Author: admin_gst

Petition Dismissed: Court Urges Response to Show Cause Notice on Ineligible Tax Credit from Alleged Fake Supplier.
Case-Laws
GST
The petitioner claimed ineligible input tax credit on purchases from the supplier, Tvl. Bharat Marketing, during 2022-2023. The supplier was alleged to be a non-existent entity engaged in bill trading activities, as per an inspection report received from CBIC during a Special All India Drive targeting fake registrations and beneficiaries of bill trading. Conse

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Transporter vindicated: Tax & penalty wrongly levied on goods with valid docs like invoice & e-way bill.
Case-Laws
GST
The High Court held that the levy of tax and penalty on detained goods was unjustified as there was no intention to avoid tax payment. The petitioner accompanied the goods with relevant documents like tax invoice, goods receipt, and e-way bills mentioning Ghaziabad as the dispatch location. The petitioner's reply stated the purchase was from a Ghaziabad dealer, which wa

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Overlapping notices led to confusion, violated natural justice – Order set aside, Petitioner to pay Rs 1.4 cr for fresh hearing.
Case-Laws
GST
Multiple show cause notices issued with overlapping discrepancies, resulting in confusion and lack of opportunity for petitioner to respond adequately. Impugned order passed without considering circumstances and violating principles of natural justice. Order u/s 73 set aside, matter remanded for fresh consideration upon petitioner paying Rs. 1,40

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Taxpayer challenges tax order, files writ & appeal – Court allows appeal to continue, stays recovery.
Case-Laws
GST
This case pertains to a writ petition filed challenging an order dated 30.04.2024, wherein the petitioner has also filed an appeal before the Appellate Authority against the same order. The High Court held that since the petitioner has an alternative statutory remedy of appeal, the writ petition cannot be entertained. However, considering the initiation of recovery proceed

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Unreasoned GST orders voided, fresh hearing ordered respecting due process.
Case-Laws
GST
Unreasoned orders passed u/s 73 of the Central/Delhi Goods & Services Tax Act, 2017 violated principles of natural justice. The impugned orders were set aside, and matters remanded for fresh consideration by the adjudicating authority. The authority was directed not to pass adverse orders without affording reasonable opportunity of hearing to petitioners. All rights and contentions of petitioners w

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Taxpayer's right to fair hearing violated due to lack of notice on discrepancies.
Case-Laws
GST
Principles of natural justice violated due to non-issuance of notice regarding discrepancies as mandated by Rule 101(4) of Central Goods and Services Tax Rules, 2017. Discrepancies existed between audit report and demands raised. Petitioner asserted providing all requested documents, while respondents issued reminders for document submission. Petitioner sought direction for adjudicating autho

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Court Rules CBIC Not Required to Clarify GST on Battery Energy Storage Systems; Queries to Follow GST Acts for Resolution.
Case-Laws
GST
The High Court held that the Central Board of Indirect Taxes and Customs (CBIC) cannot be directed to clarify the applicability of Goods and Services Tax (GST) on Battery Energy Storage Systems (BESS). GST is chargeable under the Central GST Act, State GST Act, and Integrated GST Act, and any contentious issue regarding its applicability must be resolv

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Penalty for typographical error in e-way bill quashed; goods & vehicle release ordered by High Court.
Case-Laws
GST
High Court held that since there was no intent to evade tax and the error in e-way bill was merely typographical, penalty imposed u/s 129(3) of CGST Act was unjustified. Impugned order quashed, directing authorities to release detained goods and vehicle within two weeks to petitioner. Petition allowed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, a

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Re-opening of Reporting ITC Reversal Opening Balance
GST
Dated:- 17-9-2024

1. Vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 (read with circular 170/02/2022-GST, Dated 6th July,2022), the Government introduced certain changes in Table 4 of Form GSTR-3B regarding availment & reversal of ITC along-with reporting of re-claimed and ineligible ITC. Accordingly, the re-claimable ITC earlier reversed in Table 4(B)2 may be subsequently claimed in Table 4(A)5 on fulfilment of necessary conditions and such reclaimed ITC also needs to be reported in Table 4D(1).
2. To facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes, a new ledger namely Elect

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m ledger. Please note the important dates to report opening balance are mentioned below.
(i) The functionality to reporting the opening balance will be available from 15th September 2024 to 31st October 2024.
(ii) The amendments in declared opening balance will be available till 30th November, 2024.
(iii) Taxpayers having monthly filing frequency are required to report their opening balance considering the ITC reversal done till the return period of July 2023 only. As after this period balance is already available in ledger.
(iv) Quarterly taxpayers shall report their opening balance up to Q1 of the financial year 2023-24, considering the ITC reversal made till the April-June 2023 return period only. As after this period balance is

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New GST Rules Define Taxability and Valuation for Corporate Guarantees Among Related Parties Effective October 26, 2023.
Circulars
GST – States
This trade circular clarifies various issues related to taxability and valuation of supply of services involving corporate guarantees provided between related persons. Key points are: Corporate guarantees issued before 26.10.2023 will be valued as per pre-amended rules, while those issued/renewed after will follow the new sub-rule (2) of Rule 28

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Post-appeal recovery guidelines: Pre-deposit via e-register for stay, adjust DRC-03 via DRC-03A.
Circulars
GST – States
Circular provides guidelines for recovery of outstanding dues when first appeal is disposed of before Appellate Tribunal becomes operational. Taxpayers unable to file appeal against appellate order can make pre-deposit payment through electronic liability register to avail stay on recovery proceedings. Taxpayers inadvertently paying through DRC-03 can file DRC-03A for

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Exporters Can Claim IGST Refund on Price Revisions: Submit FORM GST RFD-01 with Required Documents Within 2 Years.
Circulars
GST – States
This circular prescribes the mechanism for refund of additional Integrated Tax (IGST) paid by exporters on account of upward revision in price of exported goods subsequent to exports. Exporters can file refund application in FORM GST RFD-01 electronically on the common portal, which will be processed by the jurisdictional GST officer. Required documen

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Court Allows Response to GST Violations; Petitioner to Address Show Cause Notices for 2018-19 Tax Period.
Case-Laws
GST
This legal matter involves alleged violations of specific provisions under the applicable Goods and Services Tax (GST) statutes. The case pertains to the exercise of discretionary jurisdiction by the authority in canceling the petitioner's GST registration and issuing show cause notices regarding tax proposals for the 2018-19 tax period. The High Court held that upon e

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Discrepancies in GST returns ignored petitioner's replies, violating natural justice; order set aside for reconsideration.
Case-Laws
GST
Judicial review of an assessment order was conducted due to discrepancies between GSTR 1 and GSTR 3B returns. The petitioner's replies were not considered, violating natural justice principles. The High Court held the order unsustainable as the petitioner's replies were not taken into account while recording conclusions. Consequently, the impugned orde

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GST registration woes after family feud: Court orders swift processing sans NOC.
Case-Laws
GST
Writ petition disposed of directing respondents to process petitioner's application for GST registration within two weeks without insisting on No Objection Certificate. Petitioner had dispute with brother-in-law and mother-in-law after husband's death, leading to inability to carry on business due to expiry of old GST registration in absence of co-operation. Court found no impediment in allowi

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Taxpayer's filing error led to notice, but lack of show cause notice & order on portal made the order unsustainable. Court set it aside.
Case-Laws
GST
Inadvertent error committed by taxpayer in filing GSTR-3B return led to issuance of Form GST DRC-01A. However, upon examination, it was observed that detailed show cause notice and order were not available or uploaded on the portal. Consequently, the impugned order could not be sustained. The High Court set aside the order, allowing the r

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Tax assessment order set aside for lack of fair hearing & notice.
Case-Laws
GST
Impugned assessment order set aside due to violation of principles of natural justice. Petitioner not provided opportunity for personal hearing regarding mismatch of tax liability filed for financial year 2017-2018. Show cause notice uploaded on GST Portal without furnishing original to petitioner. Order passed without allowing petitioner to establish case, violating natural justice. Matter remanded to respo

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Refund Denied: Cess Credits Non-Transferable Under GST; Court Upholds CENVAT Rules and Section 54 Restrictions.
Case-Laws
GST
The petitioner's claim for refund of unutilized credit on account of payment of Service Tax, Education Cess (EC), Secondary and Higher Education Cess (SHEC), and Krishi Kalyan Cess (KKC) under the GST regime was rejected. The court held that EC, SHEC, and KKC can only be utilized for payment of such cess and not for any other purposes under the CENVAT Credit Rule

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Invoice tax credit denial overturned for lack of reasoning, new order after hearing firm.
Case-Laws
GST
Impugned communication rejecting application for input tax credit blocking lacked reasoning, amounting to non-application of mind and violation of natural justice principles. Authority contended blocking was within jurisdiction, reasons provided later, but petitioner entitled to be heard. Impugned communication quashed, application restored for fresh order after hearing petitioner. Au

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Retrospective amendment allows IGST refund for exporters who paid tax on imported inputs.
Circulars
GST
This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, where exporters had imported inputs without paying integrated taxes and compensation cess. It states that if exporters initially imported inputs without paying IGST and cess by availing exemption notifications, but later paid the dues along with interest and got th

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Indian Data Hosting Services to Overseas Cloud Providers Clarified as Export; Not Intermediary or Property-Linked.
Circulars
GST
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 issues: whether the data hosting service provider qualifies as an intermediary, whether the services relate to goods made available by the recipient, and whether they directly relate to immovable property. The key points are: 1) Data hosting service providers do not qualify as intermediaries facilitating supply between cloud providers and end-users, as they provide services on a principal-to-principal basis. Hence, place of supply canno

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Demo vehicles: ITC eligibility for dealers to promote sales.
Circulars
GST
This circular clarifies the availability of input tax credit (ITC) on demo vehicles used by authorized dealers of motor vehicles. Key points are: ITC is available on demo vehicles used for demonstrating features to potential buyers as they promote further supply of such vehicles. However, ITC is blocked if demo vehicles are used for staff transportation. For dealers acting as agents providing marketing services,

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Determining Export Benefits for Indian Advertising Agencies: Place of Supply and Intermediary Status Explained.
Circulars
GST
This circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points are: advertising agencies providing comprehensive advertising solutions, including media planning, content creation, and procurement of media space, are not considered intermediaries under

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Tax demand discrepancies led to unlawful property attachment despite pre-deposit made, prompting court relief.
Case-Laws
GST
The High Court granted relief to the petitioner by directing the release of attachment over immovable properties due to discrepancies between GSTR 3B returns and auto-populated GSTR 2A. Despite making the requisite 10% pre-deposit of the disputed tax demand, the attachment was effected contrary to statutory provisions. The court held that once the pre-deposit is m

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Real estate firm's GST claim rejected, Court orders reconsideration on rising material costs.
Case-Laws
GST
This case pertains to the denial of a GST claim for differential tax liability arising from increased prices of materials and wages. The respondent, BUIDCo, expressed no objection to remanding the matter to the concerned authority for fresh consideration. Consequently, the High Court set aside the impugned order dated 16.11.2019 and remanded the matter to the Chief General Manager

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