Goods and Services Tax

Mismatch in GST filing: Court quashes tax order, grants hearing opportunity to establish case.
Case-Laws
GST
The High Court set aside the impugned orders and consequential GST DRC-13 notice for attachment of Bank Account issued by the tax authority for the assessment year 2017-2018. The issue pertained to a mismatch of tax liability between GSTR-3B and GSTR-2A filed by the petitioner. The Court held that the principles of natural justice were violated as the show cause notice was upload

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Advance ruling rejected due to pending investigation on same issue.
Case-Laws
GST
The application for advance ruling is liable for rejection under the first proviso to Section 98(2) of the CGST/TNGST Acts, 2017, as proceedings on the same issue were already initiated and pending against the applicant. The initiation of investigation through summons, recording of statements, furnishing of details by the applicant, and issuance of an Incident Report by DGGI, all preceded the filing of the

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Inquiry/investigation into tax evasion renders advance ruling application inadmissible.
Case-Laws
GST
Proceedings under the CGST Act, 2017 encompass not just judicial proceedings but also assessment, audit, detention/seizure/release of goods and conveyances, even if they do not culminate in a show cause notice. Investigation or inquiry initiated to safeguard government revenue qualifies as proceedings. The applicant's contention that inquiry/investigation does not constitute proceedings

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Body Building on Customer-Owned Chassis: GST Clarifies as Service with 9% Rate; Job Work Only for Registered Owners.
Case-Laws
GST
Classification of body building activity on chassis owned by the principal, either a registered or unregistered customer, under the Goods and Services Tax (GST) regime. It clarifies that the body building activity undertaken by the applicant on customer-owned chassis constitutes a supply of service, classified under Service Accounting Code (SAC) 998881 'Moto

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Reassessment ordered, objections allowed; ITC denial garnishee halted, others continued.
Case-Laws
GST
Assessment order set aside. Assessing authority to re-do assessment considering amendment. Petitioner allowed to file objections within three weeks. Personal hearing to be granted. Garnishee proceedings related to demand for denial of Input Tax Credit u/s 16(4) for 2017-2018 to be withdrawn. Respondent permitted to continue garnishee proceedings for other demands. Petition disposed.

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Summons jurisdiction challenged – parallel proceedings on Central GST Act.
Case-Laws
GST
Challenge to summons jurisdiction – parallel proceedings – Central Authorities' jurisdiction u/s 6(2) Central Goods and Service Tax Act, 2017. Petitioner has no objection to investigation regarding M/s IESA Sales Pvt. Ltd. Held: Respondent No.3 can investigate pursuant to summons dated 21.06.2024 and 05.07.2024 regarding M/s IESA Sales Pvt. Ltd. However, based on communication dated 09.08.2024, Resp

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Corrupt GST officer denies anticipatory bail in bribery case after fleeing attempt.
Case-Laws
GST
The petitioner, a GST Inspector, sought anticipatory bail in a bribery case. The complainant alleged a demand for bribe by the petitioner during a telephonic conversation, corroborated by the visitor's register entry showing the complainant's visit to meet the petitioner. Despite the petitioner's attempt to flee through a secret passage, the prima facie evidence points towards his involveme

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Circular challenged over GST refund denial; High Court sets aside orders, remands for fresh hearing.
Case-Laws
GST
Petition challenging Circular No.151/07/2021-GST as ultra vires provisions of entry at Serial No.66(a) read with Paragraph 2(y) of N/N. 12/2017-Central Tax (Rate) and corresponding Delhi GST Act notifications. Petitioner alleged refund rejection order dated 29.06.2022 was passed without considering submissions and denying personal hearing, violating natural justice. High Co

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Kerala, Nagaland and Telangana
GST
Dated:- 7-10-2024

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2. The a

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nt 3(a), she/he can proceed with the application as per the existing process.
5. However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6. The feature of booking an appointment to visit a designated GSK is now available for the applicants of Kerala, Nagaland and Telangana.
7. After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
8. At the time of the visit of GSK, the applicant is required to carry the following details/documents
(a) a copy (hard/so

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High Court Confirms GST Officers' Authority to Issue Show Cause Notices; Clarifies Jurisdiction Under GST Act.
Case-Laws
GST
Jurisdiction and powers of officers issuing show cause notices (SCNs) under the Goods and Services Tax (GST) Act, 2017. It clarifies that the Additional Director General, Goods and Services Tax Intelligence, Additional Director General, Goods and Services Tax, Additional Director General, Audit, and their subordinate officers have been notified by the Board to exe

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Robust measures to prevent fraudulent refund sanctions by relieved officers through timely de-mapping from GSTN portal.
Circulars
GST
This instruction pertains to the systemic improvement regarding mapping and de-mapping of officers on the GSTN portal. It addresses an incident where a relieved officer fraudulently sanctioned a refund due to failure in de-mapping from the portal. To prevent such occurrences, it recommends immediate de-mapping upon relieving, monitoring by supervisory off

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Advisory on Proper Entry of RR No./Parcel Way Bill (PWB) Numbers in EWB system Post EWB-PMS Integration
GST
Dated:- 5-10-2024

Subject: Guidance for Accurate Entry of RR No./Parcel Way Bill (PWB) Numbers following the Integration of E-Way Bill (EWB) with Parcel Management System (PMS)
Dear Taxpayers,
It is to inform that the Parcel Management System (PMS) of Indian Railways has now been integrated with the E-Way Bill (EWB) system via Application Programming Interfaces (APIs). This integration facilitates the seamless transfer of RR No./Parcel Way Bill (PWB) data from Railways to e-way bill portal , ensuring better traceability and compliance.
In light of this, it is important that taxpayers follow the correct process for ent

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tem (PMS), must follow these steps:
i. Update Part-B of the E-Way Bill using the "Multi-Transport Mode" option on the EWB portal.
ii. In the updated section, select Rail as the mode of transport.
After selecting this option, the system will prompt you to enter the corresponding RR No./Parcel Way Bill (PWB) number.
3. Format for Entering the RR No./PWB Number
The Parcel Way Bill number must be entered in the following format:
a) PXXXRRNo, where:
i. P stands for the Parcel Management System (PMS).
ii. XXX refers to the From Station Code of the originating railway station.
iii. RRNo is the actual Railway Receipt number issued for the goods.
Example:
If the Railway Receipt number in the PMS system is 2020-307306, it sh

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(PMS) of Railways.
b) If a mismatch is detected or the RR No./PWB number is not found in the database, an alert will be generated. Therefore, it is advised that taxpayers ensure the correct entry of RR No./PWB numbers to avoid future discrepancies.
6. Importance of Accurate Entry
It is crucial for taxpayers to ensure that the Parcel Way Bill number is entered correctly in the EWB system to allow smooth tracking and verification of goods being transported via Indian Railways. Accurate entry will also facilitate the validation process and avoid unnecessary delays or complications.
7. Assistance and Clarifications
For further assistance or if there are any discrepancies in entering RR No./PWB numbers, taxpayers are encouraged to raise a

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Supreme Court Clarifies GST Act: Works Contract Excluded from ITC; Defines “Plant or Machinery” for Business Use.
Case-Laws
GST
The Supreme Court interpreted clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017. Regarding clause (c), the Court held that there is no scope to give any meaning other than its plain and natural meaning, excluding works contract services from input tax credit (ITC). Regarding clause (d), the Court held that the

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GST Appeal Deadline Upheld: Courts Reject Extension Beyond Prescribed Period for Post-March Orders.
Case-Laws
GST
Time limitation for appeal against order u/ss 73 or 74 of GST Act cannot be condoned beyond prescribed period. Notification dated 02.11.2023 allowing filing of appeal by 31.01.2024 without limitation applies only to orders passed on or before 31.03.2023. For impugned order dated 20.07.2023, notification is inapplicable. Delay in filing appeal cannot be condoned as per M/s Ya

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Court Invalidates IGST Demand on Reinsurance Services; Amendments Regularized Tax Period, Petition Granted.
Case-Laws
GST
The High Court quashed the order dated 20 December 2023, issued u/s 168A of the Central Goods and Services Tax Act, 2017, demanding Integrated Goods and Services Tax (IGST) on reinsurance services provided by a multinational insurance company registered as a foreign reinsurance branch with IRDAI and the Ministry of Corporate Affairs, for the period 01 July 2017 to 25

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Court Sets Aside Orders for Lack of Proper Notice and Hearing Under State GST Act, Violating Sections 73, 75, and Rule 142.
Case-Laws
GST
The High Court examined whether proper show cause notices were issued before passing impugned orders u/s 73(9) of the State GST Act. It held that the summary of show cause notice along with tax determination cannot substitute a valid show cause notice initiating proceedings u/s 73. The Court opined that the impugned orders were contrary to Section 73 and Rule 142(1)(a) as they were passed without issuing a proper show cause notice. Regarding the determination of tax and order attached to the summary, the Court held that as per Sections 73(3) and 73(9), only the proper officer can issue show cause

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Court Quashes GST Registration Cancellation for Lack of Justification; Emphasizes Need for Reasoned Orders.
Case-Laws
GST
The court dealt with the power to cancel GST registration retrospectively u/s 29 of the Central Goods and Services Tax Act, 2017. It held that while the provision enables retrospective cancellation, the mere existence of such power does not justify its invocation. The order u/s 29(2) must reflect reasons for cancelling registration retrospectively, considering the de

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High Court quashes tax order due to improper dismissal of appeal on limitation and pre-deposit grounds.
Case-Laws
GST
The High Court quashed the order of adjudication passed u/s 74 and demand notice u/s 107 of the KGST/CGST Act. It held that the appellate authority erred in dismissing the appeal on the grounds of limitation and non-payment of 10% pre-deposit. The appeal was filed within the prescribed time limit, and the affidavit for condonation of delay was not considered. The matter

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Non-speaking assessment order passed without considering objections; violated principles of natural justice. Revenue to re-do assessment.
Case-Laws
GST
Challenge to non-speaking order of assessment and consequential rectification order. Order passed without considering objections, violating principles of natural justice. Revenue agreed to re-do assessment. High Court set aside assessment order, treating it as show cause notice. Petitioner to appear before Revenue, submit objections and

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Taxpayer's double taxation woes end as court rules against reverse charge GST liability.
Case-Laws
GST
The court held that the petitioner cannot be made liable to pay GST under the reverse charge mechanism if it would lead to double taxation, provided the entire tax amount has been discharged. The court relied on its previous decision, wherein it was held that if the tax has reached the government's coffers, the assessee cannot be made to pay double tax merely due to non-adherence to th

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Cryptic notice, arbitrary suspension of registration flouts natural justice.
Case-Laws
GST
Cryptic show-cause notice and suspension of registration without assigning adequate reasons violates principles of natural justice. Authorities should not pass orders mechanically without providing basic reasons, depriving the aggrieved party of an effective opportunity to respond. The impugned show-cause notice dated 27.01.2024 and the order suspending registration are set aside due to lack of pr

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Expired provisional attachment orders can't restrict bank accounts. High Court allows account operation.
Case-Laws
GST
Provisional attachment order u/s 83 of the CGST Act ceases to be operative after one year. Petitioner's bank account cannot be restricted by respondent banks based on expired provisional attachment orders. High Court directs respondent banks to allow petitioner to operate bank accounts, disposing off the petition.
TMI Updates – Highlights, quick notes, marquee, anno

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Transforming Second-Hand Jewelry into New Pieces Qualifies as Manufacturing, Affects GST Margin Rule Application.
Case-Laws
GST
The applicant purchases second-hand gold or diamond jewelry from unregistered individuals, melts and transforms them into new pieces, altering their nature and characteristics. This process constitutes manufacturing u/s 2(72) of the GST Act, where the purchased gold is used as a raw material or input to make a new commodity. When the applicant melts the jewelry into gold lumps, the nature of the goods changes, and the characteristics and classification are altered. In such cases, the applicant cannot avail the benefit of Rule 32(5) of the CGST Rules, 2017, which allows paying GST on the margin value (diffe

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Rejecting appeal without reasons violates natural justice, undermines objectivity.
Case-Laws
GST
The court quashed the impugned orders rejecting the appeal as the appellate authority failed to assign any reasons, violating principles of natural justice. It is settled law that reasons are the heartbeat of every conclusion, and an order without valid reasons cannot be sustained. Giving reasons substitutes subjectivity with objectivity. The Supreme Court has held that administrative author

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Milk manufacturer's tax assessment revoked over flawed show cause notice, Covid-19 impact oversight.
Case-Laws
GST
Tax assessment order set aside due to defects in show cause notice, failure to consider Covid-19 impact on business operations. Taxpayer engaged in milk manufacturing faced stagnation of goods, requiring excess electricity consumption for storage despite low sales. Respondent failed to consider vital aspects explained by taxpayer regarding disparity between turnover and ele

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