Author: admin_gst

HC allows transitional credit carry forward but interest payable, quashes penalty.
Case-Laws
GST
The HC held that transitional Cenvat Credit carried forward qualifies as “input tax credit” under the CGST Act. Interest u/s 50(3) is payable for wrongly availing and utilizing such credit. However, imposing penalty u/s 122(2)(b) read with 74(1) requires evidence of fraud or willful misstatement, which was absent as the petitioner acted under a bona fide belief. While upholding interest liab

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Assessing officer's order quashed for violating natural justice principles.
Case-Laws
GST
HC allowed petition – Assessing officer's order violated principles of natural justice by denying opportunity to petitioner to present defense – Failure to serve show cause notice rendered proceedings flawed – Appeal remedy denied due to delay caused by lack of knowledge of order – Procedural requirements mandatory, non-compliance invalidates actions – Fair opportunity must be given to all parties

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Cancelled GST registration restored if statutory dues paid till cancellation.
Case-Laws
GST
HC allowed petition for restoration of cancelled GST registration. Petitioner required to comply wi

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Validity of summary SCN: Impugned GST order quashed for lack of proper show cause notice.
Case-Laws
GST
The HC quashed the impugned order dated 14.12.2023 for violation of principles of natural justice. The respondent failed to issue a proper and prior show cause notice prescribed u/s 73(1) of the Assam Goods and Services Tax Act, 2017 before passing the order. Mere issuance of a summary of show cause notice in Form GST DRC-01 was held to be non-compliance with Section 73(1) read with R

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Proper Show Cause Notice mandatory for tax determination under GST Section 73.
Case-Laws
GST
The HC held that the Summary of Show Cause Notice (SCN) along with the attachment containing tax determination cannot be considered a valid initiation of proceedings u/s 73 without issuance of a proper SCN. The issuance of SCN and Statement of tax determination by the Proper Officer are mandatory requirements in addition to the Summary in GST DRC-01 and DRC-02. The impugned orders were contrary

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Writ petition allowed; order set aside for violating natural justice, exceeding notice.
Case-Laws
GST
Writ petition maintainable despite alternative remedy due to violation of principles of natural justice and lack of jurisdiction. Impugned order set aside by HC for non-application of mind to petitioner's objection and traversing beyond show cause notice in contravention of Section 75(7) of the Act. Failure to consider reply vitiates proceedings under settled law. Petition disposed of.<

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Deceased person's assessment order quashed as nullity due to lack of jurisdiction.
Case-Laws
GST
HC quashed assessment order issued against deceased person as nullity. Order made in name of d

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Madras HC quashes order for violating natural justice principles, remands matter.
Case-Laws
GST
The HC quashed the order for violating principles of natural justice as the Adjudicating Author

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Notified Area Authority, Vapi not 'local authority' for GST exemption.
Case-Laws
GST
The HC held that the review application was partly allowed. There was no mistake apparent on record regarding the application of the Supreme Court decision and the definition of “local authority” under the GST Act. The Notified Area Authority, Vapi does not qualify as a “local authority” or “governmental authority” for GST exemption on pure services or supply of goods. Review jurisdiction cannot be exer

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Petition dismissed, appeal remedy available under CGST Act Section 107.
Case-Laws
GST
The HC held that the petition was not maintainable as the petitioner had an alternative efficacious remedy of appeal u/s 107 of the CGST Act, 2017. The absence of a corresponding state notification did not render the central N/N. 56/2023-Central Tax dated 28.12.2023, issued u/s 168-A of the CGST Act, ultra vires. The petitioner failed to raise any ground worth consideration, and the HC dismissed the pe

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Refund: Amended Rule 89(5) formula applies retrospectively, CBIC circular quashed.
Case-Laws
GST
Petitioners entitled to refunds under amended Rule 89(5) formula retrospectively; CBIC circula

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CBIC mandates explaining specific grounds of arrest, obtaining acknowledgment.
News
GST
GST officers must explain 'grounds of arrest' to offenders, obtain written acknowledgement: CBIC modified guidelines. As per Delhi HC order in Kshitij Ghildiyal vs DGGI case, following SC judgments, CBIC mandated explaining specific grounds of arrest to accused, not just general reasons, and obtaining written acknowledgment in arrest memo annexure, distinguishing grounds from reasons as per SC.
T

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Advisory for Waiver Scheme under Section 128A
GST
Dated:- 14-1-2025

1. Taxpayer's attention is invited to the advisory on the above subject issued by GSTN on 29.12.2024. The link for the said advisory is given here:
* https://services.gst.gov.in/services/advisoryandreleases/read/564
2. It is to inform that both Forms GST SPL 01 and GST SPL 02 are available in the GST portal and the taxpayers are advised to file applications under waiver scheme.
3. One of the eligible conditions for filing application under waiver scheme is to withdraw the appeal applications filed against the demand order/notice/statement for which waiver application is to be submitted. In this regard, it is to inform that for the appeal applications (APL

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Generation Date for Draft GSTR 2B for December 2024
GST
Dated:- 14-1-2025

This is to inform you that, in light of the extended due dates for filing GSTR-1 and GSTR-3B returns for the month of December 2024 (Quarter Oct-Dec 2024) as per Notifications No. 01/2025 and 02/2025 dated 10th January 2025, the Draft GSTR-2B for the month of December 2024 (Quarter Oct-Dec 2024) will now be generated on 16th January 2025 in accordance with the rule 60 of CGST Rules, 2017.
We would like to re

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Silver Value in Old Batteries to Naval Formations is Taxable for GST; Section 15(1) Inapplicable, Section 9(3) Applies.
Case-Laws
GST
The AAR held that the value of silver supplied free of cost by the Naval formations in the form of old batteries is to be included in the taxable value adopted by the applicant on the batteries manufactured and supplied to the Naval formations for the purpose of payment of GST. The provisions of Section 15(1) of the CGST Act, 2017 to adopt the transaction

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Court Rules Solar Power System Not a Works Contract Under GST Act, Section 2(119); Not Immovable Property.
Case-Laws
GST
The HC held that the supply of a Solar Power Generating System by the petitioner is a composite supply and does not amount to a works contract u/s 2(119) of the GST Act. The solar power plant is not immovable property as the solar modules are not attached to the civil foundation for permanent beneficial enjoyment. The civil foundation is embedded for beneficial enjoym

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GST officers must explain 'grounds of arrest' to offenders, obtain acknowledgement: CBIC
GST
Dated:- 13-1-2025
PTI
New Delhi, Jan 13 (PTI) GST officers will now have to explain to offenders about the "grounds of arrest" and obtain a written acknowledgement from them, the CBIC said on Monday.
Modifying the guidelines for arrest and bail in relation to offences punishable under the GST Act, the Central Board of Indirect Taxes and Customs (CBIC) said: "The grounds of arrest must be explained to the arrested person and also furnished to him in writing as an Annexure to the Arrest Memo. Acknowledgement of the same should be taken from the arrested person at the time of service of the Arrest Memo." As per the ear

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Slack Adjusters for Buses/Trucks Taxed at 28% GST, Trailers at 18% GST, Classified by Application Under HSN Codes.
Case-Laws
GST
Slack adjusters used in braking systems of buses and trucks are classifiable under HSN 87089900 as 'Parts and accessories of motor vehicles' attracting 28% GST. Slack adjusters used in trailers' braking systems are classifiable under HSN 87169010 as 'Parts and accessories of trailers' attracting 18% GST. Irrespective of OEM or aftermarket sales, correct classi

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Input Tax Credit Denied for Motor Vehicles Seating 13 or Fewer, Failing Exceptions in Section 17(5)(a) CGST/TNGST Act.
Case-Laws
GST
The AAR held that input tax credit is not available on motor vehicles with an approved seating capacity of less than or equal to 13 persons (including driver), except for specific categories mentioned u/s 17(5)(a) of CGST/TNGST Act, 2017. The applicant's activity of providing 'Automobile Bench Marking Service' and supplying 'Scrap of Automobiles' does not

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High Court Quashes GST Assessment Order for Denying Personal Hearing; Case Remitted for Reassessment by January 2025.
Case-Laws
GST
HC quashed assessment order and order in Form GST DRC-07 for violation of principles of natural justice by not granting personal hearing. Matter remitted to Assessing Officer to provide opportunity of personal hearing to assessee on 15.01.2025 or adjourned date. Assessing Officer directed to pass orders within 3 months from HC judgment date or limitation pe

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From January 2025, GSTR-1 and GSTR-1A require dropdown HSN code selection in Table 12 with new validations.
News
GST
In Phase-III implementation for GSTR-1 and GSTR-1A, from January 2025 return period, Table 12 requires selecting HSN codes from dropdown instead of manual entry. Table 12 bifurcates into B2B and B2C tabs to report supplies separately. Validations introduced for supply values and tax amounts, initially in warning mode without blocking GSTR filing.
TMI Updates – Highlig

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Supreme Court Pauses GST Showcause Actions Against Online Gaming, Casinos; Cases Consolidated for Final Ruling.
News
GST
SC stayed showcause notices issued by GST authorities worth over Rs 1 lakh crore to online gaming companies and casinos over alleged tax evasion. A bench of JJ. J B Pardiwala and R Mahadevan said matters required hearing and all proceedings against gaming companies should remain stayed. Govt amended GST law making it mandatory for overseas online gaming firms to regis

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Advisory on Extension of Due Date w.r.t GSTR 1 and GSTR 3B
GST
Dated:- 11-1-2025

Dear Taxpayer,
Due Date for filling of GSTR-1 and GSTR-3B have been extended by two days. For details re

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Transfer of Goods in FTWZ Non-Taxable; No ITC Reversal Needed Under CGST Act Schedule III, Para 8(a).
Case-Laws
GST
The transfer of title of goods by the Applicant to its customers or multiple transfers within the Free Trade Warehousing Zone (FTWZ) gets covered under para 8(a) of Schedule III of the CGST Act, 2017, and remains non-taxable. The Applicant is not required to reverse any ITC of common inputs/input services/capital goods, even when the activity/transaction is covered under p

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Custom Transformers for Wind Turbines Not GST-Exempt, GAAR Rules; Aligns with CBIC and Ministry Clarifications.
Case-Laws
GST
The GAAR held that specially designed transformers for WOEG performing dual step-down and step-up functions, supplied by the appellant along with WOEG, cannot be treated as part of WOEG. This is based on CBIC's circular excluding transformers from WOEG parts as per Ministry of New and Renewable Energy's clarification. The appellant's reliance on popular meaning/c

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