Author: admin_gst

GST Clarifications: Railway, Real Estate, and Banking Exemptions; Reinsurance and Accommodation Tax Updates.
Circulars
GST
Clarifications issued regarding applicability of GST on certain services including exemption for Ministry of Railways (Indian Railways) supplies to public and inter-zone/division supplies; exemption for transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways; statutory collections by Real Estate Regulatory Authority (RERA) covered under GST exe

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Rule 86A empowers restricting fraudulent ITC debit for liabilities/refunds. Restriction ceases after 1 year by law.
Case-Laws
GST
The court held that Rule 86A empowers the Commissioner or authorized officer to restrict debit of fraudulently availed or ineligible Input Tax Credit (ITC) from the electronic credit ledger for discharge of liabilities or refund claims, subject to recording reasons in writing. Sub-rule (3) mandates that such restriction shall cease after one year from imposit

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Arbitral award upheld; GST implementation envisaged; tax incentives conditional; estoppel claim rejected. Secure awarded amount.
Case-Laws
GST
Impugned award unaffected by fraud or corruption; Arbitral Tribunal considered materials and submissions; no case made out regarding fraud in passing award. Parties contemplated GST implementation in Share Purchase Agreement; incentives payable only to extent tax accrued to State Government. Withdrawal of exemption notification pursuant to statut

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Petitioner's Registration Canceled for Alleged Fraud; Case Remanded for Reconsideration and Hearing Opportunity by Proper Officer.
Case-Laws
GST
Cancellation of petitioner's registration due to alleged fraud, willful misstatement, or suppression of facts in obtaining registration. Proper Officer issued show cause notice, but petitioner claimed non-disclosure of basis. Proper Officer clarified and provided documents. Petitioner filed response, but Proper Officer canceled registration on

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Eligible for ITC on capital goods like wires/cables for electricity transmission from power station to factory premises, not fixed to earth.
Case-Laws
GST
Applicant eligible to avail Input Tax Credit (ITC) on capital goods like wires/cables, electrical equipment used for transmission of electricity from power station to factory premises, installed outside factory as per rules/policy. Conditions u/s 16 fulfilled. Not hit by Section 17(5)(c) and (d) as goods not fixed to earth, can be rem

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Nominal deduction from salaries for factory canteen facility is not 'supply' u/s 7 of CGST Act. ITC available on GST charged by Canteen Service Provider.
Case-Laws
GST
Deduction of nominal amount from employees' salaries for availing food facility in factory premises is not considered 'supply' u/s 7 of CGST Act, as per Circular No. 172/04/2022-GST. Input Tax Credit is available to applicant for GST charged by Canteen Service Provider, restricted to cost borne by applicant, as canteen fa

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Turnkey contract = composite supply, GST payable on advances. Not divisible despite two parts. Notification 66/2017-CT inapplicable.
Case-Laws
GST
The turnkey contract entered by the applicant with PGVCL is a works contract as defined u/s 2(119), involving a composite supply for installation, testing, and commissioning of 11 KV medium voltage covered conductor (MVCC) with accessories. The contract is not divisible, despite constituting two interconnected and interdependent parts. GST is

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Coal Transport in Mining Now Classified as Vehicle Rental; GST Reduced from 18% to 12% Since July 2022.
Case-Laws
GST
The transportation of coal (minerals) within a mining area, such as from the mining pit head or coal stockyard to the railway siding or beneficiation plant, for a specified period and at an agreed price, is classified under SAC 9966, i.e., Renting of Transport Vehicles. The service of transporting minerals within a mining area by vehicles deployed with drivers is conside

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Electricity Transmission Services Taxed at 9%; No GST Exemption, ITC Allowed With Reversal for Business Use.
Case-Laws
GST
The deposit work undertaken by the applicant and 6% supervision charges received for supervision and monitoring of deposit work related to transmission or distribution of electricity do not qualify for exemption under Entry 25 of N/N. 12/2017-CT (R) dated 28.06.2027 issued under GST Laws, as they are ancillary/incidental to the principal supply of transmission or di

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Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals
GST
Dated:- 17-7-2024

GSTN wish to inform that NIC is releasing the integrated services from e-invoice-1 and e-invoice-2 portals on 18th July 2024 on sandbox portals and 1st Aug 2024 on the production portals. These portals run in parallel and now allow for seamlessly inter-operations. The highlights of the portal are as follows:
(https://einvoice1.gst.gov.in and https://einvoice2.gst.gov.in)
i. Both the portals (NIC-IRP 1 & 2) provide the web and API modes for e-invoice related services.
ii. The taxpayers can use the same login credentials to operate e-invoice1 and e-invoice-2 portals.
iii. In case of API, the same token can be used for the services o

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Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports
GST
Dated:- 17-7-2024

1. GST Council has approved that application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports may also be processed by Tax Administration. Accordingly, Notification No. 12/2024-Central Tax dt. 10th July, 2024 has also been issued. GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.
2. However, till the time such separate category for claiming refund of additional amount

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Unsigned order & notice quashed for lack of digital/physical signature as per Rule 26 CGST Rules & TGST Act.
Case-Laws
GST
Impugned order and show cause notice quashed due to lack of digital or physical signature by issuing authority as mandated by Rule 26 of CGST Rules and TGST Act and Rules. Unsigned documents rendered ineffective. However, respondents' right reserved to initiate appropriate proceedings in accordance with applicable laws.
TMI Updates – Highlights, quick notes, mar

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Section 169: Decisions, Orders, and Notices Can Be Served via Common Portal; Appeal Dismissed Due to Delayed Access Claim.
Case-Laws
GST
A reading of Section 169 of the Act makes it clear that any decision, order, summons, notice or other communication under the Act or Rules may be served on the assessee by making it available on the common portal. This statutory provision has to be read along with Section 146, which means that once a common portal is notified for the Act's purposes, ac

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Defective notice sans details invalidated registration cancellation. High Court upheld natural justice principles.
Case-Laws
GST
Defective show cause notice lacking minimum details to establish adverse material received post specified date. Cancellation of registration and order-in-original set aside by High Court due to violation of principles of natural justice. Petition disposed, allowing opportunity for issuance of appropriate show cause notice to meet ends of justice.
TMI Updat

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Order set aside on interest liability. Interest based on 700 days delay. Pay admitted interest in 15 days.
Case-Laws
GST
Impugned order set aside regarding interest liability; petitioner to d

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Appellate authority's inconsistent approach in accepting/rejecting contentions sans evidence rejected. Order quashed, remanded for judicial consideration.
Case-Laws
GST
Appellate Authority affirmed impugned order without evidence regarding petitioner's intention to evade tax. Inconsistent approach rejecting petitioner's contention for lack of evidence while accepting department's contention despite absence of evidence. Appellate Authority must act judicially, adopting same approach towa

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E-way bills & GSTR 3B disparity for 2018-21. Non-taxable supplies caused mismatch. Remit ₹3.5cr, submit docs for reconsideration.
Case-Laws
GST
Demand regarding disparity between e-way bills and GSTR 3B returns for 2018-19 to 2020-21 assessment periods. Petitioner stated disparity due to non-taxable supplies in e-way bills portal. Supporting documents not annexed to reply. Respondent did not refer to ITC-04 returns. Petitioner could have provided comprehensive explanation. Order s

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Appellant's Challenge Dismissed: Failure to File Returns Timely u/s 62 CGST/SGST Act Upholds Registration Cancellation.
Case-Laws
GST
Failure to file returns within thirty days after receiving best judgment assessment order u/s 62 of CGST/SGST Act proved fatal for appellant's challenge against cancellation of registration. Despite opportunity to nullify assessment by filing returns, appellant did not avail it. Statutory provisions grant sufficient opportunities to ensure assessment base

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GST on mineral mining royalty in limbo. Petitioner to reply in 4 weeks. Respondent to keep order on hold pending SC verdict as per Division Bench.
Case-Laws
GST
GST levy on royalty payable for mining minerals – Reliance placed on Division Bench decision holding no GST recovery on royalty until Constitution Bench decision. Petitioner directed to file reply within 4 weeks, respondent to adjudicate but keep order implementation in abeyance pending Supreme Court orders as per Division Bench

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Non-service of show cause notice led to unawareness. Tax demand quashed if 15% remitted within 15 days. 10% already paid for appeal.
Case-Laws
GST
Non-compliance with principles of natural justice due to non-service of show cause notice. Consultant unaware of proceedings as notices uploaded on GST portal's “View Additional Notices and Orders” tab. Tax demand confirmed for non-response to show cause notice. Considering unawareness, petitioner granted opportunity to contest tax demand by

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GST Appeal delay condoned; registration suspended due to lapse; re-hearing ordered with conditions for lapses; Covid-19 infection caused delay.
Case-Laws
GST
Jurisdiction to condone delay in filing GST Appeal. Suspension of registration. Petitioner's lapse in not submitting tax returns for six consecutive months. Impugned order would prevent Petitioner from conducting business, necessitating fresh registration. Allowing re-hearing before State Tax Officer, subject to conditions for laps

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Challenge assessment order time limit. GST taxability from 01.07.2017 irrelevant. Fresh order after 10% tax deposit in 30 days.
Case-Laws
GST
Challenge to assessment order – time limitation. It is not required to dilate on taxability under GST regime from 01.07.2017. Matter requires consideration on merits. Prayer for quashing cannot be considered. However, balancing interests, impugned orders set aside by remitting cases to pass fresh orders, subject to depositing 10% of disputed tax w

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Order quashed for lack of natural justice. Fresh orders within 60 days on Rs. 38L recovery treating impugned order as show cause addendum.
Case-Laws
GST
Impugned order quashed due to violation of principles of natural justice as second notice failed to mention time or date for personal hearing. Case remitted to pass fresh orders on merits and in accordance with law within 60 days, treating impugned order as addendum to preceding show cause notice, considering recovery of Rs. 38 lakhs fr

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Respondent didn't pass GST rate cut benefit, profiteered Rs. 54L+ on cinema tickets. Directed to reduce prices, deposit profiteered amount.
Case-Laws
GST
Respondent resorted to profiteering by not passing on benefit of GST rate reduction from 28% to 18% on cinema ticket prices above Rs. 100 during 01.01.2019 to 30.04.2019, profiteering Rs. 54,44,642 including GST. Directed to reduce prices commensurately, deposit profiteered amount of Rs. 54,44,642 with 18% interest equally in Central a

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Profiteering by cinema on GST rate cut, not passing benefit to customers. Directed to reduce prices. Violated law, but penalty can't be retrospective.
Case-Laws
GST
Respondent resorted to profiteering by not reducing selling price commensurately despite GST rate reduction from 28% to 18% on cinema tickets above Rs. 100, from 01.01.2019 to 05.02.2019, profiteering Rs. 13,99,061 including GST. Respondent directed to reduce prices keeping rate reduction in view, having revised ticket price

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