Goods and Services Tax

Case-Laws – GST – Highlights – The HC upheld the blocking of account and Input Tax Credit u/s 74 of the CGST Act, 2017 for wrongful availment of ITC showing fake invoices as the concerned firms were found non-existent. Section 86-A was rightly exercised based on prima facie view without issuing show cause notice to protect revenue. However, the HC directed respondents to pass final order expeditiously, preferably within one month, and allowed petitioner to operate account as over 1.5 years elapsed since blocking. – 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 – HC allowed taxpayers to move application for rectification to avail input tax credit under CGST Act within six months from 15.10.2024 i.e. upto 15.04.2025 as per special procedure u/s 148 notified vide notification No. 22/24 dated 08.10.2024. Petitioner permitted to move application accordingly. 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 HC allowed the petition filed u/s 482 CrPC. It set aside the trial court's condition directing the petitioner, accused of fraudulently availing Input Tax Credit under the CGST Act, to deposit Rs. 1 crore for bail. The HC held that while courts can accept cash security when the accused cannot furnish sureties, directing deposit of a substantial sum should be avoided. Considering the gravity of the Rs. 8 crore offence, the HC directed the petitioner to submit his passport to the trial court and not leave India without its permission, instead of depositing Rs. 1 crore. – 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 – HC quashed the order and restored the adjudication of show cause notice to the respondent authority. Petitioner is entitled to relief. Adjudicating authority's findings on ownership of goods were contradictory. It failed to properly consider the effect of notification treating amounts obtained through KIIFB as grant from government. Respondent directed to pass fresh order after hearing petitioner, considering whether absence of consideration precludes 'supply' u/s 7 of CGST Act, and whether KIIFB amounts should be treated as government grant under the notification. – 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 HC rejected the bail applications of the accused involved in large-scale GST fraud, money laundering and corruption by registering fictitious firms using misused Aadhaar and PAN cards. The accused were charged with offences u/ss 420, 467, 468, 471, and 120-B IPC. Considering the grave economic offences impacting society, the money trail of crores, the accused's influential position, and the likelihood of tampering with evidence or witnesses, the HC denied bail, upholding the principle that bail is an exception in such cases affecting the economic fabric. The relevant part of the accused's statement leading to the discovery of laptops, mobiles, SIM cards and fake invoices is admissible u/s 27 of the Indian Evidence Act. – 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:- 19-12-2024 – News – CBI Arrests CGST Inspector of Tirupati GST Commissionerate alongwith Representative of a Private Firm for Demanding and Accepting Rs. 3.2 lakh as Bribe Dated:- 19-12-2024 – CBI today arrested CGST Inspector of Tirupati GST Commissionerate alongwith representative of a Chittoor based private firm for demanding and accepting Rs. 3.2 lakh as bribe from accused representative of the said private firm. CBI registered a case on 17.12.2024 against four accused including Assistant Commissioner, Superintendent Inspector, all of the O/o. Commissioner of Central Tax, Tirupati GST Commissionerate, Tirupati and a Representative of Chittoor based private firm unknown public private persons on al

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ntative of Chittoor based private firm to settle the matter of the said firm allegedly found to be working from the premises of another firm. CBI laid a trap and accused Inspector and accused representative of the said private firm were intercepted today while the transaction of bribe took place between them and the bribe amount of Rs. 3.2 lakh was recovered from the said Inspector, O/o. Commissioner of Central Tax, Tirupati GST Commissionerate, Tirupati. Accused Inspector, Central Tax and accused representative of Chittoor based private firm have been arrested. They will be produced before the Hon ble Special Judge for CBI Cases, Kurnool on 18.12.2024. Searches are being conducted in Tirupati and Kadapa at the residential and office premis

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Case-Laws – GST – Highlights – HC upheld detention of goods and vehicle under Sec 129 of WBGST Act. Discrepancies between declared description and physical verification of goods, valuation gap indicated misrepresentation, intent to evade tax. Petitioner failed to substantiate legitimate trade practices or unreasonable valuation. HC found no procedural or legal infirmities in orders of adjudicating and appellate authorities. Regulatory measures under GST laws necessary, don't violate fundamental rights. Writ petition dismissed, detention order, tax demand, penalties under WBGST and CGST Acts affirmed. – 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 – IGST levied on imported goods for FY 2019-20 – Petitioner's challenge to extension notifications dismissed; directed to exhaust statutory appeal remedy first. If appeal unsuccessful, liberty to challenge notifications. HC declines to entertain petition at this stage based on precedents of Oberoi Constructions and Alkem Laboratories; 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 HC held that the arrest of the petitioner on 30th November 2024 was illegal and the remand order dated 30th November 2024 was set aside. The petitioner was directed to be released from judicial custody forthwith, if not required in any other matter. The HC found discrepancies in the summons issued to the petitioner, raising doubts about the detention process. The remand order failed to address the issue of non-supply of written grounds of arrest, amounting to a mechanical order without application of mind. The HC emphasized that the pre-conditions for arrest act as stringent safeguards to protect the life and liberty of individuals. – 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 HC held that telecommunication towers cannot be construed as immovable property falling within the ambit of Section 17(5)(d) of the CGST Act, rendering them ineligible for input tax credit. Relying on the SC's decision in Bharti Airtel, the HC observed that telecommunication towers are movable equipment used in telecommunications, lacking the essential characteristics of immovable property. Section 17(5) specifically excludes telecommunication towers from the definition of “plant and machinery,” indicating the statute does not envisage them as immovable property. Consequently, the denial of input tax credit on telecommunication towers by the respondents was held unsustainable, and the appeal 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 – HC permitted petitioner to file statutory appeal u/s 107 of TNGST Act within 30 days. Penalty of 200% of seized goods value imposed u/s 129(1)(a) for transporting goods in contravention of Act. Though petitioner imported goods, mitigating circumstances exist for not imposing full penalty as driver's statement unavailable during seizure. To balance parties' interests, statutory appeal allowed despite penalty imposition being final u/s 129(5). – 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 dismissed. HC upheld cancellation of petitioner's GST registration by revenue authorities u/s 132(1)(b) CGST/TNGST Act. Though principles of natural justice were violated by not granting personal hearing before cancellation, HC observed even if heard, consequence would have been same as petitioner's business premises were found inadequate during department visit. Impugned order passed by appellate authority was detailed, hence not interfered with by HC. – 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:- 18-12-2024 – News – Advisory for Entry of RR No./eT-RRs in EWB system Post EWB-FOIS Integration Dated:- 18-12-2024 – Subject: Guidance for Accurate Entry of RR No./eT-RRs following the Integration of E-Way Bill (EWB) with Freight Operation Information System (FOIS) system of Indian Railways. Dear Taxpayers, This advisory is being issued to inform you that the FOIS of Indian Railways has now been integrated with the E-Way Bill (EWB) system via Application Programming Interfaces (APIs). In light of this, it is important that taxpayers follow the correct process for entering RR no (Railway Receipt Number)/eT-RRs. into the EWB system. Adherence to the guidelines below will help avoid any potential discrep

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option, the system will prompt you to enter the corresponding RR No./eT-RRs 3. RR Number/eT-RRs for FOIS For goods transported via the Freight Operations Information System (FOIS) the RR number shall be entered in the following format in the EWB system. Format: F FromStationCode RR No For eg: If the goods are dispatched from the station SJWT and RR no. is 123456789 then the same needs to be entered as FSJWT123456789 4. EWB and RR No./eT-RRs Validation After entering the RR No./eT-RRs into the EWB system: a) The EWB system will validate the RR No./eT-RRs against the data received from the FOIS. b) If a mismatch is detected or the RR No./eT-RRs is not found in the database, an alert will be generated. Thus it is strongly advised that taxpayer

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Case-Laws – GST – Highlights – In the matter under review, the High Court dismissed the review petitions filed by the parties. The Court held that no grounds were established for seeking a review of the order directing the refund of interest amount. The Court observed that the insufficient time to check calculations during the initial proceedings cannot be a ground for review. Regarding a letter from January 2014, which the Review Petitioner admitted was not brought to the Court's notice earlier, the Court stated that while it can be relied upon in the enquiry to fix responsibility for non-renewal of FD, it does not warrant a review of the Court's order. Consequently, both review petitions were dismissed by the 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 High Court, while acknowledging the procedural deficiency of not issuing GST RFD-03 to the petitioner, held that the petitioner failed to avail the opportunity to raise such contentions in response to the show cause notice. However, considering the peculiar circumstances and the non-issuance of GST RFD-03, the Court set aside the impugned order dated 30 April 2024, subject to the petitioner paying costs of Rs. 2,00,000/- within 4 weeks, and restored the petitioner's refund application made in form GST RFD-01. – 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 show cause notice issued u/s 74 of the Central Goods and Services Tax Act, 2017. The court found no justification for alleging suppression or invoking the extended period of limitation. The show cause notice was based on findings from investigations after the audit report. The petitioner's statements accepting its status as a payment aggregator were considered relevant. The court held that at the show cause notice stage, judicial review is extremely narrow, and defences can be raised in response. Interference is warranted only in cases of violation of fundamental rights, natural justice, or lack of jurisdiction, which were not established here. The petitioner was directed to respond to the show cause notice and raise all defences. – 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 orders u/s 73 of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017 regarding non-reversal of Input Tax Credit (ITC) on account of Credit Notes issued by the Petitioner's suppliers. The Petitioner was directed to deposit 25% of the disputed tax within four weeks, subject to verification of any prior payments made. The impugned assessment order shall be treated as a show cause notice, and the Petitioner shall submit objections along with supporting documents within four weeks of receiving the order copy. The attachments, if any, would be lifted upon compliance with the deposit condition. – 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 Hon'ble High Court disposed of the writ petition by directing the petitioner to file an appeal before the appellate tribunal after depositing 20 percent of the demanded tax amount as per the provisions of Section 112(8) of the GST Act, 2017 within 30 days. This was in line with the judgment passed by the Patna High Court in M/s Cohesive Infrastructure Developers Pvt. Ltd., which held that subject to deposit of 20 percent of the remaining tax amount in dispute, the petitioner must be extended the statutory benefit of stay u/s 112(9) of the 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 – The High Court set aside the impugned order relating to assessment year 2017-18 concerning excess availment of Input Tax Credit vis-a-vis Input Tax Credit reported in the annual GSTR-9 return. The petitioner shall treat the impugned assessment order as a Show Cause Notice and submit objections within two weeks, along with relevant reconciliation statements and supporting documents. Subsequently, fresh orders will be passed by the respondent authority after considering the petitioner's submissions. – 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 was denied input tax credit as the alleged supplier did not provide any goods, violating principles of natural justice. The assessment order omitted outward and inward e-way bills from the accounts. The HC held that the existence of the supplier is a disputed question of fact that cannot be adjudicated under Article 226. The adequacy of evidence also cannot be examined under this provision. The HC rejected the challenge to the assessment order but permitted the petitioner to file an appeal within two weeks, subject to compliance with conditions like pre-deposit, and directed disposal of such appeal after reasonable opportunity of 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 High Court set aside the impugned orders of tax assessments for the period 2017-18 to 2022-23 against the petitioner and directed the Assessing Authority to redo the assessments after examining the applicability of Notification No.9 of 2017 dated 28.06.2017. The Court found merit in the petitioner's contention that if the petitioner is a unit of the Nuclear Fuel Complex/Department of Atomic Energy under the Central Government, the services rendered would be covered under the said notification, exempting them from Goods and Services Tax under Article 265 of the Constitution. – 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:- 17-12-2024 – News – Advisory on Updates to E-Way Bill and E-Invoice Systems Dated:- 17-12-2024 – GSTN is pleased to announce that NIC will be rolling out updated versions of the E-Way Bill and E-Invoice Systems effective from 1st January 2025 . These updates are aimed at enhancing the security of the portals, in line with best practices and government guidelines. 2. Multi-Factor Authentication (MFA): One of the key changes involves the implementation of Multi-Factor Authentication (MFA). Currently, MFA, which requires login using a username, password, and OTP (sent to the registered mobile number, Sandes app, or similar platforms), is mandatory for taxpayers with an Annual Aggregate Turnover (AATO) ex

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80 days from the date of generation. For instance, documents dated earlier than 5th July 2024 will not be eligible for E-Way Bill generation starting 1st January 2025 . 4. Restricting the extension of EWB for specific time/period from the eWB generation date: Furthermore, the extension of E-Way Bills will be limited to 360 days from their original date of generation. For example, an E-Way Bill generated on 1st January 2025 can only be extended up to 25th December 2025. Taxpayers are requested to familiarize themselves with these updates and incorporate the necessary adjustments into their compliance processes. For additional details, please visit the respective portals. Thanking You, Team GSTN – – News – Press release – PIB Tax Management

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Case-Laws – GST – Highlights – The High Court quashed the impugned order passed by the Assistant Commissioner, DGST for non-application of mind and violation of principles of natural justice. The order had discarded the petitioner's reply to the show-cause notice alleging non-declaration of output tax liability without assigning any reasons. The Court held that show-cause notices imposing further liabilities, including penalties, must be decided on merits and not in a cavalier manner. The challenge to the validity of certain notifications issued u/s 168A of the CGST Act was kept open to be raised afresh if required. – 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 allowed the appeals and set aside the impugned judgment of the Single Judge. The court held that to avail the Budgetary Support Scheme (BSS), the concerned unit must be located in the specified areas mentioned in the 2007 and 2017 notifications, producing specified goods cleared from the same units. The intent of the BSS pivoted around the geographical location of the unit, and the benefit was to accrue to those units for the residual period. Despite a change in name or acquisition of a new unit within Sikkim, there was no change in the geographical location of the units existing in Sikkim prior to the GST regime. The court observed that the appellants' anxiety regarding eligibility remained unaddressed, and no decision was taken by the DPIIT concerning their eligibility. – 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 proceedings initiated by the respondents u/s 65 of the CGST Act, 2017 for conducting audit. The Court held that the Commissioner can conduct the audit at prescribed frequency and manner without any embargo or time period restriction. The audit is akin to a preliminary inquiry, and the Department should not be prevented from conducting such inquiry into the books of accounts of a registered person, causing no prejudice. Consequently, there were no reasons to interfere with the audit proceedings. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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