Author: admin_gst

Petitioner entitled to refund of unutilized ITC on exports. BRCs for realization suffice; can't reject refund for delay in BRC submission.
Case-Laws
GST
The High Court held that the petitioner is entitled to refund of unutilized Input Tax Credit (ITC) on export of goods u/s 16(3) of the Integrated Goods and Services Tax Act, 2017. The petitioner furnished Bank Realization Certificates (BRCs) evidencing realization of sale proceeds, and the application for refund could not be rejected so

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Petitioner's Input Tax Credit claim rejected due to lack of supplier certificates & GSTR mismatch. Recovery stayed for 3 months.
Case-Laws
GST
Petitioner failed to substantiate Input Tax Credit claim due to lack of supplier certificates. Discrepancy noted between Input Tax Credit availed in GSTR 3B and auto-populated in GSTR 2A. Electronic Credit Ledger balance after adjustment indicates inadequate explanation. Petitioner's credit tax position appears incorrect, unable to avail claimed

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RBI penalties for law violations & vendor liquidated damages not taxable under GST as per circular. Disciplinary, not service consideration.
Case-Laws
GST
Penalties, late fees, penal interest, and fines levied by RBI for contravention or violation of laws are for maintaining discipline and deterrence, not consideration for services, hence not taxable under GST as per circular. Penalties for non-performance or underperformance by vendors as per contract with RBI are liquidated damages to

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Govt company with equal Central & State equity denied exemption on leasing services as govts own >20%. 18% GST applicable.
Case-Laws
GST
Applicant, a government company established by Central and State governments with 50% equity participation each, sought advance ruling on eligibility for exemption under Sr. No. 41 of Notification No. 12/2017-Central Tax (Rate) for leasing services provided. The Authority ruled that since the Central/State government has 20% or more ownership in the

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Error not apparent, refund customers first. “Other charges” classification not rectifiable. AAR upheld for equity & uniformity.
Case-Laws
GST
Rectification application dismissed as error not apparent on record. Excess GST collected from customers to be refunded to them before claiming refund from tax authorities to avoid unjust enrichment. Classifying “other charges” as consideration for construction services under HSN Code 9954 or separate services under respective heads not a rectifia

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Polymer Coating for Bridges: Classified as Works Contract, Taxed as Service; Rates Vary Over Time per CGST Act.
Case-Laws
GST
The works rendered by the applicant involving application of polymer protective coating for bridges, as part of construction or routine maintenance/renovation, falls under the definition of “works contract” u/s 2(119) of the CGST Act, 2017, and will be treated as supply of service under Service Code 995473. The composite supply of such works contract for construc

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Refund Application Valid, Court Quashes Rejection on Limitation Grounds; Original Filing to Be Considered on Merits.
Case-Laws
GST
The petitioner filed a refund application within the two-year limitation period for the year 2017-2018 on 17.09.2018, and subsequently filed a fresh refund application on 2.01.2020 after receiving a deficiency memo. The High Court held that the original refund application filed on 17.09.2018 would be considered a proper refund application within the limitati

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Advisory in respect of Changes in GSTR 8
GST
Dated:- 2-8-2024

Please refer to the GST Council decision to the effect that TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.
Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:
1. Period from 1st July to 9th July 202

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Gross and Net GST revenue collections for the month of July, 2024
GST
Dated:- 2-8-2024

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

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Hybrid Annuity Mode: Unified Contracts for Highway Construction, Maintenance, and Continuous Service Payments.
Circulars
GST – States
Under Hybrid Annuity Mode (HAM) for National Highway Projects, concessionaire constructs new road and provides Operation & Maintenance over 15-17 years with payment staggered over years. HAM contract is single contract for construction and O&M, cannot be split into separate contracts. Payment is continuous supply of services u/s 2(33). Time of supply is d

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Custodial services by banks/FIs to FPIs not treated as services to 'account holder' u/s 13(8)(a) IGST Act. Determined under default 13(2).
Circulars
GST – States
Clarification provided that custodial services provided by banks or financial institutions to Foreign Portfolio Investors (FPIs) are not treated as services provided to 'account holder' u/s 13(8)(a) of IGST Act. Such services are not covered u/s 13(8)(a). Place of supply of custodial services to FPIs is to be determined under d

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal
GST
Dated:- 2-8-2024

Dear Taxpayers,
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 a

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point 3(a), she/he can proceed with the application as per 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

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Excess stock triggers GST Act Sections 73/74, not Section 130. Court quashes orders invoking Section 130 for excess stock found during survey.
Case-Laws
GST
Excess stock found during survey triggered initiation of proceedings against petitioner. Court held if excess stock found, proceedings u/ss 73/74 of GST Act should be invoked, not Section 130 read with Rule 120. Court relied on previous judgment holding excess stock attracts Sections 73 & 74, not Section 130 read with Rule 122. Law

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Petitioner allowed to rectify GST returns beyond time limit u/s 39(9) as no revenue loss. Respondents to open portal for amendment.
Case-Laws
GST
Petitioner sought rectification of errors in GST returns due to non-compliance with time limitation u/s 39(9) of CGST Act. Court held no revenue loss if rectification permitted, relying on Star Engineers case. Respondents directed to open portal within a week to enable petitioner to amend GSTR-1 and GSTR-3B within a week. Petition disposed.

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Petitioner challenged ITC mismatch order. Court set aside order, remitted case for fresh orders considering amended Rule 36(4).
Case-Laws
GST
Petitioner challenged order u/s 74 of TNGST Act, 2017 for assessment year 2017-18 due to mismatch between GSTR 3B and auto-populated GSTR 2A regarding input tax credit. Court held that respondent failed to consider changes in CGST Rules, 2017, particularly Rule 36(4). Difference between GSTR 2A and GSTR 3B attributable to mismatch for supplies by

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Geo Membrane classified under Chapter 59, not 39 as per CTM case. GST 12% from 15.11.2017, not 18%. Discounted rate applies.
Case-Laws
GST
Classification dispute regarding Geo Membrane manufactured by petitioner – whether to be classified under Chapter 59 or Chapter 39 of Tariff. Court relied on Coordinate Bench decision in MESSERS CTM TECHNICAL TEXTILES LTD case, holding product falls under Chapter 59, not Chapter 39 as ruled by Gujarat Advance Ruling Authority. Petitioner liable to pa

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Refund claim time limit challenged. Online GST appeal filed timely on 31.10.2022. Hard copy not required. Impugned order set aside.
Case-Laws
GST
Refund claim time limitation was challenged – Appeal filed online on GST portal on 31.10.2022 within prescribed period as per Rule 108(1) of GST Rules – Order appealed against was uploaded on common portal, thus filing hard copy not required u/r 108(3) proviso – Even otherwise, hard copy filing merely procedural – Impugned order rejecting appe

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Petition Dismissed: Alternative Remedy Available Under GST Act Section 107; Disputed Facts Require Appellate Review.
Case-Laws
GST
The petition is dismissed as an alternative efficacious remedy is available to challenge the impugned order u/s 107 of the GST Act. While violation of natural justice and vires of Section 16(2)(c) are grounds to entertain the writ, disputed questions of fact regarding opportunity of hearing and composite invocation of Section 16(2)(b) and 16(2)(c) necessitat

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Seat covers permanently fitted over raw foam seats by OEMs/seat manufacturers are classifiable under HSN 9401 or Sl. No. 435A, not 940120 or 8708.
Case-Laws
GST
Seat covers designed to permanently fit over raw foam seats of vehicles by OEMs or seat manufacturers are classifiable under HSN 9401 as “Seats and parts thereof other than aircraft seats” or Sl. No. 435A under Schedule III of N/N. 1/2017-Central tax (rate) dt. 28.06.2017 as amended. Seat covers are accessories for protection an

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Mangala Borosan and G1 Not Classified as Fertilizers Due to Lack of Essential Elements; Upheld by AAAR Decision.
Case-Laws
GST
Mangala Borosan and Mangala G1 are not classifiable under Chapter Heading 3105 as Fertilisers as they lack essential fertilizing elements like Nitrogen, Phosphorus, or Potassium as stipulated by Chapter Notes. Classification is determined by product description, inclusion/exclusion in Section/Chapter Notes, and General Rules of Interpretation, not claimed usage

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Applicant's Services to Agriculture Not Composite Supply Under GST; No Joint Venture with Shell per Section 2(30.
Case-Laws
GST
Supply of support services to agriculture, forestry, fishing, animal husbandry by applicant is not a composite supply under GST law. Applicant makes distinct supplies to Shell and farmers, not a single supply to one recipient. Supplies to Shell and farmers cannot be clubbed as composite supply per Section 2(30) of CGST/SGST Acts. Applicant obtains carbon credit

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Ministry of Finance establishes GST Appellate Tribunal with Principal Bench in Delhi, 36 State Benches across India from Sep 1, 2023.
Notifications
GST
Pursuant to sections 109(1), (3) and (4) of the Central Goods and Services Tax Act, 2017, the Ministry of Finance constituted the Goods and Services Tax Appellate Tribunal (GSTAT) with effect from September 1, 2023. The Principal Bench was established in New Delhi, and 36 State Benches were constituted across various locations. The notif

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Detailed Manual and FAQs on filing of GSTR-1A
GST
Dated:- 1-8-2024

As per the directions of the Government vide notification no. 12/2024 dt 10th July 2024, Form GSTR-1A has been made available to the taxpayers form July 2024' tax period. GSTR-1A is an optional facility to add, amend or rectify any particulars of a supply reported/missed in the current Tax period's GSTR-1 before filing of GSTR-3B return of the same tax period.
GSTR-1A shall be open for the taxpayer after filing of

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Petition maintainable despite pending appeal on different cause. Claimed ITC refund for exports Sep'19-Jan'20. Approach appellate authority.
Case-Laws
GST
Maintainability of petition challenged on different cause of action. Petitioner claimed refund/Input Tax Credit for purchase of goods utilized in manufacturing and export of garments from September 2019 to January 2020. Though Special Appeal pending before Court on writ petition, cause of action different. Writ petition disposed, dire

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Court Grants Bail, Quashes Summons & Non-Bailable Warrant in Tax Liability Case Under Finance Act & CGST Act.
Case-Laws
GST
Quashing sought of summoning order and non-bailable warrant against applicant u/ss 89, 83 of Finance Act, 1944, Section 174 of CGST Act, 2017 and Section 9 r/w Section 9(AA) of Central Excise Act, 1944 regarding tax liability on services provided by applicant to educational institutions between April 2014 and June 2017. Application disposed of, subject to condition

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