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Case-Laws – GST – Highlights – Principles of natural justice and fair play were violated when the impugned order was issued without granting the petitioner an opportunity for a hearing. Despite the delay in responding to the show cause notice, the petitioner should be allowed to file a reply and be heard, subject to paying costs of Rs. 50,000/-. The respondent must dispose of the show cause notice expeditiously after considering the reply, within eight weeks of receiving it. The petition is 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 set aside the impugned tax demand order due to violation of principles of natural justice, as the petitioner was not provided a reasonable opportunity to contest the tax demand on merits. The petitioner was unaware of the proceedings culminating in the order, which related to a mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. The court permitted the petitioner to submit a reply to the show cause notice after remitting 10% of the disputed tax demand, in the interest of justice, to contest the tax demand on merits. The petition was disposed of on this condition. – 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 is required to pay GST on the charges paid to Indian Railways for various services received, as the applicant is the recipient of these services from Indian Railways, and not a pure agent. The applicant has sub-contracted the task of paying these charges to the operator, who is required to pay the applicant along with GST as per their agreement. The charges paid to Indian Railways do not qualify as pure agent services u/r 33 of CGST Rules, 2017, as the applicant has not procured any additional services. Therefore, the applicant is liable to pay GST on the taxable supplies received from Indian Railways at the following rates: Registration Fee @ 18%, Haulage Charges @ 5%, Right to Use (RU) @ 18%, Stabling Charges @ 18%, Station User Fee @ 5%, Cancellation Charges @ 5%. GST will also be charged on the Security Deposit amount if it is adjusted against any of the above charges, at the respective rate applicable to that charge. – 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:- 15-10-2024 – News – Important advisory for GSTR-9/9C Dated:- 15-10-2024 – Starting FY 2023-24, GST system will auto-populate eligible ITC for domestic supplies (excluding reverse charge and imports ITC) from table 3(I) of GSTR-2B to table 8A of GSTR-9 . These changes in GSTR-9 and 9C for the FY 2023-24 will be available on the GST portal from today i.e.,15th October 2024 onwards. Further, a validation utility will be executed progressively (for validation

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Goods and Services Tax – GST Dated:- 15-10-2024 – News – Attention – Advisory on IMS Dated:- 15-10-2024 – Invoice Management System (IMS) is made available to taxpayers from Today, 14th Oct, 2024. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14th Oct, 2024. The first GSTR-2B would be gen

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Circulars – GST – Highlights – This circular clarifies the scope of regularization on an “as is” or “as is, where is” basis mentioned in previous GST circulars issued based on GST Council recommendations. It states that when genuine doubts arise due to competing entries with different rates or diverse interpretations, leading to some suppliers paying lower GST rates (including nil rates) and others paying higher rates, the Council recommends regularizing past payments on an “as is” basis. This means accepting the lower rate paid, without refunds for those who paid higher rates. The intention is to fully discharge tax liability based on the tax position taken by the taxpayer in filed returns. If two competing rates existed and the lower rate was paid, that payment is treated as tax fully paid for the regularized period, without requiring differential payment. Illustrations clarify scenarios like competing 5% and 12% rates, exemption versus 5% rate, and non-payment versus lower rates paid. The circular aims to provide clarity on the scope of “as is” regularization based on the Council's recommendations. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – Highlights – This circular clarifies GST rates and classification for certain goods based on recommendations of the GST Council's 54th meeting. Key points: Extruded/expanded savoury snacks under HS 1905 90 30 attract 12% GST prospectively from 10.10.2024, previously 18%. Roof mounted air conditioning units for railways classified under HS 8415 attract 28% GST. Car seats under HS 9401 attract 28% GST prospectively from 10.10.2024, previously 18%. Motorcycle seats under HS 8714 continue attracting 28% GST. Past period tax liabilities remain unaffected for the revised rates. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – Highlights – This circular clarifies various GST-related issues based on recommendations of the 54th GST Council meeting. Key points are: GST at 18% applicable on affiliation services by universities to colleges; affiliation services to schools by educational boards/councils taxable except for government schools which are exempt; DGCA-approved flying training courses by approved Flying Training Organizations exempt; 5% GST on transport of passengers by helicopter on seat share basis regularized retrospectively; 18% GST on helicopter charter services clarified; incidental services like loading/unloading by Goods Transport Agencies part of composite transport supply; import of services without consideration by foreign airlines from related entities exempt prospectively and regularized retrospectively; Preferential Location Charges part of composite construction supply; certain support services by electricity transmission/distribution utilities exempt prospectively and regularized retrospectively; theatrical rights granted by distributors to exhibitors regularized retrospectively at 18% GST rate. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of the WBGST Rules, 2017, where exporters had initially imported inputs without paying integrated taxes and compensation cess by availing benefits under certain notifications, but subsequently paid the IGST, compensation cess, and interest on such imported inputs. It states that if the Bill of Entry for import is reassessed by Customs authorities to reflect the payment of IGST and compensation cess, the refund of IGST paid on exports shall not be considered in contravention of rule 96(10). The circular provides a retrospective clarification on the applicability of the Explanation inserted in rule 96(10) through a notification, allowing regularization of such refunds by subsequent payment of taxes and reassessment. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – The circular clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. It addresses three scenarios: whether the service qualifies as an intermediary service u/s 2(13) of the IGST Act, whether it relates to goods made available by the recipient u/s 13(3)(a), or whether it directly relates to immovable property u/s 13(4). The circular concludes that data hosting services do not fall under these provisions. As the place of supply does not fit specific sections 13(3) to 13(13), the default Section 13(2) applies, making the recipient's location the place of supply. Consequently, such services provided to overseas cloud computing entities can be considered export of services u/s 2(6) of the IGST Act, subject to fulfilling other conditions. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This trade circular clarifies the availability of input tax credit (ITC) on demo vehicles used by authorized dealers for motor vehicles. The key points are: ITC is available on demo vehicles used for promoting further supply of similar vehicles, as it falls under the exclusion in Section 17(5)(a)(A) of the WBGST Act. However, ITC is not available if demo vehicles are used for staff transportation or the dealer merely acts as an agent for the manufacturer. If demo vehicles are capitalized by dealers, ITC is available subject to Section 16(3) regarding depreciation claims under Income Tax Act. Upon subsequent sale of capitalized demo vehicles, dealers must pay tax u/s 18(6) and Rule 44(6) of WBGST Rules. The circular provides clarity on ITC eligibility for demo vehicles based on their usage and accounting treatment by authorized dealers. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This trade circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points: Advertising agencies providing comprehensive services from design to media procurement are not intermediaries under IGST Act, but principal service providers to foreign clients. The place of supply is the location of the foreign client recipient outside India, qualifying as export of services. However, if the agency merely facilitates media space procurement between foreign client and media owner, acting as intermediary, the place of supply is the agency's location in India u/s 13(8)(b) of IGST Act. The foreign client's representative in India or target audience cannot be considered recipients. Advertising services do not qualify as performance-based services u/s 13(3) of IGST Act. – 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 impugned order violated principles of natural justice by failing to provide an opportunity of hearing to the Petitioner, despite a written request, contravening Section 75(4) of the MGST Act. The order was made without adhering to the statutory requirement of granting a hearing where an adverse decision is contemplated against the person chargeable with tax or penalty. Coordinate Benches in similar cases have set aside orders that disregarded Section 75(4)'s mandate of hearing the petitioners. Consequently, the impugned order dated 17 January 2024 and the subsequent recovery notice dated 6 September 2024 were quashed, and the petition was 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 – The High Court quashed the impugned summary order passed without issuing Form DRC-01 show cause notice to the petitioner, violating principles of natural justice. The matter was remanded to the respondent authorities for de novo adjudication after providing an opportunity of hearing to the petitioner. Fresh order to be passed within 12 weeks in accordance with law. 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

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Case-Laws – GST – Highlights – Petitioner's GST license was cancelled for non-payment of tax dues. Considering petitioner's counsel's submission that returns were filed and tax along with interest was paid, the court directed the respondent authority to renew petitioner's GST license within 10 days. If any other amount is due, the authority shall communicate to petitioner, who shall pay within 7 days from communication. The court disposed of the petition. – 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 addressed the issue of condonation of delay in filing an application and dismissal of an appeal on the ground of suppression of material facts regarding the cancellation of GST registration. The court referred to the Supreme Court's observation in Arunima Baruah case, which held that suppression must be of a material fact relevant for determining the lis or granting relief. The court found that while the fact of fresh registration was relevant, it was not material enough to affect the determination of the lis between the parties. Consequently, the High Court order dismissing the appeal could not be sustained, and the writ 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 court set aside the impugned order passed by the respondent u/s 73 of the Tamil Nadu General Sales Tax Act, 2017, imposing a liability of Rs. 10.72 lakhs towards tax, interest, and penalty on the petitioner due to a discrepancy between Forms GSTR 3B and GSTR 1. The petitioner claimed a violation of natural justice as they were unaware of the proceedings initiated by the respondent, with communication sent only through the portal. The court found sufficient materials to substantiate the petitioner's defense that there was no mismatch between the outward supplies turnover declared in GSTR-1 and GSTR-3B. Consistent with a previous case, the matter was remanded to the respondent for fresh consideration, subject to the petitioner paying 10% of the total demand within four weeks. The petition was allowed by way of remand. – 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 summary highlights the reversal of Input Tax Credit (ITC) due to the non-electronic filing of Form GST ITC-02 by the transferor company. The key points are: Section 18(3) of the CGST Act allows transfer of unutilized ITC in case of business transfer, subject to prescribed rules. The show cause notice alleged contravention of Section 18(3) and Rule 41(1) for availing ITC without electronic filing of Form GST ITC-02. However, the GST portal had functionality issues during the relevant period, preventing electronic filing. Courts in similar cases involving the petitioner held that technical glitches on the department's part cannot defeat statutory rights. The impugned show cause notice was set aside, and the department was directed to consider the manually filed forms expeditiously. – 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:- 14-10-2024 – News – The government has issued Notification 25/2024-Central Tax, on October 9, 2024 .under GST Section 51 of the CGST Act, 2017 mandating compliance by the businesses dealing with Metal Scrap. The GST portal will soon be updated to enable compliance of registration through FORM GST REG-07 by these category of registered persons. Thanking You, Team GSTN – News – Press release – PIB Tax Management India – taxmanagementindia – taxmanagement –

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Notifications – GST – Highlights – The key points covered in the legal document are: 1. It introduces new forms (GST SPL-01 to GST SPL-08) for taxpayers to apply for waiver of interest and penalty u/s 128A of the GST Act. 2. Form GST SPL-01 is for making an application to seek waiver, providing details of the order, tax periods, and amount of tax, interest, and penalty demanded. 3. Form GST SPL-03 is a notice issued by the tax officer seeking clarification or raising objections on the application filed in SPL-01. 4. Form GST SPL-04 is for the taxpayer to file a reply to the notice issued in SPL-03. 5. Form GST SPL-05 is the order issued by the tax officer approving or partially approving the waiver application. 6. Form GST SPL-06 is the order issued by the appellate authority approving or partially approving the waiver application in case of an appeal. 7. Form GST SPL-07 is the order rejecting the waiver application filed in SPL-01. 8. Form GST SPL-08 is an undertaking to be provided by the taxpayer to not file an appeal against the appellate order in SPL-06 for restoration of the original. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – This notification amends the Central Goods and Services Tax Act, 2017 to mandate tax deduction at source (TDS) compliance for supply of metal scrap between registered persons. It inserts a new clause (d) specifying that any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from another registered person will be subject to TDS provisions. The third proviso is also amended to exclude the newly added clause (d) from the exemption granted to supplies between specified persons u/s 51(1). The notification comes into effect from October 10, 2024. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – The notification amends the earlier Notification No. 5/2017-Central Tax to exclude persons engaged in the supply of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from the exemption from GST registration if their entire supply is under reverse charge mechanism. The amendment comes into force from 10th October 2024. It mandates GST registration for metal scrap suppliers, irrespective of the applicability of reverse charge mechanism on their supplies. – 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 – Non-service of show cause notice violated principles of natural justice. Respondent imposed tax liability without providing opportunity and documents to petitioner for defense. Court remanded matter to respondent for fresh consideration after petitioner pays 10% of disputed tax amount, setting aside earlier order to maintain consistency with previous cases allowing petitioner to present defense. Petition allowed by way of remand for reconsideration after partial tax payment by petitioner. – 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 failed to establish grounds for invoking Section 74 of CGST/SGST Acts regarding suppression allegations. Disputed questions of fact cannot be adjudicated through writ petition under Article 226. Petitioner directed to pursue statutory remedies for adjudication. Rectification application was properly rejected after providing opportunity. Limitation period for appeal against original order excluded from date of rectification application till disposal of writ petition. – 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 examined the recovery of wrongly availed credit with penalty for wrongful availment during transition to GST regime. The petitioner's branches were not registered, and there was no correlation between invoices and claims made. The Court analyzed the registration status u/r 9 of Central Excise Rules, 2002, which allows exemption granted through a 2010 notification. The petitioner produced a centralized registration certificate covering various branches. The correlation between claims and invoices was remanded to the original authority for verification after setting aside the orders. The authorities were directed to determine credit eligibility after verifying branch registration coverage. The writ petition was disposed of through remand. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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