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Petitioner's appeal dismissed for procedural lapses, but order quashed over respondent's verification failure. Fresh consideration ordered.
Case-Laws
GST
The court dismissed the petitioner's appeal due to non-compliance with statutory requirements, specifically the failure to submit valid proof of payment of the mandatory pre-deposit and the absence of valid documents establishing the petitioner's authority as an authorized signatory under the Companies Act. However, the court found tha

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Cancelled GST registration revived on filing pending returns, paying dues.
Case-Laws
GST
Proviso to sub-rule (4) of Rule 22 of CGST Rules 2017 allows revocation of GST registration cancellation u/s 29(2)(c) of CGST Act 2017 if pending returns are filed and tax, interest and late fees paid. Petitioner's GST registration was cancelled for non-filing returns for 6 months. High Court set aside cancellation order, directing petitioner to approach authority within 1 month for revocation upon

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Delayed GST refund interest payable from 60 days after shipping bill till actual refund, despite interim red-flagging.
Case-Laws
GST
Interest on delayed refund of tax u/s 56 of Central Goods and Services Tax Act, 2017 is payable from expiry of 60 days from date of filing shipping bill till date of actual refund, irrespective of any interim period where assessee's name was red-flagged on department's portal. Section 56 provides for period of interest payment, commencing from date of rece

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Dismissal of petition against tax recovery notice; adjudication on suppression, misstatement facts reserved for later stage.
Case-Laws
GST
Entertainability of petition challenging show cause notice for recovery of taxes, determination of value of supply u/s 15(3)(b) of CGST Act. Allegations of suppressing facts, misstatement regarding non-furnishing outward supplies u/s 37, intention to evade GST from July 2017 to March 2022. Invocation of extended period of limitation based on suppress

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Court Upholds Fair Hearing Requirement for Challenging CGST and KGST Act's Section 16(4) Validity.
Case-Laws
GST
The Karnataka High Court disposed of the petition challenging the constitutional validity of Section 16(4) of the CGST and KGST Act, 2017, which was alleged to be violative of Articles 14, 19(1)(g), and 300A of the Constitution. The Court relied on its previous judgment in M/s. Sadhana Enviro Engineering Services vs. Joint Commissioner of Central Tax & others, where it held t

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Unlawful GST registration cancellation obstructed business rights; due process violated. Court orders fair hearing.
Case-Laws
GST
Cancellation of GST registration violated petitioner's constitutional right to carry on business. Respondent should have initiated legal action for alleged fraud instead of outright cancellation, depriving petitioner from conducting business. Suspension order passed without considering petitioner's reply, rendering proceedings liable to be set aside. High Cou

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Court Invalidates Hold on GST Refund Sanction Order; Authority's Input Tax Credit Concerns Deemed Irrelevant.
Case-Laws
GST
The High Court held that the revisional authority's order placing the refund sanction order in abeyance u/s 108 of the Central Goods and Services Tax Act, 2017 was invalid. Section 54 prescribes the procedure for claiming refunds, and the proviso to Section 54(1) requires following the procedure u/s 49(6) for refunds from the Electronic Cash Ledger. While Section 5

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Registration cancelled for not filing returns; court follows previous TVL case, allows revocation with conditions.
Case-Laws
GST
The High Court addressed the issue of cancellation of registration due to non-filing of statutory returns. The court relied on its previous decision in TVL. Suguna Cutpiece Center v. The Appellate Deputy Commissioner (ST) (GST), where it had directed revocation of registration under similar circumstances, subject to certain conditions. Consequently, the court

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High Court Reverses GST Registration Cancellation; Case Sent Back for Reconsideration Due to Justice Violation.
Case-Laws
GST
The High Court set aside the order cancelling the petitioner's GST registration effective July 31, 2021, on grounds of violation of principles of natural justice. Despite issuance of show cause notices on August 26, 2022 and December 1, 2022, the petitioner's registration had already been cancelled by that time. The petitioner claimed non-receipt of notices, and

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Rule 86A of GST Rules Unconstitutional: Court Cites Breach of Natural Justice and Absence of Pre-decisional Hearing.
Case-Laws
GST
Rule 86A of the Central/State Goods and Services Tax Rules, 2017, which allows blocking of the Electronic Credit Ledger, has been held unconstitutional by the High Court due to violation of principles of natural justice. The Court observed that no pre-decisional hearing was provided to the petitioner, and the impugned order lacked independent or cogent reaso

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Advisory on IMS on Supplier View
GST
Dated:- 13-11-2024

1. Invoice Management System (IMS) has been made available on the GST Portal from 14th October, 2024 wherein the recipient taxpayer can accept, reject or keep the invoices pending which are saved/filed by their suppliers in their respective GSTR-1/1A/IFF. This is to further inform you that the first GSTR-2B on the basis of such actions taken in IMS by the recipient taxpayers will be generated on 14th November, 2024 for October-2024 period.
2. To further facilitate the taxpayers, the Supplier View of IMS has also been made available where the action taken by their recipients on the records/invoices reported in GSTR-1/1A/IFF, will be visible to the suppliers in 'Supplier V

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Tax Credit Dispute: Court Orders ITC Unblocking & Release Per Prior Ruling.
Case-Laws
GST
The court held that the issue in controversy regarding the legality of sub-section (4) to Section 16 of the Central Goods and Service Tax Act, 2017 and the Karnataka Goods and Service Tax Act, 2017, concerning the date of availment of input tax credit (ITC) in the books of account of the petitioner, is directly and squarely covered by its previous judgment in M/s. Sadhana Enviro Engineering Service

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Court Overturns Order Blocking E-Credit Ledger Due to Lack of Hearing and Justification, Violating Natural Justice.
Case-Laws
GST
The court quashed the order blocking the Electronic Credit Ledger (ECL) of the petitioner u/r 86A of the Central Goods and Services Tax Rules, 2017. The respondents did not provide a pre-decisional hearing to the petitioner, nor did the impugned order contain cogent reasons to believe that blocking the ECL was necessary, violating principles of natural justic

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Court Quashes FIR on Online Betting Case Due to Lack of Evidence of Deception and Dishonest Intent from the Start.
Case-Laws
GST
Interpretation of Sections 415 and 420 of the Indian Penal Code (IPC) and Section 66D of the Information Technology Act, 2000, in the context of online betting. The court held that for an offence u/s 415 (cheating) to be punishable u/s 420, there must be a person who has been deceived from the inception with a dishonest intention to commit fraud. The court fou

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Land purchase, construction GST credit restricted; SC upholds CGST Act provisions.
Case-Laws
GST
Section 17(5)(c) and (d) of the Central Goods and Services Tax Act, 2017, which restricts input tax credit on GST paid for purchase of land and construction thereon, has been upheld by the Supreme Court. The petitioner sought to claim input tax credit on GST paid for land purchase and construction. However, the issue is no longer res integra and is covered by the Supreme Court's decision in

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High Court Rules Petitioners Can't Summon Witnesses During Respondent's Evidence Presentation in GST Case.
Case-Laws
GST
In a case concerning the dismissal of an application to summon an official from the GST Department in Ludhiana along with the GST 3B return record, the High Court held that the petitioners do not have the right to summon witnesses at the stage when the respondent-complainant is producing evidence. The petitioners have the right to cross-examine the respondent-complain

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Petitioners' Challenge to Tax Notices Dismissed; Court Upholds Jurisdiction and Requires Statutory Remedies First.
Case-Laws
GST
The petitioners challenged the show cause notices (SCNs) issued by the respondent under the CGST Act, IGST Act, and MGST Act, contending that the services rendered by the Municipal Corporation of Greater Mumbai (MCGM) are exempted or subject to a nil tax rate under the relevant exemption notifications. The key issues are: 1) The jurisdiction of the SCNs, as th

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Court Rules Against Penalty for Goods Transport with Valid Invoices Despite Registration Suspension.
Case-Laws
GST
The summary focuses on the challenge to proceedings initiated u/s 129 of the CGST Act read with Section 20 of the IGST Act, involving a penalty order for the movement of goods without proper documents. The key points are: The goods were accompanied by dated documents, but the petitioner's registration was suspended by the jurisdictional authorities after the documents were

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Advisory regarding IMS during initial phase of its implementation
GST
Dated:- 12-11-2024

Invoice Management System (IMS) is an optional facility introduced from October 2024 on GST Portal, on which the invoices/records saved/furnished by the supplier in GSTR-1/1A/IFF, can be accepted, rejected or kept pending by recipients .Based on the action taken by the recipient on the IMS, system will generate the GSTR 2B of the recipient on 14th of subsequent month.
The Taxpayer can accept/reject/keep pending the invoice/record on IMS after due verification from his accounts. The ITC for the rejected record will not be available to the recipient in the GSTR 2B . Further, the liability and input tax credit is being auto -populated in GST

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ut tax credit to the recipient being shown in his GSTR-2B, which will also be auto-populated in his GSTR 3B on the portal. In such cases, the recipient can change the action on the IMS in respect of an invoice/record ( e.g. from rejected to accepted or vice versa) and can recompute his GSTR-2B at any time till the filing of GSTR 3B for the corresponding tax period, so that correct ITC is auto-populated in his GSTR 3B.
Despite this, there may still be some cases, where the recipient is not able to correct the action taken on the IMS, resulting in wrong auto-population of ITC in GSTR 3B of the recipient or wrong auto-population of liability in GSTR 3B of the corresponding supplier. Therefore, during this initial phase of implementation of IM

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Show cause notices clubbing tax demands for multiple years quashed; Dept to issue separate notices per year.
Case-Laws
GST
Consolidated show cause notices for multiple assessment years contravene provisions of CGST Act and legal precedents. Impugned notices grouping demand from 2017 to 2023 quashed, with liberty to issue separate notices for each assessment year u/s 73 of CGST Act. Petition allowed, quashing impugned notices and further proceedings.
TMI Updates – Highlights, quick n

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GST Registration Cancellation: Authority's Role Questioned Over Alleged Error in Show Cause Notice; High Court Declines to Intervene.
Case-Laws
GST
Cancellation of GST registration – violation of Section 29(2)(a) of Central Goods and Services Tax Act, 2017. Respondent no. 2 is the proper authority to inquire about cancellation or suspension of GST registration and pass necessary orders. Although a notice might have been issued under an erroneous provision, petitioner no. 1 has liberty t

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Company wins ITC claim; delayed filings acceptable under GST law amendment.
Case-Laws
GST
The High Court set aside the assessment order disallowing Input Tax Credit solely on the ground of delayed filing of claims beyond the prescribed period u/s 16(4) of the GST Acts. The Court directed the assessing adjudicating authority to re-do the assessment considering the amendment. The petitioner was granted three weeks to submit objections after receiving the amended assessment and other detai

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Goods release ordered upon deposit & bank guarantee amid tax liability dispute.
Case-Laws
GST
Interim order directing release of goods upon depositing Rs. 4 lakhs challenged. Considering the order, determined liability of Rs. 22,35,932/- on respondent No. 1, and total goods value of Rs. 12,83,354/-, appeal disposed by upholding the order. Additionally, respondent No. 1 directed to furnish a Bank Guarantee from a Nationalized Bank for Rs. 8,83,354/- in favor of the Joint Commissioner of

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Court Invalidates Finance Ministry's Directive on Hand Sanitizer Tax Rate, Ensures Unbiased Product Classification.
Case-Laws
GST
The High Court held that the impugned Press Release by the Ministry of Finance, purporting to direct judicial and quasi-judicial authorities to classify all alcohol-based hand sanitizers as “disinfectants” attracting 18% GST rate, is invalid. The Court ruled that the executive cannot transgress on the functions within the exclusive province of judicial or qua

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Exporter's IGST refund regularized if import taxes paid later.
Circulars
GST – States
The 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. Initially, if inputs were imported without IGST and cess by availing exemption notifications, but later the exporter paid IGST, cess with interest and got the Bill of Entry reassessed, then the

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