Goods and Services Tax

GST Circular: Lower Rate Payments Accepted as Full; No Refunds for Higher Rates Paid.
Circulars
GST
This circular clarifies the scope of regularization on an “as is” or “as is, where is” basis mentioned in previous GST circulars issued based on GST Council recommendations. It states that when genuine doubts arise due to competing entries with different rates or diverse interpretations, leading to some suppliers paying lower GST rates (including nil rates) and others paying higher rates,

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GST rates revised for snacks, AC units, car seats; effective prospectively.
Circulars
GST
This circular clarifies GST rates and classification for certain goods based on recommendations of the GST Council's 54th meeting. Key points: Extruded/expanded savoury snacks under HS 1905 90 30 attract 12% GST prospectively from 10.10.2024, previously 18%. Roof mounted air conditioning units for railways classified under HS 8415 attract 28% GST. Car seats under HS 9401 attract 28% GST prospective

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GST Updates: University Affiliation, Helicopter Transport, and Theatrical Rights Clarified Post-54th Council Meeting.
Circulars
GST
This circular clarifies various GST-related issues based on recommendations of the 54th GST Council meeting. Key points are: GST at 18% applicable on affiliation services by universities to colleges; affiliation services to schools by educational boards/councils taxable except for government schools which are exempt; DGCA-approved flying training courses by

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Clarification on Regularizing IGST Refunds for Exporters: Payments and Reassessments Align with Rule 96(10) WBGST Rules 2017.
Circulars
GST – States
This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of the WBGST Rules, 2017, where exporters had initially imported inputs without paying integrated taxes and compensation cess by availing benefits under certain notifications, but subsequently paid the IGST, compensation cess, and interest o

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Indian Data Hosting Services for Overseas Clients Deemed Export Under IGST; Recipient's Location is Place of Supply.
Circulars
GST – States
The circular clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. It addresses three scenarios: whether the service qualifies as an intermediary service u/s 2(13) of the IGST Act, whether it relates to goods made available by the recipient u/s 13(3)(a), or whether

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Trade Circular Clarifies ITC Eligibility for Demo Vehicles Used by Motor Dealers Under WBGST Act Provisions.
Circulars
GST – States
This trade circular clarifies the availability of input tax credit (ITC) on demo vehicles used by authorized dealers for motor vehicles. The key points are: ITC is available on demo vehicles used for promoting further supply of similar vehicles, as it falls under the exclusion in Section 17(5)(a)(A) of the WBGST Act. However, ITC is not available if demo ve

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Clarification on Place of Supply for Indian Advertising Agencies: Full Service vs. Intermediary Roles Impact Export Benefits.
Circulars
GST – States
This trade circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points: Advertising agencies providing comprehensive services from design to media procurement are not intermediaries under IGST Act, but principal service providers

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Tax Authorities' Order Quashed for Violation of Natural Justice; Remanded for Fresh Adjudication After Hearing.
Case-Laws
GST
The High Court quashed the impugned summary order passed without issuing Form DRC-01 show cause notice to the petitioner, violating principles of natural justice. The matter was remanded to the respondent authorities for de novo adjudication after providing an opportunity of hearing to the petitioner. Fresh order to be passed within 12 weeks in accordance with la

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Technical Glitch in GST Portal Leads to Manual ITC Transfer Approval, Overcoming Filing Challenges.
Case-Laws
GST
The summary highlights the reversal of Input Tax Credit (ITC) due to the non-electronic filing of Form GST ITC-02 by the transferor company. The key points are: Section 18(3) of the CGST Act allows transfer of unutilized ITC in case of business transfer, subject to prescribed rules. The show cause notice alleged contravention of Section 18(3) and Rule 41(1) for availing ITC

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Tax Order Quashed for Denying Hearing Violating Natural Justice.
Case-Laws
GST
The impugned order violated principles of natural justice by failing to provide an opportunity of hearing to the Petitioner, despite a written request, contravening Section 75(4) of the MGST Act. The order was made without adhering to the statutory requirement of granting a hearing where an adverse decision is contemplated against the person chargeable with tax or penalty. Coordinate Benches in similar cases

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Court Annuls Tax Order: Petitioner Wins Reconsideration Over Alleged Filing Discrepancies, Must Pay 10% Demand to Proceed.
Case-Laws
GST
The court set aside the impugned order passed by the respondent u/s 73 of the Tamil Nadu General Sales Tax Act, 2017, imposing a liability of Rs. 10.72 lakhs towards tax, interest, and penalty on the petitioner due to a discrepancy between Forms GSTR 3B and GSTR 1. The petitioner claimed a violation of natural justice as they were unaware of the procee

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Tax dues paid, GST license renewal directed. Respondent to communicate remaining dues, if any.
Case-Laws
GST
Petitioner's GST license was cancelled for non-payment of tax dues. Considering petitioner's counsel's submission that returns were filed and tax along with interest was paid, the court directed the respondent authority to renew petitioner's GST license within 10 days. If any other amount is due, the authority shall communicate to petitioner, who shall pay within 7 days from comm

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GST registration cancelled, appeal delayed but material facts not suppressed. Court revives appeal.
Case-Laws
GST
The court addressed the issue of condonation of delay in filing an application and dismissal of an appeal on the ground of suppression of material facts regarding the cancellation of GST registration. The court referred to the Supreme Court's observation in Arunima Baruah case, which held that suppression must be of a material fact relevant for determining the lis or grantin

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Advisory for Taxpayers: New GST Provision for Metal Scrap Transactions
GST
Dated:- 14-10-2024

The government has issued Notification 25/2024-Central Tax, on October 9, 2024.under GST Sec

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New GST Forms Introduced for Waiver Applications: Streamlined Process for Interest and Penalty Relief u/s 128A.
Notifications
GST
The key points covered in the legal document are: 1. It introduces new forms (GST SPL-01 to GST SPL-08) for taxpayers to apply for waiver of interest and penalty u/s 128A of the GST Act. 2. Form GST SPL-01 is for making an application to seek waiver, providing details of the order, tax periods, and amount of tax, interest, and penalty demanded. 3. Form GST SP

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TDS now mandatory for metal scrap supplies between registered businesses from Oct 2024.
Notifications
GST
This notification amends the Central Goods and Services Tax Act, 2017 to mandate tax deduction at source (TDS) compliance for supply of metal scrap between registered persons. It inserts a new clause (d) specifying that any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from another registered person will be subjec

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Metal scrap suppliers need GST registration despite reverse charge from 10-10-2024.
Notifications
GST
The notification amends the earlier Notification No. 5/2017-Central Tax to exclude persons engaged in the supply of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from the exemption from GST registration if their entire supply is under reverse charge mechanism. The amendment comes into force from 10th October 2024. It mandates GST registration for metal scra

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CGST Authority's Registration Cancellation Reinstated; Orders Quashed for Violating Natural Justice Principles.
Case-Laws
GST
The Central Goods and Services Tax (CGST) Authority accepted the petitioner's voluntary application for cancellation of registration with effect from 8th May 2023. However, the subsequent orders revoking the registration cancellation were passed contrary to the principles of natural justice. Consequently, all proceedings initiated thereafter were quashed. The pet

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Detention Order Challenged for Export Goods; Court Requires Verification for Zero-Rated Tax Status via GSTR-1 Submission.
Case-Laws
GST
In the case of a detention order u/s 129(3) of the Central Goods and Services Tax Act, 2017, the petitioner challenged the order on the grounds that the goods were meant for export and thus qualified for Zero Rate Sale, rendering any levy of tax or penalty without jurisdiction. The High Court held that considering the peculiar facts of the case, where t

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GST registration cancellation order set aside for lack of reasoning, violating natural justice principles.
Case-Laws
GST
Order cancelling GST registration quashed due to lack of reasons and violation of principles of natural justice. While SCN proposed cancellation citing incorrect form, impugned order merely reproduced provisions of Sections 29 and 30 without specifying grounds for cancellation. Failure to provide reasoning renders order unsustainable, entitling petitioners to succeed.

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Allegations of tax suppression; statutory remedies advised over writ petition for factual disputes. Rectification plea rightly rejected after due process.
Case-Laws
GST
Petitioner failed to establish grounds for invoking Section 74 of CGST/SGST Acts regarding suppression allegations. Disputed questions of fact cannot be adjudicated through writ petition under Article 226. Petitioner directed to pursue statutory remedies for adjudication. Rectification application was properly rejected a

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Court Remands Case for Verification of GST Credit Claims and Invoice Correlation Due to Registration Issues.
Case-Laws
GST
The High Court examined the recovery of wrongly availed credit with penalty for wrongful availment during transition to GST regime. The petitioner's branches were not registered, and there was no correlation between invoices and claims made. The Court analyzed the registration status u/r 9 of Central Excise Rules, 2002, which allows exemption granted through a 2010

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Blocking Input Tax Credit Without Due Process Invalidated; Cross-Utilization Disallowed; Rs. 2.44 Cr Credit Unblocked.
Case-Laws
GST
Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST and SGST not permissible. Respondents directed to unblock credit of Rs. 2,44,05,567 in petitioners' electronic credit ledger. Utilization of remaining credit disallowed till show cause notice

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Tax liability imposed without show cause notice & documents, violating natural justice.
Case-Laws
GST
Non-service of show cause notice violated principles of natural justice. Respondent imposed tax liability without providing opportunity and documents to petitioner for defense. Court remanded matter to respondent for fresh consideration after petitioner pays 10% of disputed tax amount, setting aside earlier order to maintain consistency with previous cases allowing petitioner to present

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Blocking Supplier's Credit Ledger Without Show Cause Notice Breaches Natural Justice; Court Sets Aside Action.
Case-Laws
GST
Blocking of a supplier's credit ledger by mentioning 'Registration of supplier has been cancelled' without issuing a show cause notice violates principles of natural justice. Section 74 statutorily recognizes and mandates adherence to natural justice principles, while Rule 86A is silent on this aspect. Implementing Rule 86A without following natural justice may ca

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