Author: admin_gst

Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Madhya Pradesh
GST
Dated:- 27-11-2024

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.
2. The above-said funct

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ith 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 Madhya Pradesh.
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
(a) a copy (hard/soft) of the appointment confirmation e-mail

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Advisory for Reporting TDS Deducted by scrap Dealers in October 2024
GST
Dated:- 27-11-2024

As per Notification No. 25/2024-Central Tax, effective from 10.10.2024, any registered person receiving supplies of metal scrap classified under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from another registered person, is required to deduct TDS under Section 51 of the CGST Act, 2017.
2.In this regard various tickets have been received on the issue

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Dispute over GST registration cancellation highlights natural justice violation due to lack of proper notification and communication.
Case-Laws
GST
Confusion regarding cancellation of GST registration order – violation of principles of natural justice. No evidence of proper cancellation order or communication to Petitioner. Petitioner confused about whether remarks constituted order. Show cause notice required reply and personal hearing, but Petitioner neither replied nor attended. Peti

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Uttar Pradesh Motor Vehicle Taxation Act: Court Upholds Purchase Condition for Exemption.
Case-Laws
GST
The High Court upheld the validity of the exemption notification dated 02.03.2023 issued u/s 3 of the U.P. Motor Vehicle Taxation Act, 1997. The notification imposed a condition that the vehicle must have been purchased in the State of Uttar Pradesh to avail the exemption. The Court held that Section 3 does not restrict the State Government's power to impose conditions for granting ex

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Appeal Dismissed: Court Upholds Deadline for Filing Under CGST/SGST Acts; Illness Claim Deemed Unconvincing.
Case-Laws
GST
The petitioner filed appeals against orders under CGST/SGST Acts after a delay of four years. The court held that it cannot normally exercise jurisdiction under Article 226 to extend the time limit for filing appeals u/s 107 of the CGST/SGST Acts, as per the Supreme Court's rulings in Singh Enterprises and Ketan V. Parekh cases. Although Section 5 of the Limitation

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Fabric manufacturer wins tax case over CENVAT credit denial due to lack of proper hearing.
Case-Laws
GST
The petitioner challenged the order imposing tax liability and penalty for wrongful availment of CENVAT credit, alleging violation of principles of natural justice and non-consideration of explanations. The HC quashed the order, observing non-application of mind by authorities, non-production of relied-upon documents to petitioner, and failure to examine petitioner's explanations sup

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GST hike dispute: Petitioner gets relief, gov't entity to reimburse 6% GST paid from Jan-Sept 2022.
Case-Laws
GST
The petitioner sought reimbursement of the additional 6% GST paid from 01.01.2022 to 30.09.2022, as the respondents were paying bills with 12% GST while the petitioner was paying 18% GST. The court held that Respondent No. 4, the State GST Department, confirmed the GST rate was enhanced from 12% to 18%, which Respondent No. 2, a government entity, is liable to pay. Responden

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GST Circular allows filing rectification for input tax credit claims through returns.
Case-Laws
GST
Interpretation of Section 16(5) of CGST Act regarding input tax credit. Circular issued by Government of India No. 237/31/2024-GST dated 15th October 2024. Petitioner entitled to file rectification application for consideration of input tax credit claim made in return filed, as indicated from demand-cum-show cause notice. Petitioner can file rectification application within stipulated tim

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Court Finds GST Penalty Order Illegal, Orders Release of Goods with Payment; Invoice and E-Way Bill Not Disputed.
Case-Laws
GST
In the present case, the authorities levied penalty u/s 129(1)(b) of the Central Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act. However, the court observed that the authorities neither challenged the invoice nor the e-way bill produced by the petitioner, nor questioned the purchase of areca nuts from a third

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Personal hearing mandatory before heavy penalty order; natural justice violated.
Case-Laws
GST
Principles of natural justice violated as petitioner denied opportunity of hearing before passing adverse order. Coordinate bench ruling in BHARAT MINT case affirmed – assessing authority mandated to afford opportunity of personal hearing, irrespective of assessee's choice marked. In context of heavy civil liability assessment order, minimal opportunity of hearing essential to ensure reasoned

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Provisions restricting input tax credit on goods/services for construction upheld.
Case-Laws
GST
Writ petition challenging validity of Section 17(5)(d) of CGST Act, 2017 and Section 17(5)(d) of TNGST Act, 2017 dismissed. Supreme Court recently upheld validity of said provisions in Chief Commissioner of Central Goods and Service Tax and Others Vs. M/s.Safari Retreats Private Limited. High Court rejected challenge against provisions following Supreme Court's decision declaring law.
TM

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Goods Inspection Matches E-Way Bill, Lack of Tax Evasion Intent Quashes Penalty.
Case-Laws
GST
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

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Goods matched documents like e-way bill and invoices; detention order quashed despite description mismatch.
Case-Laws
GST
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 mat

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Hostel accommodation services not GST-exempt; taxed at 18% when combined with food. Providers must register if turnover exceeds threshold.
Case-Laws
GST
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 'resid

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Online Appeal Restored After Court Rules Against Dismissal for Lack of Certified Physical Copy of Assessment Order.
Case-Laws
GST
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

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GST Exemption Denied for GTA Services Without Consignment Notes to Unregistered Foreign Entities.
Case-Laws
GST
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

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Electricity Surcharge for Open Access Consumers Taxable Under CGST Act; Input Tax Credits Allowed for Capitalized Goods.
Case-Laws
GST
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. I

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Court Quashes GST Levy on Chit Funds; Writ Petition Deemed Maintainable Despite Alternative Adjudication Pathways.
Case-Laws
GST
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 Su

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Court Overrules Harsh Dismissal of Tax Appeal Due to Spouse's Critical Illness; Restores Petitioner's Rights.
Case-Laws
GST
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 o

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Court Finds Breach of Natural Justice in GST Case Due to Inadequate Notice; Order Set Aside for Further Response.
Case-Laws
GST
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 t

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Aggregator Must Collect GST on Full Invoice Amount for Lab Services, Not Just Margin, and Is Not Exempt as an E-commerce Operator.
Case-Laws
GST
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 h

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GST appeals allowed despite cash payment shortfall, awaiting Supreme Court's verdict.
Case-Laws
GST
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 Ledg

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Rectification: Show Cause Notice quashed for period pre 9/10/2018 due to Notification 54/2018's prospective application.
Case-Laws
GST
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

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HC grants interim relief in GST show cause notice case, extends reply time.
Case-Laws
GST
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 week

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Excessive delay in issuing show cause notice & adjudication order violates natural justice; notice quashed, proceedings restrained.
Case-Laws
GST
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 pr

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