Goods and Services Tax

Non-compliance of mandatory Section 83(1), CGST Act leads to arbitrary provisional attachment order; reasons a must.
Case-Laws
GST
The High Court held that the language of Section 83(1) of the Central Goods and Services Tax Act, 2017 is mandatory and must be followed as it has penal consequences. The impugned order u/s 83(1) should indicate the reasons that weighed with the Commissioner to form an opinion for provisional attachment to protect government revenue interests. Passing an ord

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Tax liability dispute: Interest levy despite credit ledger payment challenged. Court unable to examine merits due to incomplete records.
Case-Laws
GST
The petitioner contested the levy of interest, claiming tax liability was paid from the credit ledger, precluding interest charges. However, the court observed factual issues requiring detailed scrutiny of records. The petitioner failed to annex the response to the show-cause notice, hindering the court's ability to delve into merits. The

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Tax dispute over GSTR mismatch & excess ITC claims; HC remands case for fresh review after 10% disputed tax paid.
Case-Laws
GST
The petitioner challenged the order and summary order alleging discrepancies between GSTR-1 and GSTR-3B, and excess availment of Input Tax Credit (ITC). The petitioner agreed to pay 10% of the disputed tax to file reply/objections with supporting documents. The High Court set aside the impugned orders and remanded the matter for fresh consideration, subject to

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Tax credit denial overruled: Manpower services eligible for ITC as per GST circular.
Case-Laws
GST
Petitioner challenged denial of input tax credit (ITC) on manpower supply services received during 2017-18 to 2022-23, citing Circular No. 211/5/2024-GST. Court held petitioner entitled to ITC and cannot be deprived or liable for interest due to belated claim, as per circular. Circular supports petitioner's claim, binding on respondents as per KP Varghese judgment. However, as circular iss

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Tax return discrepancy: Court orders fresh hearing after paying 10% disputed amount as security.
Case-Laws
GST
The High Court set aside the impugned order and remanded the matter back to the respondent authority to pass a fresh order. This was subject to the condition that the petitioner deposits 10% of the disputed tax amount within 30 days as security. The case pertained to discrepancies between the GSTR-1 and GSTR-3B returns filed by the petitioner. The petitioner had already paid ta

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GST Updates: Lower Rates on Cancer Drugs & Snacks, New Reverse Charge, E-Invoicing Pilot, and Tax Waivers Proposed.
News
GST
GST Council recommends formation of Group of Ministers to study GST on life and health insurance, and future of compensation cess. Exemption recommended for research and development services by government entities, universities using government or private grants. GST rates reduced from 12% to 5% on cancer drugs Trastuzumab Deruxtecan, Osimertinib and Durvalumab. G

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Recommendations during 54th meeting of the GST Council
GST
Dated:- 9-9-2024

GST Council recommends Group of Ministers (GoM) on life and health insurance related GST with existing GoM on Rate Rationalisation; to submit report by end of October 2024
GST Council also recommends formation of a GoM to study the future of compensation cess
GST Council recommends to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution notified u/s 35 of Income Tax Act using government or private grants
GST Council recommends reduction in GST rates on cancer drugs – Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 12% to 5%.
GST Council recommends roll out of a pilot for B2C e-Invoicing
The 54th GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today.
The meeting was also attended by Union Minister of State for Financ

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under HS 2106 90. The GST rate of 5% will continue on un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion.
* To also clarify that the reduced GST rate of 12% on extruded or expanded products, savoury or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through process of extrusion), falling under HS 1905 90 30 is applicable prospectively.
2. Cancer Drugs
* The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to be reduced from 12% to 5%.
3. Metal Scrap
* Reverse Charge Mechanism (RCM) to be introduced on supply of metal scrap by unregistered person to registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
* A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supp

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report by end of October 2024.
* Transport of passengers by helicopters
* To notify GST @ 5% on the transport of passengers by helicopters on seat share basis and to regularise the GST for past period on 'as is where is' basis. To also clarify that charter of helicopter will continue to attract 18% GST.
* Flying training courses
* To clarify by way of a circular that the approved flying training courses conducted by DGCA approved Flying Training Organizations (FTOs) are exempt from the levy of GST.
* Supply of research and development services
* The GST Council recommended to exempt supply of research and development services by a Government Entity; or a research association, university, college or other institution, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961 using Government or private grants.
* Past demands to be regularised on 'as is where is' basis.
* Preferential Location Charges (PLC)
* To clarify that locat

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o educational institutions in the notification No. 12/2017-CT(R) dated 28.06.2017 and GST at the rate of 18% is applicable on the affiliation services provided by the universities.
* Import of service by branch Office
* To exempt import of services by an establishment of a foreign airlines company from a related person or any of its establishment outside India, when made without consideration. The council also recommended to regularise the past period on 'as is where is' basis.
* Renting of commercial property
* To bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM) to prevent revenue leakage.
* Ancillary/intermediate services are provided by GTA
* To clarify that when ancillary/intermediate services are provided by GTA in the course of transportation of goods by road and GTA also issues consignment note, the service will constitute a composite supply and all such ancillary/intermediate services like loadin

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as a composite supply. GST for the past period to be regularised on 'as is where is' basis.
* Measures for facilitation of trade:
* Procedure and conditions for waiver of interest or penalty or both, in respect of tax demands under section 73 of CGST Act, 2017 for FYs 2017-18, 2018-19 and 2019-20 as per section 128A of CGST Act, 2017:
The GST Council recommended insertion of rule 164 in CGST Rules, 2017, along with certain Forms, providing for the procedure and conditions for availment of benefit of waiver of interest or penalty or both, relating to tax demands under section 73 of CGST Act, pertaining to FYs 2017-18, 2018-19 and 2019-20, as per section 128A of CGST Act. The Council also recommended to notify under sub-section (1) of section 128A of CGST Act, 31.03.2025 as the date on or before which the payment of tax may be made by the registered persons, to avail the said benefit as per section 128A of the CGST Act. The Council also recommended the issuance of a circular to cla

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irming demand for wrong availment of input tax credit on account of contravention of provisions of sub-section (4) of section 16 of the CGST Act, but where such input tax credit is now available as per the provisions of sub-section (5) or sub-section (6) of section 16 of the CGST Act, and where appeal against the said order has not been filed. The Council also recommended issuance of a circular to clarify the procedure and various issues related to implementation of the said provisions of sub-section (5) and sub-section (6) of section 16 of CGST Act, 2017.
* Amendments in rule 89 and rule 96 of CGST Rules, 2017 and to provide clarification in respect of IGST refunds on exports where benefit of concessional/ exemption notifications specified under rule 96(10) of CGST Rules, 2017 has been availed on the inputs:
The GST Council recommended to clarify that where the inputs were initially imported without payment of integrated tax and compensation cess by availing benefits under Notifica

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ports.
* Issuance of clarifications through the circulars to remove ambiguity and legal disputes in certain issues:
The GST Council recommended issuance of circulars to provide clarity and to remove doubts and ambiguities arising in the following issues due to varied interpretations by the field formations:
* Clarification on the Place of Supply of advertising services provided by Indian advertising companies to foreign entities.
* Clarification regarding availability of Input Tax Credit on demo vehicles by the dealers of the vehicle manufacturers.
* Clarification on Place of Supply of data hosting services provided by service providers located in India to cloud computing service providers located outside India.
* The Council also recommended amendments in some other provisions of CGST Rules, 2017.
* Other measures:
1. B2C E-invoicing:
The GST Council recommended roll out of a pilot for B2C e-Invoicing, following the successful implementation of e-invoicing in the B2B se

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Commissioner's order for provisional GST attachment quashed due to lack of recorded reasons.
Case-Laws
GST
The High Court quashed the Commissioner's order for provisional attachment u/s 83(1) of the Central Goods and Services Tax Act, 2017 due to lack of reasons recorded. The statutory provision mandates the Commissioner to pass a reasoned order indicating the grounds for forming an opinion that provisional attachment is necessary to protect government revenue. Absence of recorded reaso

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Petitioner gets 2 weeks to reply, respondents 6 weeks to pass reasoned order after hearing; order communicated in 2 weeks.
Case-Laws
GST
Court directs petitioner to submit composite reply to show cause notice within two weeks. Respondents to provide opportunity of hearing to petitioner and pass reasoned order within six weeks of receiving reply. Order to be communicated to petitioner within two weeks thereafter. Court refrains from examining merits, petitioner free to raise points befor

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GST Cancellation Chaos: Retrospective Effect Revoked, Fairness Prevails.
Case-Laws
GST
Cancellation of GST registration with retrospective effect – SCN did not indicate reasons for cancelling registration ab initio – Violation of natural justice principles – Held: Impugned SCN did not propose adverse action of cancelling registration from date of grant. While proper officer can cancel registration with retrospective effect u/s 29(2) of CGST/DGST Act, such action cannot be arbitrary or w

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Illegal GST raid alleged, private data accessed; probe ordered, CCTV sought.
Case-Laws
GST
Petitioner challenged legality of raid conducted on 16.11.2023, alleging unauthorized access to data and private information with connivance of GST officials. Court directed respondent authority to consider petitioner's complaint, take appropriate action if merited, and petitioner to provide CCTV footage within one week. Regarding impugned show cause notice (SCN), petitioner required to meet alleg

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GST registration cancellation order quashed for lack of proper show cause notice and reasoned order.
Case-Laws
GST
Challenge to the cancellation of registration and rejection of an application for revocation of cancellation. The key points are: The show cause notice (SCN) did not identify the issuing authority, violating principles of natural justice as the petitioner could not adequately respond. The SCN lacked details about the alleged fraud, misstatement, or suppression. The order ca

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Court Upholds Order on GST Dispute; Requires 7.5% Payment for Re-assessment and Final Decision on Tax Appeal.
Case-Laws
GST
The High Court examined the challenge to the assessment and demand orders, validity of the show cause notice (SCN), discrepancy in the assessment amount compared to the proposal, and violation of Section 75(7) of the GST Act. The court held that the SCN covered the proposal for assessing tax, interest, and penalty. The assessment amount matched the total proposal u

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Tax registration abruptly cancelled; court restores it temporarily for compliance.
Case-Laws
GST
Rejection of the petitioner's application for revocation of the cancellation order of GST registration. The key points are: the show cause notice (SCN) did not propose retrospective cancellation, violating natural justice principles. Section 29(2) of the CGST/DGST Act empowers retrospective cancellation, but it must be based on cogent reasons, not whimsically or arbitrarily. The impugned can

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Petitioner challenges GST rate hike notice, court rules mere issuance not unlawful, right to reply and appeal available.
Case-Laws
GST
Petitioner challenged the show-cause notice (SCN) in Form GST DRC-01, alleging that respondents sought to levy GST at 28% instead of the prevalent 18% rate paid since 2017. The court held that mere issuance of the SCN to the petitioner and not to counterparts cannot be deemed unlawful. Writ jurisdiction cannot be invoked solely based on the SCN issuance,

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Small dealer's delayed GST return filing condoned; to pay late fees.
Case-Laws
GST
Challenge to order u/s 62 of GST Act, 2017 – petitioner's case of being a small dealer who failed to notice the order. Held that rigors of sub-section 2 to Section 62 need not be pressed as Department's intention is to ensure statutory compliance if dealer complies and pays late fee charges. Delay in filing GSTR 3B on 30.05.2024 beyond 30 days from impugned order dated 30.01.2024 deemed condoned. Petition

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Contractor KG Foundation liable for GST, not petitioner; High Court dismisses petition challenging tax order on construction services.
Case-Laws
GST
GST is levied on construction services on a forward charge basis on the service provider. In this case, services were rendered by KG Foundation, not the petitioner. Therefore, the Additional Government Pleader's contention is accepted. The writ petition filed by the petitioner challenging the rejection order dated 24.11.2022 for the assessm

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Tax demand revoked due to procedural lapse; chance to contest notice after part-payment.
Case-Laws
GST
Principles of natural justice violated as petitioner was not provided reasonable opportunity to contest tax demand due to unawareness of proceedings entrusted to accountant who left abruptly, leading to mismatch between GSTR 3B and auto-populated GSTR 2A. Impugned order set aside on condition of remitting 10% of disputed tax demand within two weeks and permitting petitioner to reply to

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Tax Credit Denial Overturned: Court Orders Reconsideration and Fair Hearing in ITC Dispute Involving Online Coupons.
Case-Laws
GST
The respondent denied Input Tax Credit (ITC) to the petitioner based on alleged purchase of goods under HSN 85171110, non-payment to creditors exceeding 180 days, and payments made to statutory auditors. The court held that the respondent failed to consider the petitioner's reply and confirmed the audit observations without providing a reasonable opportunity

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Bihar, Delhi, Karnataka and Punjab
GST
Dated:- 7-9-2024

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. Th

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ned in point 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 Bihar, Delhi, Karnataka and Punjab.
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

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Taxpayer's plea rejected over non-submission of vehicle movement details like lorry receipts to claim Input Tax Credit benefit.
Case-Laws
GST
Petitioner challenged order blocking Input Tax Credit (ITC) balance due to failure to produce mandatory vehicle movement details like lorry receipt and trip sheet as required u/s 16(2)(b) of CGST Act. Court held petitioner was obligated to furnish such particulars to avail ITC benefit. Since petitioner failed to do so, impugned assessment order wa

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High Court Restores Tax Registration: Petitioner Must File Returns and Settle Dues to Continue Business Operations.
Case-Laws
GST
The High Court set aside the order cancelling the petitioner's registration under the Central Goods and Services Tax Act, 2017 and the West Bengal Goods and Services Tax Act, 2017, subject to the condition that the petitioner files returns for the entire period of default and pays the requisite amount of tax, interest, fine, and penalty, if not already paid.

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Tax demand quashed for violating natural justice; fresh chance to contest.
Case-Laws
GST
The High Court set aside an assessment order due to lack of reasonable opportunity for the petitioner to contest the tax demand on merits. The show cause notice and other communications were uploaded on the GST portal's “View Additional Notices and Orders” tab but not communicated through other modes, violating principles of natural justice. The court ordered the petitioner to remit 10% of the dispu

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GST refund claim stuck due to technical glitch, Court intervenes for speedy resolution.
Case-Laws
GST
Petitioner approached the Court seeking direction to respondent authorities to decide application for GST refund for December 2017 and January 2018, which was denied due to technical issues in GSTN portal. Court directed respondents to consider petitioner's representation within four weeks, providing opportunity of hearing, and place findings on record. Matter adjourned to specified dat

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Registration cancelled without reasons, violating natural justice. Delayed appeal dismissed.
Case-Laws
GST
Order cancelling petitioner's registration violated principles of natural justice as it was passed mechanically without application of mind and without assigning reasons. Appeal against cancellation dismissed on ground of delay. Reasons are essential for judicial and administrative orders. Doctrine of merger inapplicable due to circumstances. Referring to precedent, order without r

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