Author: admin_gst

Human Error in GSTIN Filing Denies ITC Claim; Court Allows Rectification to Prevent Business Closure.
Case-Laws
GST
Inadvertent human error in filing a return led to denial of input tax credit (ITC) claim due to incorrect GSTIN number. The digital platform foreclosed the remedy to rectify the error due to passage of time. The court held that the denial was a bona fide mistake, and the IDA who deducted and paid the tax was made a party. Refund denial could lead to the petitioner's compan

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Central Tax formations under Central Board of Indirect Taxes and Customs (CBIC) detect Rs. 36,374 crore worth of fake Input Tax credit (ITC) involving 9,190 cases in FY 2023-24
GST
Dated:- 29-7-2024

The Central Tax formations under Central Board of Indirect Taxes and Customs (CBIC) detected Rs. 36,374 crore worth of fake Input Tax credit (ITC) that involved 9,190 cases in the Financial Year (FY) 2023-24. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in written reply to a question in Lok Sabha today.
The details of the fake Input Tax Credit (ITC) cases booked by Central Tax formations during the F.Y. 2022-23 and 2023-24 are as under:
F.Y.
No. of cases
Detection (Rs. in Cr.)
Voluntary
Deposit

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T Rules, 2017 to provide for requirement of bank account furnished as a part of registration process to be in the name of the registered person and obtained on PAN of the registered person and also linked with Aadhaar in case of proprietorship firm and that the details of bank account will be required to be furnished within 30 days of grant of registration or before filing of GSTR-1, whichever is earlier.
* Restriction on availment of ITC to invoices and debit notes furnished by the supplier in their statement of outward supplies.
* Filing of FORM GSTR-1 made mandatory before filing of FORM GSTR-3B for a tax period and filing of FORM GSTR-1 made mandatorily sequential.
* Making the beneficial owner liable for penal action and prosecut

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Gross and Net GST revenue collections for the month of June, 2024
GST
Dated:- 29-7-2024

Please click on the link below to view the gross and net GST revenue collections for the month of

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Uttarakhand
GST
Dated:- 29-7-2024

This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The above-said functionality has been dev

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the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail. Once the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
6. At the time of the visit of GSK, the applicant is required to carry the following details.
(a) a copy (hard/soft) of the appointment confirmation e-mail
(b) the details of jurisdiction as mentioned in the intimation e-mail
(c) Aadhaar Card and PAN Card (Original Copies)
(d) the original documents that were uploaded with the application,

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High Court Overturns GST Demand on Unbilled Revenue, Remands Case for Reconsideration Due to Natural Justice Breach.
Case-Laws
GST
Petitioner challenged demand for GST on unbilled revenue, explaining position. Adjudicating Authority rejected explanation without reasons, violating natural justice principles. Impugned order set aside, matter remanded to Adjudicating Authority for fresh consideration. Petition allowed by way of remand by HC.
TMI Updates – Highlights, quick notes, marqu

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Bank account provisionally attached for wrongful ITC claim due to fake supplies. Commissioner's action justified to protect revenue.
Case-Laws
GST
Provisional attachment of bank account u/s 83 of Central Goods and Services Tax Act, 2017 for wrongful claim of Input Tax Credit (ITC) due to fake supplies. Commissioner considered appropriate to provisionally attach petitioner's bank account to extent of Rs. 26.91 lacs being amount of ITC claimed for allegedly fake supplies. Exercise of powe

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Petitioner denied access to relied upon docs, alleged nat justice violation. Held: Ample hearing opp, avail remedy u/s 107.
Case-Laws
GST
Challenge to order u/s 74(9) of the Central Goods and Services Tax Act, 2017 – petitioner denied access to relied upon documents despite requests – alleged violation of principles of natural justice. Held: Petitioner afforded ample opportunity for hearing by respondent authority as per impugned order. In view of Supreme Court decision in Assistant Com

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Order Issued Without Reasons Violates Natural Justice, Fails to Address GST Discrepancies; Case Remanded for Reevaluation.
Case-Laws
GST
Impugned order passed without reasons based on Special Audit Report, violating principles of natural justice. Order lacks analysis on contentious issues regarding mismatch between GST returns and credit entries in bank account, merely confirming demand in show-cause notice. Adjudicating Authority failed to consider contentious issues. Matter remanded f

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GST cancellation notice lacked details, violating natural justice. Reasoning absent in order. Show cause notice must state allegations clearly. :
Case-Laws
GST
SCN does not clearly reflect reasons for proposed cancellation of petitioner's GST registration, violating principles of natural justice. Show cause notice must specify allegations with necessary details to elicit meaningful response. Without details, noticee remains clueless about case to be met. Impugned order lacks reasoning f

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Input Tax Credit Claim Remanded for Reassessment; Appellate Authority to Specify Required Transaction Documents.
Case-Laws
GST
Inadmissible ITC utilization from cancelled suppliers – petitioner disclosed inward tax supply invoices, party ledger, bank statements, GSTR-2A and e-waybills for supplies allegedly made by a supplier during September-October 2017. Although petitioner discharged initial burden of proof, appellate authority found petitioner ineligible for ITC without specifying d

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Advisory for FORM GSTR-1A
GST
Dated:- 27-7-2024

FORM GSTR-1A
1. The Government vide notification No. 12/2024 – Central Tax dated 10.07.2024, has introduced FORM GSTR-1A which is an optional Form/ facility. This has been provided to the taxpayers to add or amend particulars of a supply of the current tax period, which was missed out or was wrongly reported in FORM GSTR-1 of the said tax period, before filing of the GSTR-3B return of the said tax period.
2. FORM GSTR-1A would be available to all the taxpayer from August 2024, through which details furnished in FORM GSTR-01 for the month of July 24 can be amended. The salient features of FORM GSTR-1A are –
1. FORM GSTR-1A is an optional facility. This can be filed only once f

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t the taxpayer can't file FORM GSTR-1 for a month until he files FORM GSTR-3B for the previous month.
b. From the liability perspective, the net impact of particulars declared or amended through FORM GSTR-1A , along with the particulars declared in FORM GSTR-1, shall be auto-populated in FORM GSTR-3B for the same tax period as that of FORM GSTR-1.
5. For the QRMP taxpayers, who files FORM GSTR-1 on Quarterly basis:
a. FORM GSTR-1A shall be available quarterly after actual filing of FORM GSTR-1 (Quarterly) or the due date of filing of FORM GSTR -1 (Quarterly), whichever is later, and will be available till the actual filing of FORM GSTR-3B of the same tax period.
b. The supplies reported in the FORM GSTR-1 of the current tax period (

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Tax officer's dual role challenged. Court quashed orders, remanded cases for fresh hearing within 2 months with petitioner's cooperation.
Case-Laws
GST
Petition challenging assessment order was allowed due to officer assuming dual role as Commercial Tax Officer and State Tax Officer (Data Analytics) (Intelligence Wing) without proper explanation. Court set aside impugned orders, remitted cases to pass fresh orders on merits expeditiously within two months after hearing petitioner, who s

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Widow's tax liability overturned due to letterhead technicality. Court orders reassessment after reply to notices. Petition allowed.
Case-Laws
GST
Legal challenge to assessment order for tax liability based on deceased husband's business. Court found petitioner implied carrying on late husband's proprietorship through letterhead usage. Impugned orders set aside, cases remitted for fresh order after petitioner files reply to prior notices. Petition allowed.
TMI Updates – Highlights,

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Unreasoned order violating natural justice set aside. Alleged irregular ITC u/s 16(2)(c) sans concluding supplier's non-payment.
Case-Laws
GST
Unreasoned order violating principles of natural justice set aside. Irregular availment of input tax credit (ITC) alleged u/s 16(2)(c) of CGST/DGST Act on grounds of non-payment of tax by supplier. However, order did not conclude supplier's non-payment. Matter remanded to Adjudicating Officer for fresh decision after providing opportunity of hear

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Transfer of goods between own units without sale shouldn't attract interest/penalty. Authorities must give reasons as per CBIC circular & court precedents.
Case-Laws
GST
The respondent authority failed to provide reasons for levying interest and penalty, despite the goods being transferred between the petitioner's establishments, not sold. The court relied on CBIC's circular and previous judgments in Dhabriya Polywood Ltd. and Orson Holdings Company Ltd., which granted benefit of doubt

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Petroleum Dealer Margins Taxable Under GST as Supply of Service; Discounts Clause Not Applicable; 18% Tax Rate Applied.
Case-Laws
GST
The differential dealer margin provided by the petroleum companies to its retail dealers is considered a taxable supply of service under GST. The amount paid as differential dealer margin is a consideration received for agreeing to the obligation to refrain from an act, which falls under clause (e) of Sl No. 5 of Schedule II of the CGST Act, 2017, and is

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Application inadmissible under Sec 97(2) CGST/KSGST Act. Sec 98 procedures not followed. Questions already decided/pending for applicant.
Case-Laws
GST
The authority cannot admit the application as the questions raised do not fall under the purview of section 97(2) of the CGST/KSGST Act 2017. Section 98 specifies the procedures for processing an advance ruling application, including forwarding a copy to the jurisdictional officer, examining records, and conducting hearings. The authorit

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Advance Ruling Application Challenges ITC Reversal on Credit Notes Due to GSTR-3B and GSTR-2A Mismatch Discrepancies.
Case-Laws
GST
Advance Ruling application on maintainability – Reversal of input tax credit to extent of tax element in credit note – no agreement between parties on credit notes not treated as financial/commercial credit notes – no agreement to reduce ITC claim – mismatch of ITC claim figures between GSTR-3B and GSTR-2A – impact of incorrect output tax liability reductio

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Goods Detention for Missing E-Tax Invoice Quashed; No Mens Rea Found u/s 129(3.
Case-Laws
GST
Goods detained on ground of non-generation of E-Tax Invoice as per Rule 48 of GST Rules before movement; all required documents u/r 138A accompanied goods; technical error by petitioner in not generating E-Tax Invoice; no discrepancy in quality/quantity of goods; error a human error; prior to 01.08.2022, dealers with annual turnover over Rs. 20 crores required to issue E-Waybill; in absence of

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GST registration cancelled retrospectively without reasons, violating natural justice. Cancellation order set aside. Proper officer's power not arbitrary.
Case-Laws
GST
Failure to file returns for a continuous period of six months led to cancellation of GST registration. Cancellation order did not specify reasons for retrospective cancellation from registration date, violating principles of natural justice. Proper officer's power to cancel registration from a date cannot be arbitrary, m

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Non-receipt of show cause notice violated natural justice. Order set aside, fresh hearing ordered. Authorities must provide all documents within 2 weeks.
Case-Laws
GST
Violation of principles of natural justice occurred due to non-receipt of show cause notice (SCN). Petitioner disputed receiving SCN, repeatedly mentioned non-receipt, and claimed it was untraceable. Despite petitioner's requests on three occasions, respondent failed to provide copy of SCN without prejudice to their stanc

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GST authorities redesigned portal, but issued notice before change. Court allows petition, sets aside order & remands for fresh review.
Case-Laws
GST
Time limit u/s 73(10) of CGST Act for passing order u/s 73(9) – GST authorities re-designed portal to ensure 'View Notices' and 'View Additional Notices' tabs under one heading, but impugned show cause notice issued before portal redesign. Present petition allowed, impugned order set aside, matter remanded to adjudicating authority for fre

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Petitioner's GST registration cancellation challenged. Court ordered verification of additional business place within 3 weeks for restoration.
Case-Laws
GST
Cancellation of GST Registration of petitioner challenged. Petitioner had additional place of business registered and reflected in GST certificate. Application rejected on ground reasons for revocation not covered under Amnesty Scheme. Court disposed petition directing respondents to verify within three weeks if petitioner carrying

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Cancellation of GST registration quashed due to lack of reasoning, violation of natural justice. Constitutional remedy available despite time-bar.
Case-Laws
GST
Impugned orders cancelling GST registration set aside due to non-application of mind, lack of reasons, violation of natural justice principles. Time limitation bars appeal remedy but not constitutional remedy under Article 226 when valuable rights affected by arbitrary order sans reasoning. Petition allowed, cancellation orders

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Paid IGST instead of CGST+SGST? Approach appellate authority for relief from penalty & interest if bona fide mistake.
Case-Laws
GST
Petitioner paid IGST but respondent did not take benefit of ITC. Dispute not settled. Appellate authority to consider grievance regarding payment of penalty and interest if petitioner made bona fide mistake in paying IGST instead of CGST and SGST. Petitioner directed to approach appellate authority u/s 107 within two weeks along with application for interim

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