Author: admin_gst

Advisory – Reg 07
GST
Dated:- 22-10-2024

Dear Taxpayer,
GSTN has introduced an update to facilitate the registration compliance for buyers of metal scrap through form GST REG-07. This update follows the new GST provisions for metal scrap buyers as outlined in the advisory issued on October 13.
Taxpayers in this category are required to select "Others" in Part B of Table 2 under the "Constitution of Business" section. A text box will appear where the taxpayer m

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Attention: Validation of bank account details while adding bank account as non core amendment
GST
Dated:- 22-10-2024

Dear Taxpayer,
GSTN has implemented a validation process for cases where a taxpayer attempts a non-core amendment to update bank account details. Taxpayers are requested to follow the procedure outlined below while adding bank account details on the portal.
(I) When the bank account details are entered, the taxpayer is required to click on “VALIDATE ACCOUNT DETAIL

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Error in GST filing corrected to claim ITC; court orders manual form rectification.
Case-Laws
GST
Rectification of GST Return filed incorrectly as B2C instead of B2B for the periods 2020-21 and 2021-22 was permitted to enable the petitioner to claim Input Tax Credit (ITC) benefit. The court held that allowing rectification would not cause any tax loss, and denying it would unnecessarily prejudice the petitioner. Relying on a Madras High Court precedent, the court directed the respondent

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Taxpayer gets stay on tax recovery due to State's delay in constituting Tribunal.
Case-Laws
GST
Petition filed under Article 226 challenging non-constitution of Tribunal and seeking stay on recovery of tax. State authorities acknowledged non-constitution and issued notification providing limitation period for appeal before Tribunal shall commence only after President/State President assumes office. Held, subject to deposit of 20% of remaining disputed tax amount, petitioner entitled to

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Denial of input tax credit if tax not paid to government upheld.
Case-Laws
GST
Section 16(2)(c) of the Central/State Goods and Services Tax Act, 2017, denies input tax credit if the tax charged has not been deposited with the government. The High Court upheld this provision, stating that input tax credit is a conditional right and cannot be availed unless the tax collected has actually been paid to the exchequer. The Court relied on its previous decision in Nahasshukoor v. Assistant Com

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Court Allows Late Amendment of GSTR-1 for Export Invoice Errors, Emphasizing Fair Credit for Taxpayers.
Case-Laws
GST
The High Court allowed the petitioner to rectify GSTR-1 for the months of October and November 2022 regarding five export invoices, despite the statutory time limit having expired. The court noted the petitioner's claim of genuine mistake and the fact that the error came to light before the deadline for correcting GSTR-1 u/s 37(3) of the GST Act. However, the petitioner

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Works contract service for laying sewage systems attracts 18% GST for local authority.
Case-Laws
GST
The applicant provides works contract services involving supply of goods and services for an immovable property to Bikaner Nagar Nigam, a local authority. Entry 3B of Notification No. 13/2017-CT (Rate) dated 28.06.2017 is not applicable as entries 3 and 3A cover services provided to local authorities. The applicant is liable to pay 18% GST (CGST 9% and SGST 9%) for providing services lik

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Truck detained over incorrect interest calculation; Court orders release on bank guarantee deposit.
Case-Laws
GST
The court held that the quantification of interest in the detention order dated 20.07.2024 was contrary to the statutory mandate of Sub-Section 3 of Section 129. The petitioner agreed to deposit a bank guarantee of the original amount of Rs. 8,40,924/-. Subject to depositing the bank guarantee, the petitioner's truck and material would be released after obtaining photographs

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Airport duty-free shops can claim GST refunds on services from operators as goods sale is zero-rated.
Case-Laws
GST
Duty Free Shops at international airports are entitled to claim Input Tax Credit and refund of GST paid on services provided by airport operators, as the sale of goods at these shops is a zero-rated supply. The levy of GST on such services is a revenue-neutral exercise. Petitioners directed to reimburse Rs. 6,11,084 to airport operators within four weeks, along with 8% int

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Validity of parallel proceedings by State & Central Authorities under GST Laws.
Case-Laws
GST
Proceedings initiated by State Authority u/s 74 are valid even if Central Authority has already initiated proceedings. The term 'initiation of proceedings' refers to issuance of notice under CGST/SGST Acts, not issuance of summons u/s 70 for inquiry. The Patna High Court's judgment in Baibhaw Construction did not consider this aspect. Therefore, the petitions lack merit and are dismissed.
T

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Wrongly availed ITC not utilized, interest & penalty quashed by court under GST Act.
Case-Laws
GST
The petitioner challenged the levy of interest and penalty for wrongly availing and utilizing Input Tax Credit (ITC). The court held that unless ITC is wrongfully availed and utilized, interest cannot be levied u/s 50(3) of the GST Act, as amended retrospectively by the Finance Act 2022. The petitioner had debited its credit ledger for the wrongly availed ITC but did not utilize it. The co

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Authorities provisionally attached bank account over alleged ITC fraud. Court allows revocation plea within a week.
Case-Laws
GST
The High Court addressed the issue of provisional attachment of a bank account by the authorities u/s 83 of the Central Goods and Services Tax Act, 2017, alleging wrongful availment of Input Tax Credit. Considering the nature of allegations against the petitioner, the Court granted liberty to move for lifting the provisional attachment as per Rule 159. The pe

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Credit Ledger Block Nullified for Lack of Hearing and Natural Justice Violation; Case Remanded for Fresh Adjudication.
Case-Laws
GST
The High Court set aside the adjudication order blocking the Petitioner's credit ledger due to lack of personal hearing and violation of principles of natural justice. The adjudicating officer failed to provide reasons for sustaining the demand or interest, merely stating conclusions without addressing the Petitioner's detailed response to the show cause n

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Court Grants Injunction in Tax Case; Printing Educational Books Ruled as Supply of Goods by State Authorities.
Case-Laws
GST
The court observed that the show cause notice did not specifically allege wrongful availment or short payment of tax due to fraud, willful misstatement, or suppression of facts to evade tax. Advance ruling authorities in Karnataka, West Bengal, and Chhattisgarh have held that printing books by publishers, where content is provided by educational boards like NCERT,

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Restoring GST number, filing returns, tax payment in 7 days to avoid order lapse. High Court grants relief in delaying appeal filing.
Case-Laws
GST
The High Court directed the petitioner to approach the Competent Authority for GST registration within seven days. The Authority shall restore the petitioner's GST number upon completing requisite formalities. The petitioner must file returns, deposit taxes, penalty, and interest within seven days. Failure to comply will render the order ino

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Proceedings against deceased person quashed, allowed against legal heirs if business closed.
Case-Laws
GST
The High Court quashed an order passed against a deceased person, holding it a nullity. Section 93 of the CGST/SGST Act permits continuance of proceedings against legal heirs of a deceased person if the business is discontinued, but does not authorize proceedings against the deceased. The Court allowed the revenue authorities to continue proceedings against the legal heirs of the d

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Court Denies Refund of Input Tax Credit During VAT to GST Transition Due to Time Limitations and Compliance Requirements.
Case-Laws
GST
The High Court dismissed the petition seeking refund of Input Tax Credit (ITC) accrued under the Value Added Tax (VAT) regime upon transition to the Goods and Services Tax (GST) regime. The court held that Section 18(a) allows carrying forward ITC from the VAT regime to be availed as set-off under GST for inputs held in stock. However, Section 18(2) pro

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Cancellation of GST registration unlawful due to lack of notice & reasons, violating natural justice principles.
Case-Laws
GST
Registration of petitioner cancelled u/s 29(2)(a) of UP GST Act for willful misstatement and suppression of facts. Authorities failed to provide notice and opportunity regarding adverse material used against petitioner, violating principles of natural justice. Section 29(2)(a)-(e) prescribes grounds for cancellation, but no violation found nor reasons recorded b

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Tax liability for 2018-19 upheld; excuses rejected, appeals bypassed. Ignorance no defense for private firm.
Case-Laws
GST
Writ petition challenging order u/s 73 of WBGST/CGST Act for tax period April 2018 to March 2019 dismissed. Court found petitioner's contention of consultant's unavailability unconvincing for not responding to pre-show cause and show cause notices. As a private limited company, petitioner cannot feign ignorance. Petitioner failed to avail statutory remedy of appeal

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GST Exemption Under Entry 3B Inapplicable for Works Contract Services to Local Authorities.
Case-Laws
GST
This is a case regarding the applicability of GST exemption under Entry 3B of Notification No. 13/2017-CT (Rate) dated 28.06.2017 for services provided by the applicant to a local authority. The key points are: The applicant is engaged in providing 'works contract services' involving supply of goods along with services for an immovable property to Kotputli Municipal Council, a local

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Tax registration revoked for not filing returns; Court grants relief to restart business on clearing dues.
Case-Laws
GST
Registration cancellation under WB GST/CGST Act due to non-filing of returns. Appeal rejected as time-barred u/s 107(4). Court observed petitioner's case did not involve tax evasion or dubious activities. Suspension/revocation would be counterproductive, impacting revenue recovery as petitioner cannot raise invoices or carry on business. Respondents directed to take p

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Writ Petition Allowed: Company Wins Against GST Demand on MD's Guarantees & Intra-Group Loans.
Case-Laws
GST
This case pertains to the liability of an appellant to pay Goods and Services Tax (GST) on a reverse charge basis for two specific services: supply of services by the Managing Director through personal guarantees on loans obtained by the company, and supply of services by extending loans from the petitioner-company to its subsidiary. The High Court held that Circular No. 204/16/2

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Unfair tax assessment order quashed for lack of notice; authorities to re-evaluate after fair hearing.
Case-Laws
GST
Assessment order quashed due to violation of principles of natural justice

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GST authority's order quashed for violating natural justice; petitioner to get personal hearing.
Case-Laws
GST
The court held that the impugned order was passed in violation of principles of natural justice as no opportunity of personal hearing was provided to the petitioner prior to passing the order, contrary to Section 75(4) of the GST Act. The court directed the respondent authority to consider the petitioner's replies, issue a 14-day notice for personal hearing, and pass appropriat

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Bank account unfrozen, tax dispute reopened after lack of fair hearing.
Case-Laws
GST
Bank attachment order set aside due to lack of opportunity for personal hearing, violating natural justic

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