Goods and Services Tax

Case-Laws – GST – Highlights – The respondent, engaged in selling medicines with GSTIN 24AFKPG7000FIZZ, failed to pass on the benefit of GST rate reduction from 28% to 18% on the product “Eclat Serum 30gm” (HSN 33049910) to the recipients, effective from 15.11.2017 as per Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. This contravened Section 171(1) of the CGST Act, 2017. The profiteered amount is determined as Rs. 2,06,100/- u/r 133(1) of the CGST Rules 2017. The respondent is required to pass on the profiteered amount of Rs. 2,06,100/- along with 18% interest from the date of collection till payment, as per Rule 133(3)(b). Although the respondent committed an offence u/s 171(3A) by denying the rate reduction benefit, penalty cannot be imposed retrospectively as Section 171(3A) was inserted effective 01.01.2020. – 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 show cause notice issued to the petitioner for cancellation of GST registration lacked specific reasons for alleged fraud, willful misstatement or suppression of facts. Consequently, the order canceling the petitioner's GST registration was set aside due to violation of principles of natural justice. The court directed the authority to provide all documents referred to in the show cause notice to the petitioner within ten days to protect the petitioner's interests, 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 High Court held that u/s 54 of the Goods and Services Tax Act, 2017, when the input tax credit paid is higher than the output tax, the dealer is entitled to seek a refund of the excess amount. The Court rejected the Revenue's argument that the dealer voluntarily paid excess tax, as the legislative intent is to provide a refund when the input tax credit exceeds the output tax. In the present case, the dealer was entitled to a refund as the output tax was only 5%, while the input tax credit was 18%. Regarding the interest rate, the Court modified the 9% rate awarded by the writ Court to 6%, payable by the Revenue from the date of expiry of sixty days from the Original Authority's order u/s 54(5). The writ appeals filed by the Revenue were 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 notification bearing No. 56/2023 is ultra vires Section 168A of the CGST Act, 2017 as it lacks the mandatory recommendation of the GST Council. Consequently, actions based on such notification are invalid. The petitioner is entitled to reliefs proposed in the Financial Bill 2024. Examination is required regarding applicability of force majeure for extending time limit u/s 73(9) considering the 49th GST Council meeting minutes. Respondent authorities should present their stance and materials claiming force majeure applicability. Interim protection granted to petitioner against impugned assessment order dated 24.04.2024, with no coercive action permitted until the next hearing date. – 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 – Cancellation of GST registration due to failure to file monthly returns for six consecutive months. Court followed Suguna Cutpiece judgment, directing restoration of registration subject to conditions: filing pending returns, paying tax dues with interest, and late fees within 45 days. Restoration contingent upon fulfilling stipulated conditions. Consistent approach maintained to ensure uniformity in judgments. – 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 case pertains to the admissibility of Input Tax Credit (ITC) on the 'Rotary Parking System' falling under HSN code 8428 and the blocking of credit u/s 17(5) of the CGST/TNGST Act, 2017. The appellant renders 'Renting of Immovable Property Service' and proposes to install a 'Rotary Car Parking System' within the premises, not inside the building, to provide parking facilities to tenants and customers. The exclusion clause 'other than plant and machinery' in Section 17(5)(c) and (d) conveys that ITC on 'plant and machinery' is not blocked, but the 'Rotary Parking System' is considered a 'civil structure' excluded from the definition of 'plant and machinery'. The service of 'Renting of Immovable Property' includes common areas and facilities, making the 'Rotary Parking System' part of the immovable property being rented out. Therefore, the input tax credit on the purchase of the 'Rotary Parking System' becomes ineligible u/s 17(5)(d) of the CGST/TNGST Acts, 2017, as it amounts to construction of an immovable property. – 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 – Statutory bail provision u/s 167(2)(a)(ii) of CrPC is a beneficial provision granting relief to accused if investigating agency fails to complete investigation within stipulated time. Right to apply for statutory bail is a Constitutional right recognized by Apex Court. Initial serious allegations of tax evasion and unscrupulous means to pass undue advantage of Input Tax Credit generated by bogus entities on fictitious invoices were made. However, no complaint filed till date despite lapse of over five years, raising doubts about petitioner department's intent to take case to logical conclusion. Lack of merits in petition led to its dismissal 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 – GST Authorities invoked penal provisions under Indian Penal Code against the petitioner without invoking penal provisions of GST Act, despite the alleged offences being covered under GST Act. This was done without obtaining sanction u/s 132(6) of GST Act. The court held that GST Act is a special legislation dealing with GST-related procedures, penalties, and offences. Authorities cannot bypass the prescribed procedure for launching prosecution under GST Act by simply invoking IPC provisions without invoking GST Act provisions, especially when allegations constitute offences covered under GST Act. Doing so would amount to bypassing procedural safeguards like obtaining commissioner's sanction u/s 132(6), prejudicing the petitioner. Allowing authorities to adopt such a course would be an abuse of process of law, which cannot be permitted. Consequently, the petition was allowed, quashing the prosecution launched without following due process under GST Act. – 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 adjudication order u/s 73 of CGST/WBGST Act, 2017 regarding discrepancies in returns, short payment of tax, and excess availment of Input Tax Credit (ITC). Court directed proper officer to afford fresh opportunity of hearing to petitioner. Considering determination already made, petitioner directed to deposit pre-deposit sum of Rs.10 lakhs within two weeks. Upon deposit, proper officer to decide matter afresh after hearing petitioner, who can rely on additional documents. Deposit to be retained till fresh decision. Writ 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 High Court set aside the impugned assessment order that disallowed Input Tax Credit solely on the ground of delay u/s 16(4) of the GST Acts. The Court directed the assessing authority to re-do the assessment considering the amendment and reconsider the petitioner's submissions on three other issues: ineligibility u/s 17(5), ineligible ITC declaration, and excess ITC claimed due to outward supplies not supported by E-way bills and discrepancies between GSTR-9 and GSTR-1. The petitioner was granted four weeks to file objections on all issues, including Section 16(4). 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 – Principles of natural justice violated due to improper service of show cause notice (SCN). SCN and impugned order uploaded on GST portal, but mismatch between GSTR-7 and GSTR-3B returns. Impugned assessment order set aside. Petitioner directed to deposit 25% of disputed tax within two weeks. Upon compliance, assessment order treated as SCN, and petitioner granted four weeks to file objections with supporting documents. Respondent to consider objections after providing reasonable opportunity of hearing. 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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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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