Goods and Services Tax

Exporters Can Claim IGST Refund on Price Revisions: Submit FORM GST RFD-01 with Required Documents Within 2 Years.
Circulars
GST – States
This circular prescribes the mechanism for refund of additional Integrated Tax (IGST) paid by exporters on account of upward revision in price of exported goods subsequent to exports. Exporters can file refund application in FORM GST RFD-01 electronically on the common portal, which will be processed by the jurisdictional GST officer. Required documen

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Court Allows Response to GST Violations; Petitioner to Address Show Cause Notices for 2018-19 Tax Period.
Case-Laws
GST
This legal matter involves alleged violations of specific provisions under the applicable Goods and Services Tax (GST) statutes. The case pertains to the exercise of discretionary jurisdiction by the authority in canceling the petitioner's GST registration and issuing show cause notices regarding tax proposals for the 2018-19 tax period. The High Court held that upon e

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Invoice tax credit denial overturned for lack of reasoning, new order after hearing firm.
Case-Laws
GST
Impugned communication rejecting application for input tax credit blocking lacked reasoning, amounting to non-application of mind and violation of natural justice principles. Authority contended blocking was within jurisdiction, reasons provided later, but petitioner entitled to be heard. Impugned communication quashed, application restored for fresh order after hearing petitioner. Au

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Refund Denied: Cess Credits Non-Transferable Under GST; Court Upholds CENVAT Rules and Section 54 Restrictions.
Case-Laws
GST
The petitioner's claim for refund of unutilized credit on account of payment of Service Tax, Education Cess (EC), Secondary and Higher Education Cess (SHEC), and Krishi Kalyan Cess (KKC) under the GST regime was rejected. The court held that EC, SHEC, and KKC can only be utilized for payment of such cess and not for any other purposes under the CENVAT Credit Rule

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Tax assessment order set aside for lack of fair hearing & notice.
Case-Laws
GST
Impugned assessment order set aside due to violation of principles of natural justice. Petitioner not provided opportunity for personal hearing regarding mismatch of tax liability filed for financial year 2017-2018. Show cause notice uploaded on GST Portal without furnishing original to petitioner. Order passed without allowing petitioner to establish case, violating natural justice. Matter remanded to respo

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Taxpayer's filing error led to notice, but lack of show cause notice & order on portal made the order unsustainable. Court set it aside.
Case-Laws
GST
Inadvertent error committed by taxpayer in filing GSTR-3B return led to issuance of Form GST DRC-01A. However, upon examination, it was observed that detailed show cause notice and order were not available or uploaded on the portal. Consequently, the impugned order could not be sustained. The High Court set aside the order, allowing the r

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GST registration woes after family feud: Court orders swift processing sans NOC.
Case-Laws
GST
Writ petition disposed of directing respondents to process petitioner's application for GST registration within two weeks without insisting on No Objection Certificate. Petitioner had dispute with brother-in-law and mother-in-law after husband's death, leading to inability to carry on business due to expiry of old GST registration in absence of co-operation. Court found no impediment in allowi

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Discrepancies in GST returns ignored petitioner's replies, violating natural justice; order set aside for reconsideration.
Case-Laws
GST
Judicial review of an assessment order was conducted due to discrepancies between GSTR 1 and GSTR 3B returns. The petitioner's replies were not considered, violating natural justice principles. The High Court held the order unsustainable as the petitioner's replies were not taken into account while recording conclusions. Consequently, the impugned orde

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Retrospective amendment allows IGST refund for exporters who paid tax on imported inputs.
Circulars
GST
This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of CGST Rules, 2017, where exporters had imported inputs without paying integrated taxes and compensation cess. It states that if exporters initially imported inputs without paying IGST and cess by availing exemption notifications, but later paid the dues along with interest and got th

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Indian Data Hosting Services to Overseas Cloud Providers Clarified as Export; Not Intermediary or Property-Linked.
Circulars
GST
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 issues: whether the data hosting service provider qualifies as an intermediary, whether the services relate to goods made available by the recipient, and whether they directly relate to immovable property. The key points are: 1) Data hosting service providers do not qualify as intermediaries facilitating supply between cloud providers and end-users, as they provide services on a principal-to-principal basis. Hence, place of supply canno

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Demo vehicles: ITC eligibility for dealers to promote sales.
Circulars
GST
This circular clarifies the availability of input tax credit (ITC) on demo vehicles used by authorized dealers of motor vehicles. Key points are: ITC is available on demo vehicles used for demonstrating features to potential buyers as they promote further supply of such vehicles. However, ITC is blocked if demo vehicles are used for staff transportation. For dealers acting as agents providing marketing services,

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Determining Export Benefits for Indian Advertising Agencies: Place of Supply and Intermediary Status Explained.
Circulars
GST
This circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points are: advertising agencies providing comprehensive advertising solutions, including media planning, content creation, and procurement of media space, are not considered intermediaries under

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Supreme Court: Fresh Grounds Needed for Renewed Asset Attachment Orders; Provisional Order Quashed.
Case-Laws
GST
Provisional attachment order u/s 83 of the Act expires after one year. The department cannot issue a second notice for provisional attachment without providing fresh reasons. The Supreme Court held that a second attachment may be made, but the department must justify it with new grounds. Allowing repeated attachments without fresh reasons would render Section 83(2) redundant

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Tax authorities advised voluntary payments without legal basis, quashed by court.
Case-Laws
GST
The High Court quashed a letter dated March 13, 2024, issued by the Superintendent (A.E.) Central Goods and Service Tax, Gautam Budh Nagar, advising voluntary tax payments without proper legal basis. The Court observed that the Department was advising the petitioner to make voluntary payments without issuing any show cause notice/demand notice/recovery notice, which is unknown in law. The res

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GST Authorities Must Follow GST Act Procedures Before Prosecution; IPC Use Without Sanction Is Invalid.
Case-Laws
GST
The High Court held that GST Authorities cannot launch prosecution invoking penal provisions under the Indian Penal Code without invoking penal provisions of the GST Act, when the alleged offenses are covered under the GST Act provisions. This is especially true without obtaining sanction u/s 132(6) of the GST Act. The GST Act is a special legislation comprehensively dea

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Denial of personal hearing before issuing adverse order on excess ITC claim & GST short payment violates natural justice.
Case-Laws
GST
Violation of principles of natural justice by not granting opportunity of personal hearing before issuing adjudication order demanding excess availment of Input Tax Credit and short payment of output GST, despite adverse decision being contemplated against petitioners. Section 75(4) of GST Act mandates granting opportunity of hearing in such cases, irre

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High Court Annuls Assessment Order for ITC on Motor Cars, Citing Lack of Communication and Natural Justice Violation.
Case-Laws
GST
The petitioner challenged the assessment order and summary in Form DRC-07 for wrongfully claiming Input Tax Credit (ITC) on the purchase of four motor cars, which was ineligible u/s 17(5) of the CGST/TNGST Act, 2017. The petitioner was unaware of the notices due to the introduction of a new “View Additional Notices and Orders” feature on the GST portal, whi

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Delayed GST appeal allowed after precedent; GSTR non-filing condoned on conditions.
Case-Laws
GST
The petitioner's appeal against cancellation of GST registration was filed beyond the condonation period prescribed u/s 107(4) of the GST Act. The petitioner had not filed GSTR returns for over six months. In an identical batch of matters, the Madras High Court allowed writ petitions subject to fulfilling certain conditions. Following this precedent, the Court allowed the present writ petit

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Real estate firm's GST claim rejected, Court orders reconsideration on rising material costs.
Case-Laws
GST
This case pertains to the denial of a GST claim for differential tax liability arising from increased prices of materials and wages. The respondent, BUIDCo, expressed no objection to remanding the matter to the concerned authority for fresh consideration. Consequently, the High Court set aside the impugned order dated 16.11.2019 and remanded the matter to the Chief General Manager

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Tax demand discrepancies led to unlawful property attachment despite pre-deposit made, prompting court relief.
Case-Laws
GST
The High Court granted relief to the petitioner by directing the release of attachment over immovable properties due to discrepancies between GSTR 3B returns and auto-populated GSTR 2A. Despite making the requisite 10% pre-deposit of the disputed tax demand, the attachment was effected contrary to statutory provisions. The court held that once the pre-deposit is m

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Court Rules in Favor of Petitioner on GST Classification, Quashes Notices, and Directs Regularization of Past Returns.
Case-Laws
GST
Challenge to show cause notice u/s 74 of Central/Gujarat Goods and Services Tax Act, 2017 regarding classification of product manufactured by petitioner under HSN 19059040 instead of HSN 19059030 and consequent levy of GST. Court held that in view of minutes of GST Council meeting and circular dated 1st August, 2023, issue was to be regularized on 'as is w

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Seizure and Penalty Orders Quashed for Lack of UP E-way Bill; Court Cites Non-enforceability During March 2018.
Case-Laws
GST
Seizure order for detention of goods due to absence of State E-way Bill was challenged. The Court held that at the time of interception, the Central E-way Bill under GST Act was available, and only the E-way Bill under UP GST Act was not present, which was later produced before passing the penalty order. The issue was covered by previous Division Bench judgments,

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Taxpayer denied natural justice; GST reconciliation errors reconsidered after proof of payment.
Case-Laws
GST
The court held that the petitioner was denied the principles of natural justice by not being given a reasonable opportunity to contest the tax demand on merits regarding the difference between GSTR 3B and GSTR 1, and the RCM liability mismatch. The petitioner provided proof of payment for the GSTR 3B and GSTR 1 difference, and substantiated the RCM liability mismatch as an inadv

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Unfair tax demand due to lack of proper communication; order set aside for reconsideration after partial payment.
Case-Laws
GST
Principles of natural justice violated due to lack of proper communication regarding show cause notice and order, leading to tax demand confirmation without petitioner's response. Court set aside the order and remanded matter for reconsideration, subject to petitioner remitting 10% of disputed tax demand within two weeks, acknowledging procedural lapse despite

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Tax demand adjournment rejected despite valid reasons; opportunity granted on part-payment.
Case-Laws
GST
Principles of natural justice violated due to lack of reasonable opportunity to contest tax demand. Petitioner cited ongoing tax audit and father's illness for seeking adjournment, but failed to submit substantive reply from September 2023 to February 2024 despite sufficient time. Considering health records submitted, petitioner granted opportunity to contest demand by remitting 10%

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