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Case-Laws – GST – Highlights – The services provided by SMPK by way of granting a long-term lease of land at Taratala Road for a period of thirty years for setting up a commercial office complex to the applicant do not satisfy all the conditions specified in entry number 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. The services by way of granting a long-term lease of land by SMPK to the applicant for the purpose of “setting up a commercial office complex” are not covered under entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and therefore cannot be treated as an exempt supply. – 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 Advance Ruling Authority held that the exemption under Serial No. 77 of Notification No. 12/2017 – Central Tax (Rate) is member-specific for Resident Welfare Associations (RWAs). If an RWA collects up to Rs. 7,500 per month from a member as reimbursement of charges or contribution share, it shall not be liable to pay GST on such amount, irrespective of whether the contribution from other members exceeds Rs. 7,500 per month. The exemption applies individually to each member's contribution, not collectively to the RWA's total collections. Therefore, if an RWA registered under GST collects Rs. 7,000 from one member and Rs. 9,000 from another in the same residential complex, it shall not be liable to pay tax on the Rs. 7,000 amount. – 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 – Pure services provided by the applicant for survey, design, drawing, estimates, and comprehensive plan preparation related to water supply schemes qualify as services supplied to the State Government under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) project. These services relate to functions entrusted to Panchayats under Article 243G or Municipalities under Article 243W of the Constitution, such as drinking water supply for domestic, industrial, and commercial purposes listed in the Eleventh and Twelfth Schedules. Consequently, the applicant's services satisfy the condition specified in serial number 3 of the exemption notification regarding the status of the recipient and the nature of services provided. – 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 petitioner's registration under the WBGST/CGST Act, 2017 was cancelled due to non-filing of returns for a continuous period of six months. Although the petitioner filed an appeal, it was dismissed on the ground of limitation without adjudication on merits. The petitioner, a small businessman, claimed to have suffered losses during the pandemic. The respondents did not allege any dubious process to evade tax by the petitioner. Considering the suspension/revocation of license would be counterproductive and impact tax recovery, the respondents were directed to take a pragmatic view and permit the petitioner to carry on business. The petitioner's advocate undertook to comply with the Act's provisions and agreed to pay applicable tax, interest, fine, and penalty. The respondents were directed to activate the portal within one week to enable the petitioner to file returns and pay requisite amounts. The cancellation order dated 8th July, 2022, and the Appellate Authority's order dated 7th June, 2024, were set aside. The petition was 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 SCN and order for cancellation of GST registration did not contain any reasons, violating principles of natural justice. The respondents' contention regarding restrictions on document content cannot justify such orders. The allegation about signatures not being denied by respondents is sufficient to hold it correct. The entire process of issuing SCN and cancellation order without assigning reasons is a clear violation of natural justice principles. – 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 – Time of supply for continuous supply of goods under the CGST Act. Section 12(2) provides for fixing the time of supply as either the date of invoice or the date of payment, whichever is earlier. However, for continuous supply, the relevant period is the period for which the invoice is raised, rather than the point when the invoice is raised. In the present case, the petitioner was required to raise invoices for electricity supply by the 7th of the following month, as per the power purchase agreement. Thus, furnishing the refund application for the preceding month would be in accordance with the Act and Rules. The High Court allowed the writ petitions, setting aside the orders of the lower authorities. – 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 – Court found violation of principles of natural justice as petitioner did not receive notices for proceedings leading to impugned orders. Though e-mail service cannot be ruled out, cancellation of registration could have resulted in petitioner not checking that e-mail ID. Court treated present proceedings as notice, granted three weeks to file response, and remanded matter to adjudicating authority for fresh adjudication after giving proper opportunity to petitioner. Impugned order set aside. – 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 – Violation of principles of natural justice in issuance of show cause notice u/s 73(1) of the Central Goods and Services Act, 2017. Petitioner received the notice only on the date fixed for personal hearing, rendering the opportunity illusory. Despite petitioner's prompt communication informing receipt of notice on hearing date and requesting another opportunity, respondents proceeded without considering it. High Court set aside the order-in-original passed without adhering to principles of natural justice, disposing of the 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 – The petitioner's tax liability for the period 01.04.2021 to 01.01.2022 was in question. The court examined whether the respondent entity qualified as a government entity and whether the works executed by the petitioner met any of the conditions for concessional tax rate under N/N. 24/2017. The court held that the works aimed to create infrastructure for entrepreneurs and manufacturing units, and the respondent entity, though a government entity, conducted business by developing industrial parks and recovering costs from entrepreneurs. Therefore, none of the conditions for concessional rate applied, and the tax assessment at 18% by the respondent for the said period was upheld. The arrangement between the petitioner and respondent entity was that the latter would pay the tax due to the petitioner, who would then remit it to the GST Department. The HC disposed of the writ petition, affirming the impugned order for the tax period 01.04.2021 to 30.11.2022. – 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 writ petition challenging the jurisdiction of carrying out show cause notice proceedings and the scope for seizure or confiscation of cash. The court held that the petitioner cannot scuttle the show cause proceedings initiated under the GST enactments, despite a favorable order from the Tribunal in another case. The impugned show cause notice sought to appropriate the amount seized from the petitioner's partner on a specific date towards the petitioner's tax liability under the GST laws. The petitioner was directed to participate in the show cause notice proceeding by filing a proper reply within 30 days from the receipt of the order. – 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 granted custodial bail to the accused, who had no criminal antecedents, in a case involving illegal mining and revenue loss. The accused filed a petition directly before the High Court, which has concurrent jurisdiction u/s 439 CrPC. The court observed that dismissing the petition solely on the ground of bypassing the Sessions Court would deprive the accused of the statutory right to have the bail petition adjudicated by the Sessions Court first. Considering the duration of judicial custody and the stage of investigation, the court found no justification to continue detention. Relying on the Supreme Court's decision in Gurbaksh Singh Sibbia v State of Punjab, the court held that bail decisions must consider the cumulative effect of various circumstances. Accordingly, the court granted bail subject to fulfillment of certain conditions. – 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 – Excess stock found during inspection triggered proceedings u/s 130 read with Section 122 of UP GST Act. Court held that if excess stock is found, proceedings u/ss 73/74 of GST Act should be initiated, not Section 130 read with Rule 120. Impugned order passed u/s 130 read with Section 122 for excess stock cannot be sustained and is quashed. 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 – The High Court held that the show cause notice (SCN) issued for cancellation of the petitioner's Goods and Services Tax (GST) registration was vague and violated principles of natural justice. The SCN did not specify the date or time for personal hearing, nor did it provide proper reasons for the proposed cancellation, such as details of the alleged fraud, willful misstatement, or suppression of facts. Additionally, the SCN proposed retrospective cancellation without mentioning the same. The court emphasized that the purpose of an SCN is to enable the noticee to respond to allegations, and denying this opportunity violates natural justice. Consequently, the impugned order canceling the petitioner's GST registration was set aside as unreasoned and in violation of natural justice principles. The respondents were directed to restore the petitioner's GST registration immediately, though fresh proceedings for statutory violations or recovery of dues were permitted. – 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 petitioner challenged the differential tax liability demand for the financial years 2017-18 to 2021-22 and the attachment of the bank account. The court observed that although the respondent issued Form DRC-01A, and the petitioner replied, the subsequent Form DRC-01 was uploaded on the portal without the petitioner's knowledge. The petitioner blamed the accountant for not appearing before the authority. However, the court held that the assessee is responsible for appearing before the authority. Once the show cause notice is uploaded on the portal, the petitioner should have filed a reply within the stipulated time. The petitioner cannot blame the department for not providing a physical copy. The court opined that an opportunity to file a reply and a personal hearing before the authority should be granted to the petitioner, as the impugned orders were passed ex-parte, violating natural justice principles. Consequently, the court set aside the impugned orders and disposed of the 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 – The High Court set aside the order of the appellate authority rejecting the appeal on the ground of delay beyond the prescribed period. Despite the petitioner's representative's medical condition and reasons preventing timely filing, the appellate authority dismissed the appeal citing no scope for admission beyond four months from the order date. However, the court held this contrary to its earlier directive applying Section 5 of the Limitation Act, 1963, allowing condonation of delay beyond one month from the prescribed period. Considering the petitioner's bona fides, the substantial recovery already made, and the established principle of not gaining by filing a belated appeal, the court found the rejection unsustainable and disposed of the 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 – The court held that considering the petitioner has remitted the entire taxes and penalty, and was unable to present objections, the petitioner should be granted one final opportunity to appear before the respondent on 30.08.2024 along with objections and relevant documents. The impugned order dated 05.06.2023 passed by the respondent u/s 74 of the TNGST Act, 2017 regarding the mismatch between GSTR-1 and GSTR-3B is set aside. The petition is 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 order dismissing the appeal due to non-payment of the mandatory pre-deposit amount u/s 35F of the Central Excise Act, 1944 was challenged. The court relied on a previous judgment where it was held that there was no intent to avoid payment of the pre-deposit, and the Revenue Board had provided a facility for making such pre-deposits. Consequently, the court quashed the appellate order and revived the appeal, subject to the petitioner depositing the pre-deposit amount within two weeks, as per their undertaking. – 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 the impugned order alleging violation of principles of natural justice, being unaware of the order and preceding notices, and discrepancy between GSTR 1 and GSTR 3B filings. The High Court found the petitioner may have a case on merits, set aside the impugned order, and remitted the case to the respondent for fresh orders on merits and in accordance with law, subject to the petitioner depositing 25% of disputed tax within 30 days. The quashed impugned order shall be treated as an addendum to the preceding show cause notice. The petition was 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 – Non-application of mind in passing orders regarding carry forward of Input Tax Credit, resulting in violation of principles of natural justice. Orders quashed due to contradictory statements about personal hearing granted or not. Proper Officer directed to re-adjudicate Show Cause Notices after considering petitioner's reply and contentions that input tax credit was carried forward to next year without utilization in the same year. – 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 – Principles of natural justice violated due to errors apparent on record. Petitioner claimed inability to respond or participate due to unawareness of proceedings. Court held that tax computation erred by considering total turnover instead of turnover difference between profit and loss account and GSTR 9. Petitioner's explanation of unawareness unacceptable for a large corporate entity. However, substantial liability imposed without considering GSTR 9C reconciliation statement. Cumulatively, opportunity granted to petitioner to contest tax demand by remitting Rs.2.50 crore within four weeks and submitting reply with relevant documents. Impugned order set aside subject to compliance. 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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Case-Laws – GST – Highlights – The court held that the reversal of Input Tax Credit (ITC) by the department due to discrepancy between GSTR 3B and auto-populated GSTR 2A violated principles of natural justice as the petitioner was not provided a reasonable opportunity to contest the tax demand on merits. The court 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. The court emphasized the need to provide an opportunity to the petitioner to contest the tax demand on merits, albeit by putting the petitioner on terms. – 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:- 27-8-2024 – News – 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 above-said functionality has been developed by GSTN. It has been rolled out in Dadra and Nagar Haveli and Daman and Diu AND C

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t 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. 6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Dadra and Nagar Haveli, Daman and Diu AND Chandigarh. 7. After booking the appointment, 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. 8. At the time of the visit of GSK, the applicant is required to carry the following details/documents (a) a copy (hard/soft) of the appointment confirmation e-mail (b) the details of jurisdiction as mentioned i

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Case-Laws – GST – Highlights – Impugned order passed on 24.01.2024, prior to expiration of 30-day response period granted in show cause notice issued on 26.12.2023, violating principles of natural justice. Petitioner entitled to adequate time to gather defense materials like e-way bills, e-invoices after registration restoration on 22.01.2024. Failure to provide such opportunity renders impugned order invalid. Petition allowed by High Court. – 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) was cryptic and lacked specific details of allegations, merely referring to a statutory provision without providing any clue regarding transactions resulting in wrongful availment of Input Tax Credit (ITC). The SCN failed to satisfy the requisite standard, violating principles of natural justice by not enabling the petitioner to respond to allegations. Additionally, no date or time for personal hearing was communicated. The cancellation order was passed retrospectively without providing an opportunity to contest, further violating natural justice. However, considering the petitioner sought cancellation, the cancellation order was made operative prospectively from the SCN date, not retrospectively. 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 – Review petition dismissed for lack of grounds permissible under law. Court found no mistake or error apparent on record to warrant review of the impugned order passed with consent of parties. Petitioner's reliance on Bombay High Court decision misplaced as it dealt with typographical error. Petition devoid of merit, dismissed on contest without costs. Refusal of refund of ITC upheld, with protection granted earlier for filing appeal before GST Tribunal once constituted, subject to deposit of 20% remaining disputed tax amount. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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