's independent assets remain outside that liability. Where the business continued, liability depends on material establishing continuation by the representative or another person. Notices must be issued to the legal representative in that capacity, not to the deceased, and adjudication must comply with applicable limitation, hearing, reasoned-order and service requirements.
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Unaccounted stock found during survey requires tax determination, making direct confiscation and penalty proceedings impermissible.
Case-Laws
GST
Unaccounted goods found during a survey are deemed supplies under section 35(6), requiring determination of tax under sections 73 or 74. The proper officer may therefore pursue tax determination for excess or unaccounted stock at business premises, but may not directly invoke confiscation under section 130 or impose a penalty in lieu of confiscation. Confiscation proceedings under section 130 read with Rule 120, whether substituted for or added to tax-determination proceedings, are unsustainable. The confiscation-related fine and penalty were set aside, and the Revenue's appeal was dismissed.
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Proof of principal place of business governs GST registration; missing additional-premises rent agreement cannot justify cancellation.
Case-Laws
GST
GST registration cannot be cancelled solely because a rent agreement for an additional place of business was not produced where the prescribed registration application requires proof only of the principal place of business. Cancellation for contravention applies when statutory conditions, including non-conduct of business from the declared place, are established. Reliance exclusively on non-submission of documentation for an additional place of business conflicts with the statutory scheme and prescribed form. The cancellation and show-cause notice were quashed, and registration was restored from the suspension date.
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Compensation Cess credit refunds require statutory inverted-tax-structure eligibility; admissible coal credit alone cannot support refunds on domestic leather supplies.
Case-Laws
GST
Refund of accumulated Compensation Cess input tax credit on coal used to manufacture leather products for domestic supplies requires independent satisfaction of statutory refund conditions for an inverted tax structure. Eligibility to avail such credit, and the absence of a blocked-credit restriction, do not by themselves establish entitlement to a cash refund. Inability to utilise the credit against other liabilities cannot independently create a refund right, and the refund formula or procedure cannot create substantive entitlement where statutory conditions are unmet. Clarifications concerning zero-rated supplies did not establish eligibility for the domestic supplies. The appellate order allowing the claims was set aside and the rejection orders were restored.
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Refund of Excess IGST: Clerical GSTR-3B misreporting cannot justify retention of tax paid twice on zero-rated exports.
Case-Laws
GST
Excess IGST paid on zero-rated cashew-kernel exports because of a clerical GSTR-3B classification error remains refundable where export turnover and tax were correctly declared in GSTR-1. Incorrect reporting in the domestic-supply column may block automated Customs processing, prompting a second correctly reported payment and refund of only that later payment. Reconciliation establishing the original payment as excess supports refund, as retaining tax paid twice lacks authority of law. Procedural difficulties in GST refund processing cannot justify withholding the unrecovered original IGST payment.
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GST Transit Penalties Require Proof of Existing Contravention; Route Deviation and Uncorroborated Delivery Allegations Are Insufficient.
Case-Laws
GST
GST transit penalties require evidence of an existing statutory contravention rather than presumptions based on a vehicle's route or anticipated delivery. A place-of-supply entry consistent with the invoice and e-way bill undermines an allegation that goods were diverted to an undeclared local supply. The GST framework does not require a selling dealer to disclose or follow a particular transportation route; route deviation alone, where accompanying documents are genuine, does not establish contravention. An uncorroborated driver statement referring to an unverified third party, coupled with interception before unloading, is insufficient to prove unauthorised delivery or tax evasion.
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Road restoration charges for commercial pipeline work attract reverse-charge GST; portal-only proceedings remain valid without a physical DIN.
Case-Laws
GST
Road restoration charges paid to the PWD for cutting and restoring roads for a commercial gas-pipeline project constitute consideration for a taxable service, not compensatory damages or a non-supply arising from a sovereign function. The planned, request-based arrangement created bilateral reciprocity, and GST was payable by the business recipient under reverse charge because no evidence showed tax payment by the PWD under forward charge; the refund rejection stood. Electronic GST notices and adjudication through an authenticated portal remain valid despite no physical DIN where the notice states the factual and legal basis and the recipient suffers no surprise or prejudice; the procedural objections failed.
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Input tax credit claims require transaction-specific proof of goods receipt; restored supplier registration supports entitlement despite bogus-supplier allegations.
Case-Laws
GST
Input tax credit on purchases from an allegedly bogus supplier was allowed where the recipient produced purchase, transportation and goods-receipt records. Entitlement required examination of statutory conditions and transaction-specific evidence, rather than reliance solely on allegations against the supplier. Restoration of the supplier's registration also undermined the claim that it was bogus or non-existent. Documents submitted as additional evidence did not prejudice the adjudicating authority because they were forwarded for examination and its report was considered. The procedural objection was rejected, and the Revenue's appeal against allowance of input tax credit was dismissed.
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Show-cause notice safeguards require consignees to answer alleged GST discrepancies before tax-evasion determinations are made.
Case-Laws
GST
Consignees of detained goods must receive a show-cause notice and a meaningful opportunity to respond before alleged undervaluation, underweight declaration or tax evasion is determined. Where the consignee can produce documents addressing the alleged discrepancies, fresh proceedings should permit a written reply and supporting material before a decision under applicable GST enactments and rules. The allegations remain open for determination through renewed notice and adjudication, rather than being conclusively decided without hearing the consignee.
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Tax-exclusive bills of quantities prevail over general tender tax clauses, supporting GST reimbursement for public works contractors.
Case-Laws
GST
Tax-exclusive bill of quantities rates prevail over general tender conditions stating that taxes are included in the bid price. GST, as an indirect tax, ultimately falls on the employer where the accepted BOQ expressly excludes taxes; a contractor cannot be denied reimbursement on the basis of inconsistent general clauses. Departmental communications and meeting decisions supported the reimbursement claim. Government circulars also permit revised administrative sanction where project-cost escalation results solely from revised GST rates. GST paid for hospital construction under the tax-exclusive BOQ was therefore required to be reimbursed within three months.
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Actual receipt of goods governs input tax credit claims, requiring cumulative evidence and reasoned verification rather than invoice reliance alone.
Case-Laws
GST
Actual receipt of goods is an independent condition for input tax credit, requiring the claimant to establish eligibility through credible evidence. Supplier registration, tax invoices, portal reflection and banking payments do not conclusively prove receipt, while a supplier's later non-availability at its declared premises does not alone disprove an earlier supply. Input tax credit claims require cumulative evaluation of invoices, e-way bills, transport records and other corroborative material. Adequate adjudication requires verification of that evidence, reasoned findings, and an effective opportunity of hearing; failure to undertake this assessment warrants fresh adjudication without determining the claim on merits.
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Deferred input tax credit under section 16(5) remains available despite GSTR-2A mismatches when supporting records establish genuine business credit.
Case-Laws
GST
Section 16(5) of the CGST Act retrospectively permits input tax credit relating to FY 2017-18 to be claimed through a return filed up to 30 November 2021. A mismatch between GSTR-2A and GSTR-3B is a reconciliation issue and, by itself, does not require reversal where verifiable accounts, invoices and payment evidence establish genuine credit. Banking services received in furtherance of business are not within the blocked-credit categories under section 17(5) of the CGST/UPGST Act and may qualify for input tax credit.
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Curable GST pre-deposit defects require an opportunity to correct cash-ledger allocation before an amnesty appeal is rejected.
Case-Laws
GST
GST amnesty appeals should not be rejected solely because the prescribed cash component of a pre-deposit was debited through the electronic credit ledger rather than the electronic cash ledger, where portal glitches prevented the required cash-ledger debit. Such misallocation is a curable pre-deposit defect when the amount has otherwise been secured. The appellate authority must allow the taxpayer to rectify the cash-ledger component or rebalance the ledger debits, including re-credit of excess electronic credit ledger debit. Following rectification within the stipulated period, the first appeal must be admitted and decided on merits after hearing both sides.
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Input tax credit on retail-shop interiors remains available where the GST component is not capitalised in fixed-asset cost.
Case-Laws
GST
Input tax credit on joinery, carpentry and painting services used for shelves and display fixtures in rented retail shops is available where the services are used in furtherance of business and the GST component is not capitalised. The restriction for construction of immovable property applies only to the extent expenditure is capitalised. Although furnishing expenditure was capitalised as furniture and fixtures, the separately accounted GST was neither included in fixed-asset cost nor subjected to depreciation. The supplier-service classification, not disputed in the show-cause notice, could not be raised later to deny credit. Denial of the disputed credit was unsustainable and was set aside with consequential relief.
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Input tax credit claims require evidence beyond a supplier's later non-existence and unsupported fraud allegations.
Case-Laws
GST
Input tax credit on purchases from a supplier later reported non-existent must be assessed on the totality of evidence. Contemporaneous invoices, transport records, GST records and banking-channel payments require independent verification and cogent rebuttal; a supplier's later non-existence alone does not establish fictitious purchases or non-receipt of goods. Recovery of allegedly wrongful credit under Section 74 requires positive evidence of fraud, wilful misstatement or suppression with intent to evade tax. Non-appearance before authorities or delayed invoice payment followed by proportionate credit reversal with interest does not, by itself, establish those statutory ingredients or justify equal penalty.
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Actual transport movement determines goods-detention liability; acknowledged notice service stands, while release payments await fresh adjudication.
Case-Laws
GST
Section 129 liability for detained goods must be determined from the actual transport movement, including the route, destination and timing; a later e-way bill cannot retrospectively cure a contravention, and later invoices alone cannot establish onward movement. Conflicting interception accounts, incomplete carrier records and unavailable primary material require fresh, reasoned adjudication of the diversion defence. Acknowledged receipt of and response to FORM GST MOV-07 bars a later service objection, but does not remove the duty to consider the defence and grant statutory hearing. Payment to secure release does not conclude liability and must be adjusted or refunded following the fresh determination.
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Post-interception transport documents require credible linkage to goods; unsupported transit claims cannot defeat undeclared-goods penalties.
Case-Laws
GST
Post-interception invoices and bilties require reliable corroboration to establish that physically verified undeclared goods were covered by valid transport documents. Delayed documents were insufficient where they could not be linked to the goods, transaction parties did not acknowledge dealings or establish their identity and business credentials, and discrepancies remained unexplained; the penalty for transporting undeclared goods was therefore sustained. A transit-State defence based on asserted movement to an out-of-State destination also requires credible proof of the destination and underlying transactions. Mere passage through the transit State did not invalidate proceedings, and a precedent involving materially different facts was inapplicable.
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Expired e-way bills trigger GST detention penalties without proving tax-evasion intent when no timely extension or evidence supports delay.
Case-Laws
GST
Section 129(1) treats transportation of goods in contravention of GST requirements as sufficient for detention and penalty; proof of an intention to evade tax is not required because the penalty arises from breach of a civil obligation. Expired e-way bills may therefore attract penalty even for interstate stock transfers where a claimed vehicle breakdown lacks supporting evidence and no timely extension or amendment is sought. Invoices or the stock-transfer character of the movement do not replace a valid e-way bill, and exceptions requiring a valid e-way bill do not apply after expiry. Procedural objections concerning hearing, notices, or forms do not alter the position where a full opportunity to provide explanations and evidence is available before the final fact-finding authority.
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GST refund limitation exclusions preserve unregistered purchasers' claims after cancelled flat bookings, with no unjust-enrichment bar.
Case-Laws
GST
GST refund limitation for an unregistered flat purchaser following cancellation of a construction-linked booking must exclude the period prescribed in Notification No. 13/2022-Central Tax when computing the two-year period under section 54(1). The refund application was therefore within time. Where the developer deposited GST but refunded only the non-tax consideration, the purchaser may claim refund if the GST incidence was borne by the purchaser and the requirements of Statement 8 and Rule 89(2) are met. As the ultimate consumer, the purchaser is not barred by unjust enrichment. Refund was admissible with applicable interest after sixty days from the refund application.
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Compensation Cess ITC refunds require independent inverted-tax-structure eligibility; domestic leather supplies did not justify cash refunds.
Case-Laws
GST
Accumulated Compensation Cess ITC on coal used to manufacture leather products supplied domestically is refundable only where the statutory conditions for an inverted tax structure refund are independently met. Eligibility to avail the credit, including the absence of a blocked-credit restriction, does not itself establish entitlement to a cash refund. Although Compensation Cess credit is usable only against cess liabilities, its inability to be utilised against other liabilities creates no separate refund right. Clarifications and precedents concerning zero-rated or export supplies do not support domestic-supply refund claims. The order granting refund was set aside and the original refund rejections were restored.
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IGST refunds for exports under manual shipping bills fall within Customs processing jurisdiction, requiring consideration under Rule 96(3).
Case-Laws
GST
Rule 96(3) assigns processing of IGST refunds on exported goods, including goods covered by manual shipping bills, to the Customs system or the proper Customs officer after receipt of information on a valid Form GSTR-3B return. Where the GST Department disclaims jurisdiction to sanction the refund, Customs cannot reject the claim by asserting that it falls within the GST Department's jurisdiction. Customs must process the claim and sanction any admissible IGST refund with applicable interest in accordance with law.
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Meaningful hearing in detention penalty proceedings requires reasoned adjudication; payment for release does not waive statutory challenge.
Case-Laws
GST
Penalty adjudication under section 129(3) requires a meaningful hearing under section 129(4) and a reasoned order addressing the taxpayer's explanation and consignment documents. Determining penalty the day after a notice allowed seven days to respond, using FORM GST MOV-09 containing unselected alternatives and drafting placeholders, fails those requirements. Payment through FORM GST DRC-03 to obtain release of detained goods neither cures incomplete adjudication nor waives the statutory challenge. Where FORM GST MOV-07 states an intelligible allegation, fresh adjudication should proceed within the existing notice's scope, with merits of the proposed penalty remaining open.
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GST interest computation requires month-wise ledger verification, while pre-notice voluntary payment protects against penalty for inadvertent turnover reporting omissions.
Case-Laws
GST
GST interest remains payable despite voluntary tax payment before a show cause notice, but must be calculated month by month by identifying the tax liability, due date, actual payment date, and amount payable through the Electronic Cash Ledger under section 50 read with rule 88B. Interest calculated on the entire liability without verification of the electronic cash and credit ledgers requires fresh computation. Where omitted B2C turnover was accounted for, disclosed in the annual return, and fully paid before notice, section 73(5) applies; penalty under section 73(6) is unsustainable. The interest demand was remitted for recomputation and the penalty was set aside.
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E-way bill accuracy in diverted transit sales determines Section 129 penalties despite no independent proof of tax evasion.
Case-Laws
GST
Section 129(1) of the CGST Act imposes civil penalty for substantive contraventions of transit movement-document requirements without requiring independent proof of intent to evade tax. Authorities must nevertheless assess the taxpayer's explanation and distinguish material discrepancies from minor or technical errors. A sale during transit may occur without prior physical receipt by an intermediary, but the continuing movement must be supported by a valid e-way bill accurately stating the actual origin and destination. E-way bills that do not cover the diverted route, falsely identify the dispatch point, or have expired may constitute substantive non-compliance. Payment through DRC-03 to secure release of goods does not conclusively admit liability or waive statutory appeal rights and may be credited against any liability.
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