Goods and Services Tax

High Court Rules in Favor of Late GST Refund Application Due to Technical Issues, Sets Precedent for IGST Cases.
Case-Laws
GST
The case pertains to the refund of tax paid by the petitioner under the 'Inverted Duty Structure' in the Goods and Services Tax (GST) regime. The petitioner filed an application for refund on 12.04.2023, beyond the limitation period, claiming a refund of Integrated Goods and Services Tax (IGST) paid. The High Court held that when the amounts in the credit ledger

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Petitioner's Appeal Hindered by Lack of Tribunal; 20% Deposit Required for Stay on Tax Recovery Under B.G.S.T. Act.
Case-Laws
GST
The petitioner is deprived of the statutory remedy of appeal against the impugned order due to the non-constitution of the Tribunal u/s 112(8) and (9) of the B.G.S.T. Act. Consequently, the petitioner cannot avail the benefit of stay on recovery of the balance tax amount upon deposit as contemplated u/s 112(8) and (9). The State authorities acknowledged the n

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Order on GST appeal remedy when Appellate Tribunal not constituted.
Case-Laws
GST
Non-constitution of Appellate Tribunal under CGST/OGST Act deprived petitioner of statutory remedy of appeal against order passed by Authority. Considering Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 and clarification by Central Board of Indirect Taxes and Customs vide Circular No.132/2/2020, High Court deemed it proper in the interest of justice to dispose of the writ petiti

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Goa govt clarifies data hosting services by Indian providers to overseas cloud firms is export of services; place of supply is recipient's location.
Circulars
GST – States
Goa government circular clarifying place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. Key points: Data hosting service providers not considered intermediaries under IGST Act; services not related to goods made available by recipient or immovabl

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Input Tax Credit Available for Demo Vehicles Used for Trials, Not for Staff Use; Conditions Apply for Capitalized Vehicles.
Circulars
GST – States
The circular clarifies the availability of input tax credit on demo vehicles used by authorized dealers for providing trial runs and demonstrating features to potential buyers. It covers two key issues: availability of ITC on demo vehicles u/s 17(5)(a) of the CGST Act, and availability of ITC where demo vehicles are capitalized by dealers. Th

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Indian Advertising Services to Foreign Clients Classified as Exports, Not Intermediary Services, Under GST Rules.
Circulars
GST – States
This circular clarifies the position regarding advertising services provided by Indian advertising companies/agencies to foreign clients. It addresses three key issues: whether the advertising company can be considered an intermediary, whether the foreign client's representative in India or target audience can be considered the recipient, and whether s

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Taxpayers' pre-deposit refunds for GST appeals allowed.
Circulars
GST
This corrigendum clarifies that the restriction on refund u/s 150 of the Finance (No. 2) Act, 2024 will not apply to refunds of pre-deposit amounts paid by taxpayers at the time of filing appeals under sub-sections (6) of Section 107 or (8) of Section 112 of the CGST Act, where such appeals are decided in favor of the taxpayer. It inserts this clarification at the end of paragraph 4 of Circular No. 237/31/2024-GST dat

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Goods seized for lacking e-way bill despite tax compliance; High Court quashes order citing no tax evasion intent.
Case-Laws
GST
Non-generation of e-way bill during transportation of goods led to seizure order u/s 129(3) of GST Act, imposing penalty and interest. However, it was admitted that goods were transported with relevant documents except e-way bill, which was produced before seizure order. No finding recorded regarding intention to evade tax. Relying on precedent, High Court hel

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GST Valid on Mineral Royalties: Supreme Court Upholds Notifications by Central and Himachal Pradesh Governments.
Case-Laws
GST
Royalty paid by a mineral concession holder for mining concessions granted by the State is subject to GST levy. The constitutional validity of notifications issued by the Central and Himachal Pradesh governments imposing GST on such royalty payments is upheld. The Supreme Court's nine-judge bench ruling in Mineral Area Development Authority & Anr. v. Steel Autho

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Court Upholds Second FIR on Misuse of Company Funds; Distinct from Initial Forgery Allegations in Cement Case.
Case-Laws
GST
High Court dismissed petition seeking quashing of FIR related to clandestine manufacture and supply of cement clinker and cement without invoices and accounting. Court held second FIR maintainable as offense under GST Act would not cover misappropriation of company funds for personal use resulting in wrongful loss. Allegations in second FIR pertain to misappropria

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Project Delay Penalty Quashed: Court Sides with Firm for Timely Production Commencement.
Case-Laws
GST
The petitioner was directed to pay a 5% penalty of the prevailing plot cost for the belated implementation of the project as per Clause 2.1.2.(a) of O.O.No.30 of 2020. However, the petitioner complied with the clause by utilizing more than 65% of the plot and had commenced production before dispatching goods. Despite paying the penalty amount, the petitioner was again directed to pay a

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Court Upholds GST on Construction Services; Annuity Payments Taxable, Exemption Limited to Access Services Only.
Case-Laws
GST
The High Court dismissed the challenge to the Circular No.150/6/2021 GST dated 17.06.2021, which clarified that annuity payments for construction services are taxable under GST, contrary to the exemption under Sl. No.23-A of Notification No. 12/2017-CT(Rate). The Court held that the Circular did not contravene the Notification or the 22nd GST Council recommendat

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Quashing GST Order for Input Tax Credit in Light of Sadhana Enviro Case.
Case-Laws
GST
Petition seeking quashing of Order-in-Original passed u/s 73 of CGST Act, 2017, and Demand Order in GST 07 by Respondent 4. No excess claim of Input Tax Credit for 2019-20 as already denied for 2017-18. Court held issue covered by judgment in M/s. Sadhana Enviro Engineering Services case, where it was ruled that in view of amendment inserting Section 16(5) to CGST/KGST Act, petition should be disposed

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Unfair adjudication quashed; hearing opportunity denied. HC directs fresh probe upholding natural justice.
Case-Laws
GST
Order quashed due to violation of principles of natural justice. Petitioner not afforded opportunity of hearing after supply of documents. Directions issued by HC not followed. Finding on fraud allegation ipse dixit. Matter remanded to Joint Commissioner for fresh adjudication after providing opportunity of hearing, following HC directions, and dealing with fraud alle

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Tax Penalty Order Remanded: Court Rejects Denial Based on Clarification, Seeks Fresh Order.
Case-Laws
GST
The High Court held that the denial by the respondents to apply Section 129(1)(a) of the CGST/IGST Act based on the clarification dated 31.12.2018 and previous judgments was unjustified. The finding of the authority in Para-4 of its order was essentially factual and solely based on communication from CGST, Delhi regarding initiation of cancellation proceedings, without any evidence

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Court Finds Breach in Tax Order Service, Sets Aside Order; Petitioner Must Deposit 25% Disputed Tax Within 2 Weeks.
Case-Laws
GST
The High Court addressed the violation of principles of natural justice. The impugned order of assessment was not properly served on the petitioner, as it was merely uploaded on the common portal instead of being tendered or sent via RPAD. Consequently, the impugned order was set aside. The petitioner was directed to deposit 25% of the disputed tax within two

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Court Overturns Assessment Order for Violating Natural Justice; Allows Reconsideration of ITC Claims and Tax Liability.
Case-Laws
GST
The court found merit in the petitioner's submission that the impugned order of assessment violated principles of natural justice by traversing beyond the show cause notice, denying the petitioner an opportunity to present their case. Regarding the discrepancy between GSTR-2A and GSTR-3B, the court held that the order proceeded without considering the pet

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Reversal of ITC by GST authorities quashed for lack of personal hearing; remanded for fresh decision after hearing.
Case-Laws
GST
The High Court set aside the impugned order passed by the respondent in Form GST DRC-07, reversing the ITC availed by the petitioner. The respondent had passed the order without affording an opportunity of personal hearing to the petitioner, violating Section 75(4) of the CGST Act and principles of natural justice. The matter was remanded to the respondent fo

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Failure to Serve Notices Voids Tax Order; Case Remanded for Reconsideration Due to Violations of Natural Justice.
Case-Laws
GST
The petitioner was not served with notices/communications, resulting in their failure to file a reply within the stipulated time. As per the proviso to Rule 86B of the GST Rules, the petitioner is not liable to pay any tax amount. However, the petitioner, being unaware of the show cause notice, failed to appear for personal hearing before the respondent authori

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Ride-hailing app liable for GST on transportation services facilitated through its platform.
Case-Laws
GST
The e-commerce operator's nature of supply is conceptualized u/s 9(5) of the CGST Act, 2017, read with Notification No. 17/2017. The operator is liable to collect and pay GST on the supply of services provided by drivers/service providers to customers identified on the platform, under the proposed business model. The applicant falls within the definition of an electronic commerce o

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Pre-packed Ready-to-Eat Items Classified Under HSN 2004 10 10 Due to Cooking and Retort Preservation Processes.
Case-Laws
GST
The process involved in preparing pre-packed ready-to-eat items is not merely cooking but also includes preservation through retort technology. The appropriate classification for these items is under HSN 2004 10 10, as both preparation and preservation are applicable. According to the rules for interpretation of the Tariff, when goods cannot be classified by refe

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Contractor retains control, services classified as leasing/rental without operator; 18% GST applicable.
Case-Laws
GST
The applicant's services do not constitute a transfer of the right to use goods, as substantial control remains with the contractor and is not handed over to the user. The contracts in question are leasing or rental services without an operator, falling under Sl. No. 17 (viii) of Notification No. 11/2017 Central Tax (Rate) dated 28-06-2017. Such services attract GST at t

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Halwa branded by applicant classified as “sweetmeat” under GST, not “namkeen” despite same HSN code.
Case-Laws
GST
Packed halwa purchased from an outsourced manufacturer and marketed under the applicant's brand name is classifiable under HSN Code 2106 90 as “sweetmeats” and taxable at 2.5% CGST under Entry No. 101 of Schedule I of Notification No. 1/2017 Central Tax (Rate), dated 28-06-2017. Despite the same HSN 2106 90 appearing in Schedule II covering “Namkeens,” when a specific item

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ADVISORY FOR WAIVER SCHEME UNDER SECTION 128A
GST
Dated:- 8-11-2024

For reducing the tax disputes and to provide a big relief to the taxpayers, GST Council in its 53rd meeting held on 22nd June, 2024 had recommended for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18, 2018-19 and 2019-20. To avail this waiver, the condition is that the full tax demanded is paid on or before 31.03.2025.
In view of the above, Rule 164 of CGST rules, 2017 was notified through Notification No. 20/2024 dated. 8th October 2024, effective from 1st November 2024. This rule provid

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Advisory related to ‘Other Territory’ applications
GST
Dated:- 8-11-2024

Dear Taxpayers,
As per Notification No. 2/2017-Central Tax dated 19th June, 2017 read with Trade Notice No. 01/2017-Central Tax dated 21st June, 2017 issued by Office of the Chief Commissioner of Central Excise, Mumbai Zone I and GST Trade Notice No. 002/2017 dated 20th June, 2017 issued by Central Excise Zone, Chennai, the applicant applying for new registration application and selecting the category of 'Other Territory' in the tab of State/UT in Part-A of GST registration form, shall only be administered under 'Mumbai South' or 'Chennai North' Commissionerate's and shall select centre jurisdiction as follows:
1. For 'Other Territory' pertaining to

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