Goods and Services Tax

Transfer of Development Rights Constitutes Consideration for Developer with GST Liability at Property Transfer
Case-Laws
GST
The AAAR dismissed the appellant's appeal, upholding the original ruling. The Authority determined it lacked jurisdiction to decide on taxability under Finance Act, 1994 (service tax), as the appellant sought ruling on pre-GST TDR transactions. The AAAR also declined to consider new grounds introduced in appeal that weren't raised before the original authority, ci

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GST Fraud Mastermind Denied Bail Under Sections 132(1) of CGST Act for Rs. 59 Crore Tax Evasion Scheme
Case-Laws
GST
The DSC dismissed the first regular bail application of the accused under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of CGST Act, 2017. The accused was identified as the mastermind in defrauding the government exchequer by creating and operating multiple firms, issuing fake tax invoices for Copper Scrap without actual supply of goods, and fraudulently availing Input Tax

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Time-Barred GST Demand Quashed: Three-Year Limitation Under Section 73(10) Expired Before Order Issuance
Case-Laws
GST
HC quashed an ex-parte demand order and show cause notice issued on 14.12.2023 for the financial year 2017-18 as time-barred under Section 73(10). Following the precedent in M/s Anita Traders, the court determined that due to notification extensions, the three-year limitation period for orders under Section 73(9) expired on 05.02.2023. The court rejected arguments that

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Taxpayer Wins Remand After Assessment Order Made Without Adequate Hearing Opportunity
Case-Laws
GST
The HC set aside both the assessment order and rectification order, remanding the matter to the assessing authority for fresh consideration. The Court found that the respondent violated principles of natural justice by issuing the impugned assessment order without providing sufficient opportunities to the petitioner. Despite the petitioner's requests for adjournment to file detailed repli

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Anticipatory Bail Granted in GST Case Where Timely Returns Filed and No Loss to State Exchequer
Case-Laws
GST
In an anticipatory bail application involving allegations of financial misconduct, the HC granted relief to the petitioner. The Court determined that no loss was caused to the State Exchequer as the petitioner had filed GST returns punctually, with purchases by him and his firm accurately reflected in the vendor's GST R-1 Return, GST 2-A, and 3-B returns. All taxes were paid pro

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Virtual Hearings Mandatory for All RGST/CGST Act 2017 Proceedings; In-Person Appearances Require Additional Commissioner's Approval Under Section 168
Circulars
GST – States
The Rajasthan Commercial Tax Department has mandated virtual hearings for all proceedings under RGST/CGST Act 2017 and other taxation laws, effective immediately. Under Section 168 of RGST Act, in-person appearances require prior approval from the Additional Commissioner upon written request. Taxpayers will receive h

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Tax Assessment Order Invalidated for Missing Officer Signature and Document Identification Number Under CGST Act
Case-Laws
GST
The HC set aside the impugned assessment order due to two fatal defects: absence of the assessing officer's signature and omission of the Document Identification Number (DIN). Relying on A.V. Bhanoji Row (2023), the court affirmed that an officer's signature on assessment orders is mandatory and cannot be rectified under Sections 160 & 169 of CGST Act, 2017. Add

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GST Registration Cancellation Quashed Due to Non-Speaking Order and Failure to Follow FORM GST REG-19 Requirements
Case-Laws
GST
The HC quashed the GST registration cancellation order, finding it procedurally deficient as a non-speaking order that failed to conform with FORM GST REG-19 requirements. Despite the petitioner's delayed approach (filing after approximately one year), the Court determined that the order's statutory non-compliance outweighed concerns about delay. The Court rem

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Petitioner Wins Refund Claim for Unutilized Input Tax Credit Under Section 54(3) of CGST Act Due to Inverted Tax Structure
Case-Laws
GST
The HC allowed the petition, quashing the impugned order and directing respondents to process the petitioner's refund claims for unutilized Input Tax Credit under Section 54(3) of CGST Act due to inverted tax structure. The court relied on its previous ruling in the petitioner's identical case, where it had held that refund claims deserved to be allowe

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GST Registration Cancellation Quashed: Retrospective Effect Invalid and Revocation Rejection Without Hearing Violates Section 30
Case-Laws
GST
The HC quashed the cancellation of GST registration and rejection of revocation application, finding that respondents failed to provide valid justification for the cancellation. The court noted that the original cancellation order improperly imposed retrospective effect from August 3, 2017, despite no such indication in the original Show Cause No

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GST Appeal Dismissed: Time-Barred Filing Under Section 100(2) for Rent from Government SWCBH
Case-Laws
GST
The AAAR rejected the appellant's appeal against a ruling concerning GST on rent received from Govt SWCBH as time-barred. Though the appellant claimed they never received communication of the original order, evidence showed the ruling was emailed on 12.02.2024 to the appellant's email address (provided in their Form GST ARA-01). Per Section 100(2) of CGST Act, appeals must be filed

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Setting Aside Partial AAR Ruling on GST for Land Development: AAAR Remands Case for Complete Adjudication Under Section 101
Case-Laws
GST
The AAAR determined that the appeal was not maintainable as the AAR had failed to address three questions in its original ruling. Since the questions regarding GST on developed plot sales, development services to landowners, transfer of development rights, valuation of services, and timing of tax payments were interlinked, the AAAR could not effective

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ITC Must Be Reversed on Inputs Used for Goods Later Destroyed in Fire Under Section 17(5) of SGST Act
Case-Laws
GST
The AAAR held that a registered person must reverse Input Tax Credit (ITC) availed on inputs used to manufacture steel nails that were subsequently destroyed in a fire accident. While Section 16 of SGST Act, 2017 generally allows ITC on inputs used in furtherance of business, Section 17(5) specifically prohibits ITC on goods that are “lost, stolen, destroyed or written off

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Electricity and Water Charges by Lessor to Lessee Form Part of Renting Services Under Section 8(a), Attracting GST
Case-Laws
GST
The AAAR determined that electricity and water charges collected by a lessor from a lessee constitute part of the principal supply of “renting of immovable property” under Section 8(a) of the CGST Act, not a separate supply. The lessor cannot be considered a pure agent as there is no sub-meter in the lessee's name and no authorization for payment. The exemptio

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GST Registration Cancellation Overturned as Authorities Failed to Establish Rule 21 Violations or Improper Registration
Case-Laws
GST
The HC set aside the cancellation of petitioner's GST registration, finding that authorities failed to follow proper procedural requirements. The appellate authority had rejected the appeal solely because the HSN/SAC code disclosure in registration applications suggested two registrations covered the same business. However, the court determined that autho

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Input Tax Credit Cannot Be Denied When Seller's GST Registration Was Valid During Transaction Despite Later Cancellation
Case-Laws
GST
The HC held that the petitioner was entitled to Input Tax Credit (ITC) despite the seller's GST registration being canceled retrospectively. Since the transaction occurred on 06.12.2018 when the seller was validly registered, and the cancellation took effect from 29.01.2020, no adverse inference could be drawn against the petitioner. The Court emphasized

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GST Ex-Parte Order Set Aside: Taxpayers Must Receive Proper Notice Under Section 73 Before Assessment
Case-Laws
GST
The HC set aside an ex-parte order issued without proper service of show cause notice, finding it violated principles of natural justice. Following precedents established in Ola Fleet Technologies and Akriti Food Industry cases, the Court determined that taxpayers facing liability must receive opportunity to present their defense. Rather than prolonging litigation, the HC

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Refund of Unutilized ITC Cannot Be Denied Merely Because Payments Were Remitted to Different Branch's Bank Account
Case-Laws
GST
The HC quashed an order denying refund of unutilized Input Tax Credit for FY 2022-23 and Q1 of FY 2023-24. The respondent had rejected the refund claim because payments for exported services by petitioner's Delhi branch office were remitted to a bank account in Bangalore. Relying on Cable and Wireless Global India Private Limited, the Court held that mapping a

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GST Summons Under Section 70 Doesn't Create Tax Liability or Initiate Proceedings Against Taxpayer
Case-Laws
GST
The HC addressed a challenge to a summons issued under s.70 of the GST Act seeking information from the petitioner. The court clarified that s.74 of the CGST Act applies to tax evasion cases involving willful misstatement or fraud, permitting penalties up to 100% of unpaid tax, with reduced penalties available at various stages of admission and payment. The court determined t

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Writ Application Dismissed Due to Defective Affidavit Where Deponent Failed to Establish Proper Authorization
Case-Laws
GST
The HC dismissed a writ application challenging seizure of goods and vehicle due to fatal procedural defects in the supporting affidavit. The deponent, Gopal Yadav, failed to establish proper authorization to represent all petitioners, claiming only to be the manager-cum-authorized representative of petitioner no.3. The affidavit lacked mandatory declarations that

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Blocking of Electronic Credit Ledger under Rule 86A quashed due to lack of reasoning and natural justice violation
Case-Laws
GST
The HC quashed the order blocking petitioner's Electronic Credit Ledger under Rule 86A of CGST/SGST Rules. The court found that the impugned order lacked independent reasoning, instead relying on enforcement authority reports which constituted “borrowed satisfaction.” Additionally, no pre-decisional hearing was granted to the petitioner before blocking the ECL

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Refund of Unutilized Input Tax Credit on SEZ Supplies Cannot Be Denied for Procedural Non-Compliance
Case-Laws
GST
The HC quashed orders rejecting the petitioner's claim for refund of unutilized Input Tax Credit on supplies made to SEZ units without payment of tax. The Court held that once the respondents admitted the petitioner's entitlement to refund, the Court had jurisdiction to direct its grant despite procedural non-compliance with Circular No. 125/44/2019. The Court emphasized th

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Input Tax Credit Cannot Be Denied for GSTR-3B Returns Filed Late When Section 16(5) Amendment Provides New Cut-off Date
Case-Laws
GST
The HC quashed an order disallowing Input Tax Credit (ITC) claimed by the petitioner in GSTR-3B returns filed beyond the due date under WBSGST/CGST Act, 2017. The Court held that the subsequent amendment to Section 16(5) had regularized the petitioner's returns for tax period April 2018 to March 2019 by providing a new cut-off date, and therefore the peti

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Government Services to Telangana State Not Exempt Under Entry 6 of Notification 12/2017-CT Rate
Case-Laws
GST
The AAAR upheld the AAR's ruling that services provided by the appellant to the Telangana State Government are not exempt under GST. Entry 6 of Notification 12/2017 exempts services provided by the Government, not to the Government. Additionally, services provided by the appellant on behalf of the Government to business entities fall under the exception to this entry and are the

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ITC Denied on Employee Transportation Services Under Section 17(5) as No Statutory Obligation Exists
Case-Laws
GST
The AAAR dismissed the appeal regarding eligibility to claim ITC on GST paid for employee transportation services. The authority ruled that under Section 17(5) of CGST Act, ITC is available only when provision of such services is statutorily obligatory for employers. Since the appellant provided transportation merely as a convenience measure for employees at a remote factor

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