Author: admin_gst

Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Haryana, Manipur, Meghalaya and Tripura
GST
Dated:- 10-12-2024

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1.Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.

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ioned in point 3(a), she/he can proceed with the application as per the existing process.
5.However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Haryana, Manipur, Meghalaya and Tripura.
7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
8.At the time of the visit of GSK, the applicant is required to carry the following details/documents
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Transitional CENVAT credit allowed despite pending show-cause notice under GST regime.
Case-Laws
GST
The High Court allowed the petitioner's writ petition and set aside the impugned order denying transition of CENVAT credit of Rs.1,39,31,604/- u/s 140(1) of the CGST Act. The court held that mere issuance of a show-cause notice, subsequently kept in abeyance, cannot disentitle the petitioner from claiming transition of the available CENVAT credit as on 30.06.2017 to the GST regime. The C

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High Court allows Input Tax Credit claim despite e-way bill mismatch; directs to pay remaining tax within 2 weeks.
Case-Laws
GST
The High Court set aside the impugned order rejecting the petitioner's claim of Input Tax Credit (ITC) u/s 16(4) of the GST Act due to a discrepancy between the e-way bill and GSTR-3B. The petitioner was directed to deposit the entire tax due of Rs. 87,129/- on issues other than the rejection of ITC invoking Section 16(4) within two weeks from the receipt of t

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High Court Allows Retrospective GST Refunds; Rules Amendment to Refund Formula Clarificatory, Dismissing Prospective Limits.
Case-Laws
GST
The High Court allowed the petition and quashed the impugned order rejecting the petitioner's refund application for unutilized input tax credit. The court held that the Notification No. 14/2022 amending Rule 89(5) of the GST Rules is clarificatory and curative in nature, rectifying the anomaly in the refund formula. Relying on Supreme Court preceden

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Charitable institution's income prima facie not taxable under CGST Act for lack of business activities.
Case-Laws
GST
The High Court prima facie held that the income of the petitioner, a charitable institution registered u/s 12AA of the Income Tax Act, 1961, cannot be assessed to tax under the Central Goods & Services Tax Act, 2017 (CGST Act). The activities undertaken by a charitable institution would not prima facie fall within the ambit of activities undertaken in the course of or in

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Case-Laws – GST – Highlights – The High Court held that the negative blocking of the Electronic Credit Ledger (ECL) of the writ petitioner by the respondents, purportedly exercising powers u/r 86A of the Central Goods and Services Tax Rules, 2017, cannot be sustained. The issue of negative blocking stands conclusively decided in favor of the writ petitioner in light of the judgment in Best Crop Science Pvt. Ltd. v. Principal Commissioner, where it was held that orders disallowing debit from the ECL in excess of the available Input Tax Credit at the time of passing such orders (referred to as Negative blocking) are set aside. Consequently, 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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Tax Authority's Negative Blocking of Taxpayer's Credit Ledger Struck Down.
Case-Laws
GST
The High Court held that the negative blocking of the Electronic Credit Ledger (ECL) of the writ petitioner by the respondents, purportedly exercising powers u/r 86A of the Central Goods and Services Tax Rules, 2017, cannot be sustained. The issue of negative blocking stands conclusively decided in favor of the writ petitioner in light of the judgment in Best Crop Science Pvt. Ltd. v. Principal Comm

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Taxpayer's plea dismissed; instructed to appeal against assessment order to Appellate Authority.
Case-Laws
GST
The High Court dismissed the petition on the ground of availability of an alternative statutory remedy of appeal against the assessment order. The petitioner challenged the assessment order citing limitation and violation of principles of natural justice. However, the Court held that whether the extended period of limitation applies and principles of natural justice were violat

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Insurance premium & reinsurance commission not 'supply' – Refund due on deposits made pending litigation.
Case-Laws
GST
The High Court held that the co-insurance premium and reinsurance commission would not be considered as supply and thus, the petitioners are entitled to a refund. The amounts deposited by the petitioner were not towards discharge of tax liability, but merely deposits pursuant to the court's order pending final adjudication. Since the utilization of these amounts for ta

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Improper revival of tax proceedings after initial satisfaction violates natural justice principles.
Case-Laws
GST
The High Court held that the proceedings initiated u/s 74 of the CGST Act, 2017 were vitiated as the Proper Officer had previously dropped the proceedings u/s 61(2) after finding the reply satisfactory. Initiating proceedings u/s 74 after dropping Section 61 proceedings violated the principles of natural justice. Consequently, the High Court quashed the order dated 14.06.202

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Petitioner's challenge to tax demand stayed pending constitution of appellate tribunal.
Case-Laws
GST
The High Court disposed of the petitioner's appeal challenging the impugned order and consequent summary of demand in Form GST APL-04. The court held that the petitioners may file an appeal once the president or state president of the appellate tribunal constituted u/s 107 of the Act of 2017 assumes office. Subject to depositing 20% of the remaining disputed tax amount, if not already d

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Tax Assessment Orders Voided for 2017-2020 Due to Limitation Issues and Lack of Personal Hearings Under GST Acts.
Case-Laws
GST
The High Court allowed the petitions challenging the assessment orders for 2017-18, 2018-19, and 2019-20 on the grounds of limitation and violation of principles of natural justice. Regarding limitation, the court held that the extended due dates for filing returns fell within the limitation period after excluding the period from 15.03.2020 to 28.02.2022 as per

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Discrepancies in notice & assessment order violated natural justice; petitioner granted chance to present case.
Case-Laws
GST
The High Court set aside the impugned order and treated it as a Show Cause Notice due to discrepancies between the Show Cause Notice and the assessment order, thereby violating principles of natural justice by denying the petitioner an opportunity to present their case. The petitioner was granted four weeks to file objections with supporting documents, which the

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Court Dismisses Petition; CAG Can't Audit Private Firms, Extends Limitation for Suppression Allegations.
Case-Laws
GST
The High Court dismissed the petition filed by the Petitioner challenging the show cause notice issued by the Respondents. The Court held that the Comptroller and Auditor General (CAG) or its officials do not have jurisdiction to audit private companies like the Petitioner. Since the impugned show cause notice was not based on any audit undertaken by CAG/CERA, the Court

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Court Rules on Tax Liabilities for Cross-State Construction Projects in Telangana and Maharashtra.
Case-Laws
GST
The High Court held that for a works contract involving construction of a barrage across two states, Telangana and Maharashtra, the place of supply would be determined proportionately based on the value of services rendered in each state as per Section 12(3) of the IGST Act. Consequently, the supply would qualify as an intra-state supply u/s 8 of the IGST Act in proportion to

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Bank's improper use of Escrow fund for loan recovery led to GST non-payment, Court allows writ challenging it.
Case-Laws
GST
The High Court held that the writ petition challenging the respondent Bank's actions in not releasing amounts deposited in an Escrow Account for payment of statutory liabilities like GST from 2017 onwards is maintainable, despite other disputes being adjudicated before the Debts Recovery Tribunal. The Bank's adjustments to the receivables in the Escrow Account for

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Lessor Must Pay 18% GST on Leasing Commercial Property to Government; Residential Lease Exemptions Not Applicable.
Case-Laws
GST
The Advance Ruling Authority held that the applicant, being the lessor and registered supplier of services for leasing a commercial property, is liable to remit Goods and Services Tax (GST) on the lease consideration u/s 9 read with Section 15 of the GST Act. The leasing of a commercial property to the Government of Andhra Pradesh for setting up the Institutio

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Hydraulic Firm's Imported Machinery ITC Claim Rejected Due to Bill Entry Discrepancy.
Case-Laws
GST
The Appellate Authority for Advance Ruling (AAR) ruled that R.V. Hydraulic Services is not eligible to claim Input Tax Credit (ITC) on the Integrated Goods and Services Tax (IGST) paid for the imported machinery (Davi Full Hydraulic Plate Roll). The Bill of Entry was in the name of M/s Promau SRL, C/o IMTEX, and not in the name of the applicant. As per Section 16(2)(a) read with Rule 36(1

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Promotional freebies denied input tax credit, CGST Act upheld.
Case-Laws
GST
The High Court dismissed the petition, upholding the denial of input tax credit availed on goods purchased by the petitioner for sales promotion of manufactured goods for the respective assessment years. Section 17(5)(h) of the GST enactments prohibits input tax credit on goods disposed of by way of gift or free samples. The court held that the petitioner was not entitled to avail input tax credit on T-shirts a

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Excess Credit Claim Quashed: Inadvertent IGST Omission Not Wrong Availment.
Case-Laws
GST
The High Court allowed the petition and quashed the order, declaring that the appellant shall not be seen as having availed excess credit for initiating proceedings u/s 73 of the GST Act. The case revealed no wrong availment of credit, and the appellant's mistake of omitting to mention IGST figures separately in Form GSTR 3A was inadvertent and technical, insignificant as there was no outward suppl

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High Court Revokes Bail, Clarifies Prosecution Criteria Under CGST Act for Misuse of Input Tax Credit.
Case-Laws
GST
The High Court cancelled the bail granted to the respondent Gautam Garg, finding that the lower court had misconstrued the facts and legal position u/s 132 of the CGST Act. The Court held that the absence of material indicating the accused as the manager of the firms is not essential for prosecution u/s 132, which covers those who “cause to commit” offenses related to ava

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Taxpayers get relief: Delayed input tax credit allowed for 2017-2021 under amended CGST Act.
Case-Laws
GST
The High Court allowed the writ petition and set aside the impugned order. The matter was remitted back to the respondent authority to pass a fresh order on merits in accordance with the statutory amendment of Section 16(5) of the CGST Act, 2017. Section 16(5) permits belated availing of input tax credit for the assessment years 2017-2018 to 2020-2021, which was notified by the Cen

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Tax evasion case dismissed: Trader failed to file GSTR-3B & pay GST despite self-assessing in GSTR-1. Court: No discretion allowed.
Case-Laws
GST
The High Court dismissed the writ petition. The petitioner failed to file GSTR-3B returns and discharge the tax liability, despite having self-assessed and filed GSTR-1. The court held there was no scope for exercising discretion by extending the payment period, as the petitioner ought to have filed GSTR-3B and paid the tax. Furthermore, more

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Unfair tax assessment quashed due to lack of proper notice & hearing.
Case-Laws
GST
The High Court set aside the impugned order of assessment due to violation of principles of natural justice as the show cause notice and the order were not served properly to the petitioner. The petitioner was directed to deposit 25% of the disputed tax within four weeks and submit objections along with supporting documents within four weeks from receipt of the order. The respondent was directed to consi

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Petitioners' appeal against profiteering determination rejected; conditional stay on 50% deposit.
Case-Laws
GST
The High Court held that the petitioners have no right of appeal against the determination made by the authority regarding the profited amount u/s 171 of the CGST Act. However, as an interim relief, the Court granted a conditional stay, subject to the petitioners depositing 50% of the profited amount, excluding interest, within 8 weeks. The Court observed that granting such co

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