Author: admin_gst

Foreign company's guarantee to Indian subsidiary for loans triggers GST under reverse charge.
Case-Laws
GST
GST is payable under reverse charge mechanism on issuance of corporate guarantee without consideration by foreign group company to Indian subsidiary for loan taken from banks/financial institutions. The time of supply is the date of entry in books of Indian recipient. Prior to 26.10.2023, GST is payable at the time of execution based on valuation u/r 28(1). Post 26.10.2023, GST is

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GST Liable on Indian Railways Charges: Applicant Not a Pure Agent, Must Pay GST on Various Fees and Charges Under CGST Rules.
Case-Laws
GST
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

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Tax demand order overturned for lack of due process, petitioner gets chance to reply.
Case-Laws
GST
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 permi

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Unfair order issued without hearing, petitioner to pay costs & file reply for reconsideration within 8 weeks.
Case-Laws
GST
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 noti

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Important advisory for GSTR-9/9C
GST
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 by taxpayers) to complete the auto populatio

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Attention – Advisory on IMS
GST
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 generated for the return period Oct' 24 on 14th

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GST Circular: Lower Rate Payments Accepted as Full; No Refunds for Higher Rates Paid.
Circulars
GST
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,

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GST rates revised for snacks, AC units, car seats; effective prospectively.
Circulars
GST
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 prospective

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GST Updates: University Affiliation, Helicopter Transport, and Theatrical Rights Clarified Post-54th Council Meeting.
Circulars
GST
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

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Clarification on Regularizing IGST Refunds for Exporters: Payments and Reassessments Align with Rule 96(10) WBGST Rules 2017.
Circulars
GST – States
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 o

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Indian Data Hosting Services for Overseas Clients Deemed Export Under IGST; Recipient's Location is Place of Supply.
Circulars
GST – States
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

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Trade Circular Clarifies ITC Eligibility for Demo Vehicles Used by Motor Dealers Under WBGST Act Provisions.
Circulars
GST – States
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 ve

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Clarification on Place of Supply for Indian Advertising Agencies: Full Service vs. Intermediary Roles Impact Export Benefits.
Circulars
GST – States
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

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GST registration cancelled, appeal delayed but material facts not suppressed. Court revives appeal.
Case-Laws
GST
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 grantin

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Tax dues paid, GST license renewal directed. Respondent to communicate remaining dues, if any.
Case-Laws
GST
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 comm

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Court Annuls Tax Order: Petitioner Wins Reconsideration Over Alleged Filing Discrepancies, Must Pay 10% Demand to Proceed.
Case-Laws
GST
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 procee

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Tax Order Quashed for Denying Hearing Violating Natural Justice.
Case-Laws
GST
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

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Technical Glitch in GST Portal Leads to Manual ITC Transfer Approval, Overcoming Filing Challenges.
Case-Laws
GST
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

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Tax Authorities' Order Quashed for Violation of Natural Justice; Remanded for Fresh Adjudication After Hearing.
Case-Laws
GST
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 la

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Advisory for Taxpayers: New GST Provision for Metal Scrap Transactions
GST
Dated:- 14-10-2024

The government has issued Notification 25/2024-Central Tax, on October 9, 2024.under GST Sec

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New GST Forms Introduced for Waiver Applications: Streamlined Process for Interest and Penalty Relief u/s 128A.
Notifications
GST
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 SP

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TDS now mandatory for metal scrap supplies between registered businesses from Oct 2024.
Notifications
GST
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 subjec

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Metal scrap suppliers need GST registration despite reverse charge from 10-10-2024.
Notifications
GST
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 scra

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Tax liability imposed without show cause notice & documents, violating natural justice.
Case-Laws
GST
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

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Blocking Input Tax Credit Without Due Process Invalidated; Cross-Utilization Disallowed; Rs. 2.44 Cr Credit Unblocked.
Case-Laws
GST
Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST and SGST not permissible. Respondents directed to unblock credit of Rs. 2,44,05,567 in petitioners' electronic credit ledger. Utilization of remaining credit disallowed till show cause notice

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