Author: admin_gst

Healthcare IT/ITeS provider eligible for input tax credit on contract staffing services. Not barred by Sec 17(5), can claim u/s 16(1) of GST Act.
Case-Laws
GST
The Advance Ruling Authority held that the applicant, engaged in providing Information Technology (IT) and Information Technology Enabled Services (ITeS) for the healthcare sector, is eligible to avail input tax credit on contract staffing services received. The transaction does not fall under the categories barred by Section 17(

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AAR: Construction services for residential units <60 sq.m & commercial area <15% qualify for 8% GST after land value deduction.
Case-Laws
GST
Construction services for residential units less than 60 square meters attract 12% GST rate, reduced to 8% effective rate after deducting one-third value on account of land transfer, as per Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification 03/2019-Central Tax (Rate) dated 29.03.2019, specifically under entry 3

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AAR: Health insurance services for TNSG & reinsurance from abroad are GST exempt. ITC reversal follows Sec 17(2) & Rule 42.
Case-Laws
GST
Health insurance services provided by the applicant to Tamil Nadu State Government (TNSG) are exempted from GST under Serial Number 40 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 and corresponding TNGST Notification, as the supply is made only to the Government with total premium paid by them. Reinsurance of the health insuranc

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Cancellation order sans reasons violated precedents; notice & hearing mandatory pre-revocation to avoid business disruption if no dues.
Case-Laws
GST
The order cancelling petitioner's registration was passed without assigning any reasons, violating court precedents mandating reasons as the heart and soul of judicial and administrative orders. The appeal's dismissal on limitation grounds does not attract the doctrine of merger given the circumstances. Citing previous judgments, the court

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Petitioner denied natural justice; no notice u/s 73; failed to submit explanation despite adjournments; presumed delaying tactic; statutory remedy available.
Case-Laws
GST
Violation of principles of natural justice occurred as the impugned order was passed without following procedures u/s 169(1)(a) and 169(1)(b) of the GST Act. Petitioner was not served notice u/s 73. Despite granting adjournments, petitioner failed to submit explanation online or in person. Presumption was made that pe

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Order quashed, case remitted for fresh orders after depositing disputed tax. Treated as addendum to show cause notice. Partial relief granted.
Case-Laws
GST
Impugned order quashed, case remitted to pass fresh orders subject to petitioner depositing disputed tax amount. Impugned order treated as addendum to preceding show cause notice. Writ petition allowed, granting partial relief by providing opportunity to explain case after failure to notice hearing notices earlier, remedying time-ba

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Breakwater construction ineligible for input tax credit under GST. Not 'plant & machinery' for outward supply. Ensures ship safety, not production.
Case-Laws
GST
Breakwater construction not considered 'plant and machinery' for input tax credit eligibility under GST. Petitioner's services involve regassification of LNG, and breakwater ensures safety of berthed ships, not used for outward supply. Dictionary meaning of 'plant' indicates industrial activity/production place, which breakwate

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High Court Orders Reassessment of GST Cancellation; Dismisses Appeal as Time-Barred, Cites Article 226 for Legal Review.
Case-Laws
GST
The appeal was dismissed as barred by limitation, and the doctrine of merger does not apply when an appeal is dismissed due to limitation. The merits were not examined by the Appellate Authority. The High Court retains jurisdiction under Article 226 to examine the legality and validity of the original authority's order. Considering the petitioner's asser

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Enhancements to Address-Related Fields in GST Registration Functionalities
GST
Dated:- 4-7-2024

Dear Taxpayers,
The Following enhancements have been made to address-related fields in the registration functionalities: New Registration, Amendment Application (Core & Non-Core), and Geocoding Business Addresses. These enhancements are based on the analysis of tickets and user feedback. The details are as follows:
1. Update in Validations applicable while entering the address in address-related fields.
a. Address is in India:
* The fields PIN Code, State, District, and City/Town/Village are interlinked and must be selected from the autosuggestions.
* For other fields, taxpayer in addition to alphanumeric values can add limit

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c values and limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes ('), Hash(#), Period(.), Small Brackets (), Inverted Commas (""), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.
* Additionally, special characters are not allowed at the beginning of the entry for fields other than zip code, district and State.
2. Proper instructions have been added to address fields regarding input values that are allowed or not allowed for the specific field. When hovering over the icon, taxpayers would be able to view these instructions.
3. The above changes would not impact data already saved in the system, even if it contains special char

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Taxpayers – Regular, SEZ Unit, SEZ Developer, Composition, Input Service Distributer and Casual Taxpayers.
6. In addition, the field of locality/sub locality is not mandatory
i. If the Locality/Sub-locality field is left blank or is mapped to another Pin Code, the system displays the following warning messages: "Locality/Sub-locality does not match the Pin Code. Do you want to save the details?" or "You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?"
ii. Example: If you enter Pin Code 123456 but leave the Locality/Sub-locality field blank, you will see the message: "You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?

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GST Updates: Vehicle Leasing, Electricity Charges, Barley Processing, Mineral Trusts, and Landscaping Services Explained.
Circulars
GST – States
Clarifications provided on applicability of GST: 1) Leasing of motor vehicles without operators not included in 'same line of business' for passenger transport services, attracting higher GST rate. 2) Electricity charges reimbursed by lessees/occupants to real estate companies/malls taxable as part of composite supply of renting/maintenance ser

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Strict SOP for GST registration cancellation of fraudulent taxpayers. Curbing fake invoices, wrongful ITC claims. Evidence-based scrutiny, reasoned orders.
Circulars
GST – States
The circular provides a Standard Operating Procedure (SOP) for cancellation of GST registration of non-genuine taxpayers and creation of a repository of such entities. It outlines the background, legal provisions, procedure for cancellation initiated by the officer or on application, collection of evidence duri

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Services by directors in personal capacity exempt from RCM. Official services attract RCM. Cinema food taxed at 5% GST if unbundled.
Circulars
GST – States
Clarifications issued on applicability of GST Reverse Charge Mechanism (RCM) for services provided by directors to companies and taxability of food/beverages supplied in cinema halls. Services by directors in personal capacity like renting immovable property are not subject to RCM. Only services rendered in director's official capaci

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KGST Act: Recipient can avail ITC on RCM supplies from unregistered suppliers in FY when invoice issued, subject to conditions.
Circulars
GST – States
The circular clarifies the time limit u/s 16(4) of the KGST Act, 2017, for availing input tax credit (ITC) by the recipient on tax paid under reverse charge mechanism (RCM) for supplies received from unregistered persons. It states that where the recipient is liable to pay tax on RCM supplies from unregistered suppliers and issue an invoi

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Rule 28(1) KGST: Imported Services from Foreign Affiliates Can Be Valued as Nil Without Invoice if Fully Creditable.
Circulars
GST – States
Clarifies that in cases of import of services by a registered person in India from a related person located outside India, where the recipient is eligible for full input tax credit, the value declared in the invoice by the recipient shall be deemed as open market value as per the second proviso to Rule 28(1) of KGST Rules. Further, if no invoice is

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New Procedure for Manufacturers: Substitute Machine Details, Certify Energy Ratings, Report Sale Price Without MRP.
Circulars
GST – States
Circular clarifies issues related to special procedure for manufacturers of specified commodities. Unavailable machine details can be substituted with year of purchase or assigned numeric number. Electricity consumption rating can be certified by Chartered Engineer if unavailable. For goods without MRP, sale price to be reported. Practicing Chartered

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Petition dismissed for delay. Approach Appellate Commissioner after depositing 25% disputed tax (10% mandatory + 15% for delay). Deposit within 30 days.
Case-Laws
GST
Petition dismissed due to time limitation. Petitioners granted liberty to approach Appellate Commissioner u/s 107 of GST Act, subject to depositing 25% of disputed tax, with 10% being mandatory requirement u/s 107 and additional 15% for approaching court after expiry of limitation period. Petitioners directed to deposit 25

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Order quashed for denying oral hearing before adverse assessment. Mandatory hearing in heavy liability cases. Fresh notice to petitioner in 2 weeks.
Case-Laws
GST
Order set aside for violation of principles of natural justice by denying petitioner opportunity of oral hearing before passing adverse assessment order raising excess demand. Assessing Authority mandated to afford such opportunity irrespective of petitioner's choice. In assessment orders creating heavy civil liability, granti

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Tax notice missed online, court allows fresh hearing on depositing 10% tax. Order quashed, case remanded for new decision.
Case-Laws
GST
The court found the petition maintainable despite the time limitation, as the petitioner failed to notice the show cause notice (SCN) posted on the GST common portal. Partial relief was granted by quashing the impugned order and remitting the case back to the respondent for fresh orders, subject to the petitioner depositing 10% of the disputed tax fro

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Mismatch in tax credits claimed by petitioner. Court granted partial relief by cancelling tax demand, subject to Rs. 10,000 deposit. Fresh hearing ordered.
Case-Laws
GST
Discrepancies between input tax credit availed by petitioner in GSTR 3B and auto-populated GSTR 2A. Court granted partial relief by setting aside impugned order confirming IGST demand and interest, subject to petitioner depositing Rs. 10,000. Petitioner to file reply to show cause notice with deposit within 30 days. Imp

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Tax appeal allowed after deposit. Authority to decide swiftly within 3 months.
Case-Laws
GST
Petition maintainable, time limitation condoned. Petitioner allowed to file statutory appeal before Appellate Deputy Commissioner (GST), Trichy, upon depositing additional 25% of disputed tax. Appellate authority directed to entertain appeal and dispose it on merits expeditiously within three months of filing, in accordance with law.
TMI Updates – Highlights, quick notes, marquee, annotation

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Tax demand overlapped for same years. But lack of response to notices requires fresh orders after proper consideration.
Case-Laws
GST
Overlapping demand confirmed u/s 63 and Section 74 of TNGST Act for same assessment years cannot be challenged. However, petitioner's failure to reply to show cause notices preceding impugned orders necessitates remand for fresh orders on merits in accordance with law by respondents after detailed consideration. Petitions disposed off through remand.

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Applicant granted bail for false tax claims from fake firms! Multiple firms, no real business. High Court cites ARNESH KUMAR case.
Case-Laws
GST
The applicant sought regular bail for allegedly illegally claiming Input Tax Credit (ITC) through fake firms without conducting any business or supply of goods, contravening provisions of the CGST Act. Statements recorded u/s 136 of the CGST Act were considered relevant. Evidence showed the applicant operated multiple firms on a single PAN, cla

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High Court Quashes GST Cancellation, Orders Rehearing with 10% Deposit Due to Premature Action.
Case-Laws
GST
The petitioner's GST registration was cancelled due to failure to file returns and non-compliance with show cause notices. High Court found a contradiction as the registration was cancelled before the return period. The matter is remitted for fresh orders, and petitioner must deposit 10% disputed tax for a rehearing. Impugned orders quashed, treated as part of show cause notices

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Court Allows Late GST Appeal Filing Due to Lack of Online Notice; Orders New Hearing u/s 107.
Case-Laws
GST
The appeal filed by the petitioner u/s 107 of the West Bengal/Central Goods and Services Tax Act, 2017 was rejected. The petitioner argued lack of opportunity to respond to Show Cause Notice (SCN) online. The court found the delay in filing the appeal justified due to lack of knowledge of the order and allowed condonation beyond the prescribed period. The appellate authority's dec

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Interest on Delayed Tax Payment Under CGST Act Not Applicable from Cash Ledger Deposit Date to Return Filing.
Case-Laws
GST
The High Court addressed the demand for interest u/s 50 of the Central Goods and Services Tax Act, 2017. It clarified that interest on delayed tax payment is not applicable from the date of deposit in the electronic cash ledger until the filing of the return. The Court emphasized that interest is compensatory and can only be imposed from the due date of tax payment

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