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Case-Laws – GST – Highlights – Cancellation of GST registration without providing opportunity to be heard violated principles of natural justice. Appeal filed by petitioner rejected due to expiry of limitation period u/s 107 of CGST Act, 2017. Show cause notice issued to petitioner for failure to furnish returns for six consecutive months. Petitioner claimed no reply filed within stipulated period, denying principles of natural justice. However, petitioner failed to furnish returns for six months and filed appeal after delay of one year and twenty days, beyond three-month limitation period u/s 107(1). Petitioner's lethargic approach in not filing returns and delayed appeal filing led to dismissal of writ petition, as no perversity found in cancellation order or appellate order beyond statutory limitation period. – 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:- 29-11-2024 – News – Advisory: E-Invoice Glossary and Steps Dated:- 29-11-2024 – Dear Taxpayers, GSTN has prepared an informative resource in the form of an e-invoice glossary and a step-by-step guide for your reference. You can access and download the PDF document by clicking on the link below: 1. E-Invoice Glossary: https://tutorial.gst.gov.in/downloads/news/glossary_on_e_invoicing_v1_1.pdf 2. Step by Step Guide: https://tutorial.gst.gov.in/downloads/news

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Circulars – GST – States – Highlights – Applicability: The waiver provisions u/s 128A apply to cases involving tax demands u/s 73 for financial years 2017-18, 2018-19, and 2019-20, and cases involving erroneous refunds. To avail the waiver, the full tax amount demanded must be paid by the notified date, excluding amounts no longer payable due to retrospective amendments to Section 16(5) and 16(6). Procedure: Applications for waiver must be filed in prescribed forms, and proper officers will examine eligibility. Notices may be issued, and applicants can file replies. Orders approving or rejecting waiver applications will be issued, with deemed approval if no order is passed within the time limit. Appeals against rejection orders are allowed. Payments: Amounts paid towards the demand before the notified date, including by tax officers recovering from other persons, are considered payments for eligibility. Interest/penalty amounts cannot be adjusted against tax dues. Partial payments do not qualify for waiver. ITC can be utilized for payment, except for reverse charge/e-commerce operator liabilities and erroneous refund demands. Clarifications: The circular provides clarifications on various issues, including applicability to IGST/Cess demands, transitional credit demands, penalties under other provisions, import IGST. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – This trade circular clarifies issues regarding implementation of provisions related to input tax credit in sub-sections (5) and (6) of Section 16 of the CGST Act, 2017, inserted retrospectively from July 1, 2017. It provides guidance on various scenarios where demands were raised for wrong availment of input tax credit due to contravention of sub-section (4), but such credit is now available under sub-sections (5) and (6). Specific instructions are given for cases where no notice/order was issued, where notice was issued but no order, where appellate proceedings are pending, and where orders were passed but no appeal filed. A special procedure u/s 148 is notified for rectification of orders in eligible cases within six months. However, no refund of tax paid or credit reversed earlier is allowed u/s 150 of the Finance Act, 2024. The circular aims to ensure uniform implementation across field formations. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – Taxpayers can file applications for waiver of interest or penalty u/s 128A of CGST Act for demands related to erroneous refunds, transitional credits, and tax periods from 2017-18 to 2019-20. Applications must be filed after full payment of tax demanded, excluding amounts not payable due to retrospective amendments. Proper officers will examine applications, issue notices for rejection with opportunity for hearing. Orders accepting or rejecting waiver will be issued, with appeal remedies available against rejection orders. Detailed procedures, timelines, forms, and clarifications on various scenarios are provided for smooth implementation of the waiver scheme. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Circulars – GST – States – Highlights – The circular provides instructions for adjudication of show cause notices (SCNs) issued by various verticals under the Kerala State Goods and Services Tax Act, 2017. To ensure uniformity and consistency, a common adjudicating authority is designated for cases involving multiple taxpayers across the state interconnected in a single issue. Joint Commissioners of Taxpayer Services are empowered with state-wide jurisdiction for this purpose. The SCNs will be adjudicated by the Joint Commissioner of the district where the noticee with the highest tax/penalty demand is located. If multiple noticees are in the same district, the Joint Commissioner of that district will adjudicate all SCNs, irrespective of the amount involved. Connected penalty notices will also be adjudicated by the common authority. Previous circulars on the matter stand withdrawn, with actions already initiated remaining valid. – 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 supply of works contract services for dredging and rejuvenating Lamphelpat waterbody, a natural water body, to alleviate urban flooding, provide sustainable water source, and promote eco-tourism to the State Government of Manipur is exempted from tax under Serial Number 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 [corresponding State Notification No. 1136 F.T. dated 28.06.2017] and Serial No. 3A of Notification No. 9/2017 dated 28-06-2017 Integrated Tax (Rate). Although dredging a natural water body cannot be considered as removal of encroachment on public property, the supply is in relation to functions entrusted to a municipality under Article 243W of the Constitution, such as drinking water supply, environmental protection, and ecological promotion, as listed in the Twelfth Schedule. – 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 applicant entered into an agreement with the Central Hospital, South Eastern Railway to provide catering services by running the in-house kitchen, for which the hospital is liable to pay consideration. The issue pertains to whether the supply of food to inpatients by the applicant is exempt from GST as a composite supply of healthcare services or is taxable as a standalone supply of food. The authority held that the applicant is supplying services to the hospital, which provides healthcare services to patients. The supply of food by the applicant to the hospital is a standalone service and cannot be considered a composite supply of healthcare services. GST is payable on the service of supplying food, and no exemption is provided as the service is outsourced by the hospital, and the applicant is not a clinical establishment. The authority relied on the Telangana AAR ruling, which held that GST is payable on outsourced food supply services by hospitals. – 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's GST registration was cancelled as petitioner had stopped business at registered premises and issued fake invoices without actual supply of goods. Original authority found petitioner not conducting business at registered premises based on landlord's statement that premises were leased out to petitioner for iron and steel business from 2012 to May 2017, but thereafter no business conducted and premises leased to another person unrelated to petitioner. Original authority held details provided during VAT to GST migration were false, warranting cancellation of registration. Appellate authority upheld cancellation. High Court found no reason to interfere with findings, noting petitioner can apply for fresh registration if intending to restart business. Writ petition 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 – The High Court addressed the validity of a show cause notice (SCN) and final order issued against a non-existent entity, the rectification of procedural defects, and the applicability of Sections 160 and 87 of the CGST Act, 2017, concerning amalgamated companies. Section 87 seeks to preserve and identify transactions between companies that ultimately amalgamate, fixing liabilities under the CGST Act. However, it cannot enable issuing notices or orders against a non-existent entity, as the liabilities would transpose to the amalgamated entity. Consequently, the impugned SCN and order were quashed, and 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 – Section 16(4) of the CGST Act imposes a time limit for claiming input tax credit (ITC), restricting it to the due date of filing the return for September following the relevant financial year or the annual return, whichever is earlier. This provision violates Article 14 of the Constitution by arbitrarily depriving taxpayers of their right to claim ITC despite having paid taxes to suppliers. The GST laws lack provisions for revising returns, compelling taxpayers to exercise caution in filing March returns to reconcile entries. Allowing returns with late fees but disallowing ITC amounts to double punishment. Late fees and interest already compensate the treasury and deter delays. Imposing double tax through Section 16(4) is arbitrary and capricious. As the Central Government proposes to amend Section 16 by introducing Section 118, removing the time limit condition, the Court allows the petitions without examining Section 16(4)'s constitutional validity. – 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 petitioners are entitled to pay 10% of the disputed GST amount as a pre-condition for filing an appeal by debiting the amount available in the Electronic Credit Ledger. Section 49 of the TNGST Act allows the use of Electronic Credit Ledger for making any payment towards output tax. The word 'may' in the provision indicates it is not mandatory. Section 107(6) requires 10% of the disputed tax to be paid as a deposit, which means payment towards discharging output tax liability. Rule 86(2) allows debit from Electronic Credit Ledger for discharging liability u/ss 49, 49A or 49B. The circular dated 06.07.2022 clarifies that input tax credit can be utilized for payment of self-assessed output tax or tax payable due to proceedings under GST laws, including the 10% pre-deposit u/s 107(6). The statutory appeal form APL-01 also provides for pre-deposit payment through Electronic Credit Ledger. Therefore, the High Court quashed the impugned orders and directed allowing appeals where pre-deposit was made through Electronic Credit Ledger. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – The Central Board of Indirect Taxes and Customs has extended the due date for filing GSTR-3B returns for October 2024 till 30th November 2024 for registered persons having principal place of business in Manipur. This notification is effective from 20th November 2024 and issued u/s 39(6) of the Central Goods and Services Tax Act, 2017 on the recommendation of the GST Council. It provides relief to taxpayers in Manipur by extending the GSTR-3B filing deadline for October 2024. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – Notification amends earlier notification regarding constitution of Principal and State Benches of Goods and Services Tax Appellate Tribunal (GSTAT). Changes location of certain State Benches and notifies districts under their jurisdiction. Also notifies sitting/circuit locations for some State Benches along with districts under their jurisdiction. Covers all states/union territories, providing district-wise demarcation of areas under each Bench's purview. Enables proper administrative division for efficient functioning of GSTAT across the country. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Notifications – GST – Highlights – This notification amends Table V of Notification No. 02/2017-Central Tax, specifying the powers of Additional/Joint Commissioners of Central Tax to pass orders or decisions regarding notices issued by Directorate General of GST Intelligence officers under various sections of CGST Act, 2017 like 67, 73, 74, 76, 122, 125, 127, 129 and 130. It lists 23 Principal/Commissioners across India authorized to exercise these powers throughout the country. The notification comes into effect from December 1, 2024. – 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:- 27-11-2024 – News – Advisory: Authorised e-Invoice Verification Apps Dated:- 27-11-2024 – Dear Taxpayers, 1.GSTN has prepared a consolidated document on authorized B2B e-Invoice verification apps available for download. The said document would serve as a reference to ensure that taxpayers have the most up-to-date information regarding approved B2B e-Invoice verification apps. 2.Taxpayers could access and download the PDF document by clicking on the link be

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Goods and Services Tax – GST Dated:- 27-11-2024 – 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 Madhya Pradesh on 27th November 2024 . 3. The

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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 Madhya Pradesh. 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 in the intimation e-mail (c) Aadhaar Card and PAN Card (Original Copies) (d

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Goods and Services Tax – GST Dated:- 27-11-2024 – News – Advisory for Reporting TDS Deducted by scrap Dealers in October 2024 Dated:- 27-11-2024 – As per Notification No. 25/2024-Central Tax, effective from 10.10.2024 , any registered person receiving supplies of metal scrap classified under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) , from another registered person, is required to deduct TDS under Section 51 of the CGST Act, 2017 . 2.In this regard various tickets have been received on the issue that taxpayers are unable to report TDS deducted in the month October 2024 as they are not able to file return for the month of October 2024. This issue has occurred because while the taxpayers applied f

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Case-Laws – GST – Highlights – Confusion regarding cancellation of GST registration order – violation of principles of natural justice. No evidence of proper cancellation order or communication to Petitioner. Petitioner confused about whether remarks constituted order. Show cause notice required reply and personal hearing, but Petitioner neither replied nor attended. Petitioner filed physical reply later, but impugned remarks took no cognizance. Failure of natural justice as remarks uploaded after Petitioner's reply. Costs to be paid to Tata Memorial Hospital within four weeks, proof to be produced. Upon proof, personal hearing to be fixed, reasoned order to be passed after hearing and communicated properly. If costs not paid, Petition dismissed with additional costs payable. – 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 upheld the validity of the exemption notification dated 02.03.2023 issued u/s 3 of the U.P. Motor Vehicle Taxation Act, 1997. The notification imposed a condition that the vehicle must have been purchased in the State of Uttar Pradesh to avail the exemption. The Court held that Section 3 does not restrict the State Government's power to impose conditions for granting exemption. The condition regarding purchase of the vehicle within the State was found reasonable, as it allows the State to earn revenue through GST on such purchases. If vehicles are purchased from outside the State, the State loses that revenue. Therefore, the condition cannot be deemed unreasonable, and the petition challenging the notification 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 – The petitioner filed appeals against orders under CGST/SGST Acts after a delay of four years. The court held that it cannot normally exercise jurisdiction under Article 226 to extend the time limit for filing appeals u/s 107 of the CGST/SGST Acts, as per the Supreme Court's rulings in Singh Enterprises and Ketan V. Parekh cases. Although Section 5 of the Limitation Act may not apply, the benefit of Section 14 can be extended in rare cases with extraordinary circumstances, which were not present in this case. Despite Article 226 not fixing a limitation period for writ petitions, inordinate delay in filing can lead to dismissal. The petitioner's contention of illness was viewed with suspicion. Consequently, the writ petition was dismissed due to the failure to approach the court within a reasonable time and the absence of extraordinary circumstances justifying condonation of delay. – 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 order imposing tax liability and penalty for wrongful availment of CENVAT credit, alleging violation of principles of natural justice and non-consideration of explanations. The HC quashed the order, observing non-application of mind by authorities, non-production of relied-upon documents to petitioner, and failure to examine petitioner's explanations supported by expert opinions regarding use of raw materials in manufacturing process. The HC directed authorities to examine fabrics, provide report copy to petitioner, grant fair hearing opportunity, and pass reasoned order, upholding principles of audi alteram partem and concluding severe prejudice caused to petitioner due to lack of proper hearing. – 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 sought reimbursement of the additional 6% GST paid from 01.01.2022 to 30.09.2022, as the respondents were paying bills with 12% GST while the petitioner was paying 18% GST. The court held that Respondent No. 4, the State GST Department, confirmed the GST rate was enhanced from 12% to 18%, which Respondent No. 2, a government entity, is liable to pay. Respondent No. 2 was directed to pay the petitioner the 6% GST difference from 01.01.2022 to 30.09.2022 within three months, failing which the petitioner shall be entitled to 6% interest per annum from the date of entitlement. 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 – Interpretation of Section 16(5) of CGST Act regarding input tax credit. Circular issued by Government of India No. 237/31/2024-GST dated 15th October 2024. Petitioner entitled to file rectification application for consideration of input tax credit claim made in return filed, as indicated from demand-cum-show cause notice. Petitioner can file rectification application within stipulated time in circular, to be considered under newly incorporated Section 16(5) of CGST Act and Government Circular. Writ petition disposed of 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 – In the present case, the authorities levied penalty u/s 129(1)(b) of the Central Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act. However, the court observed that the authorities neither challenged the invoice nor the e-way bill produced by the petitioner, nor questioned the purchase of areca nuts from a third party, which were being supplied by the petitioner to the consignee. The petitioner relied on Circular No. 76/50/2018-GST, which states that if an invoice or specified document accompanies the consignment, either the consignor or consignee should be deemed the owner. The court also relied on a Division Bench judgment, which held that the Department is bound by the aforesaid circular, and if the invoice mentions the consignor's name, the consignor shall be deemed the owner. Consequently, the court quashed the order dated November 6, 2024, as illegal and unjustified, and directed the authorities to pass an order u/s 129(1)(a) and release the goods and vehicle upon payment of the penalty in accordance with the law. The writ 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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