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Case-Laws – GST – Highlights – The petitioner paid Integrated Goods and Services Tax (IGST) of Rs. 85,70,105/- on imported goods, which was not disputed. The petitioner availed Input Tax Credit of the paid IGST as permissible under the SGST Act. While filing GSTR-2A returns, the petitioner reflected the IGST details, but inadvertently omitted to include the same in GSTR-3B returns for July, August, September, and October 2017. The High Court set aside the impugned order, subject to conditions, upon the Special Government Pleader's submission that if relevant Bill of Entries are submitted, the authorities will consider the same. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Penalty levied u/s 73 of SGST and CGST for alleged discrepancy between value of supply reported in GSTR 3B and GSTR 1. Court held that Revenue did not have serious objection considering petitioner's willingness to pay 10% penalty and inability to participate due to ill-health. Impugned order set aside, directing fresh order after providing opportunity of hearing to petitioner. Petitioner to submit objection within two weeks, to be considered and orders passed in accordance with law after granting reasonable opportunity. Petition disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 4-9-2024 – News – Advisory on Reporting of supplies to un-registered dealers in GSTR1/GSTR 5 Dated:- 4-9-2024 – Vide Notification No. 12/2024 Central Tax dated 10th July, 2024 , the Government has reduced the threshold limit for reporting of invoice wise details of inter-state taxable outward supplies made to unregistered dealers from 2.5 Lakh to 1 Lakh which needs to be reported in Table 5 of Form GSTR-1 and Table 6 of GSTR-5 . In accordance with the new

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Case-Laws – GST – Highlights – The High Court quashed the order of cancellation of registration passed by the respondent authorities without providing an opportunity of hearing to the petitioner, despite a request for adjournment due to a medical emergency. The court observed that the impugned order lacked proper reasoning and supporting documentary evidence, and the authorities showed undue haste and an inhuman approach by not granting sufficient time. The matter was remanded to the respondent to provide an opportunity of hearing to the petitioner and pass a fresh order in accordance with law within twelve weeks. The petition was disposed of by way of remand, upholding the principles of natural justice. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Petitioner challenged determination made by respondents on 30th December 2023 u/s 73(9) of CGST/WBGST Act 2017, alleging violation of principles of natural justice without issuance of show cause notice in Form GST DRC-01 and without uploading on portal. Court observed petitioner was duly served show cause notice prior to adjudication order for tax period 2017-18 to 2022-23 through email as permitted u/s 169. However, summary of order was not uploaded on portal and Form GST DRC-07 uploaded belatedly on 14th June 2024 was defective. Court permitted respondents to upload summary of order along with Form GST DRC-07 on portal and disposed petition. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Order of cancellation of registration passed without giving reasons, appeals dismissed u/s 107 of GST Act. Appellate Authority's dismissal prevents revisional powers u/s 108. Impugned orders quashed, matter remanded to Assessing Officer at show-cause notice stage. Registration remains suspended till show-cause notice decided as per directions. Petition partly allowed, quashing orders, remanding to Assessing Officer, registration suspended till show-cause notice disposed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Non-compliance with provisions of the Goods and Services Tax Act, specifically Section 74(1) of the Central/Bihar Goods and Services Tax Act, 2017, was raised regarding the illegality in issuance of notice. The court held that there were no grounds to entertain the writ petition on the stated illegality, as an explanation was sought for the discrepancy, and the assessee's reply was found unsatisfactory. However, this was only a preliminary step leading to the demand cum show-cause notice. The assessee is entitled to appear and raise objections against Annexure-1, if proceedings are not concluded. Consequently, the writ petition was dismissed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Transitioning unutilized input tax credit under the Kerala Goods and Services Tax Act, 2017 – error in claiming input tax credit of unadjusted TDS. The High Court held that unadjusted TDS, being a component of output tax payable, cannot be transitioned as unutilized input tax credit. While the appellant had utilized Rs.37,24,463/- for paying output tax due under CGST/SGST Act, it was technically entitled to claim a refund of Rs.59,05,352/- representing unadjusted TDS or output tax paid in excess. To serve the ends of justice, the Court modified the orders to consider subsequent events since filing the writ petition. The disallowance of transition of TDS to the extent of Rs.21,80,889/- was upheld, and the appellant was allowed to seek a refund of this amount from the State Government towards unadjusted TDS. The penalties of Rs.3,72,446/- and Rs.25,000/- imposed were sustained, considering the irregularity by the appellant. The Writ Appeal was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – In a case concerning liability for Goods and Services Tax (GST) arising from civil contracts with government departments, the petitioner sought another opportunity to establish non-liability. The petitioner expressed willingness to remit 10% of the disputed tax demand as a condition for remand. The High Court, with a view to provide an opportunity to the petitioner, set aside the impugned order and remanded the matter for reconsideration, subject to the condition that the petitioner remits 10% of the disputed tax demand within two weeks and submits a reply to the show cause within the same period. The petition was disposed of by way of remand. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 3-9-2024 – News – To enable taxpayers to efficiently address invoice corrections/amendments with their suppliers through the portal, a new communication process is being brought at portal. This will also facilitate taxpayer in matching of their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). GSTN is in the process of developing a new functionality called Invoice Management System (IMS) which will allow the recipient taxpayers to either accept or reject an invoice or to keep it pending in the system, which can be availed later. 2. This facility shall be available to the taxpayer from 1st October onwards on the GST portal. The said functionality would be a major enhancement in the ITC ecosystem of GST. Now, only the accepted invoices by the recipients would become part of their GSTR-2B as their eligible ITC. Therefore IMS will provide the taxpayers an opportunity to review the genuineness and au

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led in GSTR 1 through GSTR-1A then same will also flow to IMS, however, ITC corresponding to the same will flow in GSTR-2B of the recipient, generated for the subsequent month only. The invoices which would be kept pending can be availed by taxpayers at any future point of time but not later than the limits prescribed by Section 16(4) of the CGST Act, 2017 . All the invoices/ records reported or saved by the supplier taxpayer in their GSTR 1 or IFF or GSTR-5 or GSTR-6 will be available in the IMS dashboard of the recipient taxpayer for taking the actions. Supplier will also be able to see, what action his recipient has taken on invoices in IMS. 5. Further, at the time of generation of GSTR-2B only the filed invoices/records by the supplier, will be considered for the computation of ITC. Based on the current cut-off dates and action taken by the recipient, a draft GSTR-2B will be made available to recipient on 14th of the subsequent month as currently being generated. However, the recip

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th, same will be carried forward in IMS itself for further action in subsequent months. This functionality is a facilitation for the taxpayers and will not add any compliance burden on the taxpayers as No Action records shall be considered as Deemed Accepted and the taxpayer s intervention will only be required in case a record need to be Rejected or kept Pending. QRMP Taxpayers: The records/invoices saved or filed through IFF by a QRMP taxpayer will flow to IMS for the recipient, and will become part of GSTR-2B , as per action taken by the recipient in IMS on the same. The GSTR-2B of the recipient will be generated monthly, unless the recepient is a QRMP taxpayer. It may be noted that GSTR-2B will not be generated for Month M-1 and M-2 for QRMP taxpayer. GSTR-2B for a QRMP taxpayer will be generated on Quarterly basis only. Flow of IMS: All the outward supplies reported in the GSTR 1 / IFF / 1A shall populate in the IMS of recipients for taking the actions. 1. Accept Accepted records

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s on IMS: 1. Deemed accepted: At the time of GSTR-2B generation, a record will be considered as Deemed Accepted if no action is taken on that record in IMS. 2. It is mandatory to recompute GSTR-2B from IMS dashboard in case of any change in action already taken on concerned records or any action is taken after 14th of the month i.e. date of generation of Draft GSTR-2B. 3. Following supplies will not go to IMS and will be directly populated in the GSTR 3B – a. Inward RCM supplies where supplier has reported in the Table 4B of IFF / GSTR 1 or GSTR 1A and b. supplies where ITC is not eligible due to section 16(4) of CGST Act or on account of POS rule. 4. Records will flow to IMS dashboard at the time of saving of record by supplier in respective form and recipient can take action on such record in IMS. However, such records will be populated in the GSTR-2B after filling of return in GSTR-1/IFF/1A by the supplier. 5. All the accepted/ deemed accepted/ rejected records will move out of IMS

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Case-Laws – GST – Highlights – The High Court found that the authorities had violated the principles of natural justice by cancelling the petitioner's registration without providing an opportunity for a hearing or assigning reasons. Despite a previous judgment directing the authorities to issue show cause notices and orders with necessary details in physical form, they issued cryptic notices and orders for cancellation without following the guidelines. The court remanded the matter back to the Assessing Officer at the show cause notice stage, with the petitioner's registration remaining suspended until the show cause notice is decided as per the directions. The petition was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Show cause notice lacking essential factual details and merely reproducing statutory provision violates principles of natural justice, depriving assessee of opportunity to file effective reply. Impugned show cause notice set aside as it fails to disclose minimum factual basis for invoking power u/s 29 of Central Goods and Services Tax Act, 2017. Mere reproduction of offending clause cannot validate a deficient show cause notice lacking minimum essential details. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Petition challenging adjudication order u/s 73(9) of CGST/WBGST Act, 2017 for reversing ITC availed in GSTR-3B filed after prescribed time limit u/s 16(4). Court noted Rs. 63,28,114/- was found reversible as per show cause notice. Considering proposed amendment in Finance Bill 2024 allowing ITC for returns filed till 30.11.2021 for FY 2017-18 to 2020-21, and petitioner having filed GSTR-3B for 2018-19 before 30.11.2021, interim order granted subject to deposit of Rs. 25 lakhs. Deposit to be invested in interest-bearing FD till further orders to avoid multiplicity of proceedings. Petition disposed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Goods and Services Tax – GST Dated:- 2-9-2024 – News – Gross and Net GST revenue collections for the month of Aug, 2024 Dated:- 2-9-2024 – Please click on the link below to view the gross and net G

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Case-Laws – GST – Highlights – The petitioner challenged the issuance of multiple audit memos determining tax liability beyond the stipulated period u/s 65(4) of the CGST/DGST Act. While the multiple audit memos indicating findings and demanding tax payment were irregular u/s 65(6), the impugned show cause notice (SCN) premised on the audit report findings is within the statutory framework. Any irregularities in issuing audit memos do not impinge the validity of the SCN. Therefore, the petition to quash the SCN at the threshold stage cannot be accepted, and the petition is disposed of. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court dismissed the petition challenging the provisional attachment of the petitioner's bank accounts u/s 83(1) of the CGST/DGST Act. The court held that the pre-condition of initiation of proceedings under Chapter XII, XIV or XV was satisfied as proceedings u/s 67 had commenced prior to the attachment order. The contention that the attachment order's validity was limited until the conclusion of Section 67 proceedings was rejected. The court clarified that the only requirement is the commencement of proceedings under the relevant chapters, which was fulfilled. The petitioner's argument that the order should be set aside due to the controversy involving a question of law was also dismissed, as the object of provisional attachment u/s 83(1) is to protect government revenue, irrespective of the nature of the controversy. The court found the attachment order justified to safeguard government revenue based on the estimated GST value allegedly unpaid by the petitioner. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The impugned show cause notice (SCN) for cancellation of GST registration was cryptic and failed to clearly outline the reasons, thereby violating principles of natural justice. It did not specify the alleged fraud, statements wilfully misstated, or facts suppressed. A show cause notice must enable the noticee to respond to allegations before any adverse order. The subsequent cancellation order also lacked reasoning, merely referencing the deficient SCN, and retroactively cancelled registration without proposing such action in the SCN. Despite allegations of availing ITC from non-existent firms and wrongful ITC passing, these were absent from the SCN. The petitioner's reply was unavailable due to illness, substantiated by medical proof. Consequently, the cancellation order was passed in violation of natural justice principles and set aside, with directions to restore the petitioner's GST registration forthwith. The petition was allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The court held that the impugned order and consequential recovery notice were issued in violation of principles of natural justice as the petitioner was not afforded an opportunity to establish their case before the authorities. The tax demand was recovered from the petitioner without due process. Consequently, the court set aside the impugned order and recovery notice. The matter was remitted back to the respondent authority for reconsideration after allowing the petitioner to file a reply and granting a personal hearing. The writ petition was disposed of accordingly. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court quashed the orders passed by the respondent assessing officer for violating principles of natural justice by not providing an opportunity of personal hearing to the petitioner, despite the petitioner seeking additional time to file replies to show cause notices. The Court remanded the matters back to the respondent for fresh consideration after setting aside the impugned orders, subject to the petitioner paying 10% of the disputed tax demand for each assessment year within six weeks. The case pertained to discrepancies in Input Tax Credits for multiple assessment years from 2018-19 to 2022-23, wherein show cause notices were issued through an online portal, and the petitioner had filed replies but was denied a personal hearing before passing of final orders. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – One-day delay in filing GSTR-3B for September 2020 led to reversal of ITC. Petitioner filed GSTR-3B on 23.10.2020, one day late. Respondent issued Form GST DRC-01A on 22.03.2024, proposing tax, interest, and payment by 05.04.2024. On non-payment, respondent initiated section 73(1) proceedings and issued impugned show cause notice dated 16.05.2024. GST Council recommended extending GSTR-3B filing deadline for 2017-18 to 2020-21 retrospectively from 01.07.2017. Court held one-day delay deserved consideration and reversal of ITC u/s 73(1) detrimental to petitioner's interest. Show cause notice dated 16.05.2024 set aside, writ petition allowed. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Impugned orders were passed against petitioner without serving show cause notice or providing opportunity for personal hearing, violating principles of natural justice. Mere uploading of notices on GST Portal under 'View Notice and Orders' and 'View Additional Notices and Orders' tabs cannot be deemed sufficient service. As a small concern, petitioner was unaware of notices on portal until contacted by department. Orders passed ex parte without hearing petitioner are unsustainable and violate Articles 14 and 19(1)(g) of Constitution. Impugned orders set aside and matter remanded to department for fresh consideration after providing opportunity to petitioner. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Order quashed due to violation of natural justice principles by not granting proper opportunity for personal hearing. Excess input tax credit availed on inputs subject to reverse charge mechanism and non-reversal of credit on reversed credit notes. Matter remanded for reconsideration after granting personal hearing to petitioner within stipulated timeframe. Final orders to be passed in accordance with law after following due process. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – The High Court rejected the application for grant of anticipatory bail filed by the applicants u/s 438 of the Criminal Procedure Code. The Court held that the application was not maintainable as the summons were issued u/s 70 of the CGST Act, 2017, which deals with the power of the appropriate officer to summon any person to give evidence or produce documents in an inquiry. The Court distinguished this from Section 69, which deals with the power to arrest a delinquent person. The Court relied on the Supreme Court's decision in Choodamani Parmeshwaran Iyer & Anr, which held that provisions of Section 438 cannot be invoked if summons are issued u/s 69. The Court found no significant difference between Sections 69 and 70 and held that the application for anticipatory bail was not maintainable and liable to be rejected. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – Notification No. 56/2023 prima facie appears ultra vires Section 168A of CGST Act, 2017 due to lack of GST Council recommendation, rendering consequential actions based on it invalid. Court finds examination required regarding force majeure applicability based on 49th GST Council meeting minutes, granting respondent authorities opportunity to present stance and materials. Interim protection granted to petitioners against impugned assessment order dated 26.04.2024 with no coercive action permitted until next date. Respondents directed to file affidavits by 19.08.2024. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Case-Laws – GST – Highlights – This case deals with the classification of supply and taxability under GST for the handover of building, civil structures, and railway siding constructed by the applicant on government land to a new lessee (OMCL). The key points are: 1) The transfer of building without ownership rights in the underlying land does not constitute a 'sale' under GST. 2) The consideration received by the applicant from OMCL for handing over the constructed assets is not merely a monetary transaction but constitutes a supply of service. 3) The applicant's agreement to refrain from removing the constructed assets against consideration from OMCL is treated as a supply of service under Entry 5(e) of Schedule II of the CGST Act. 4) This service is classifiable as 'Other Miscellaneous Service' (SAC 999792) and taxable at 18% GST rate. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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