Goods and Services Tax

Overseas recruiters face IGST scrutiny on expat salaries – Court directs tax body to consider circular.
Case-Laws
GST
Petitioner sought to quash the show-cause notice (SCN) demanding Integrated Goods and Services Tax (IGST) along with interest and penalty on salaries paid to expatriates. The issue pertained to whether the supply of manpower and recruitment services from overseas group entities to the petitioner attracted IGST. The High Court did not delve into the merits but relegated t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Unlawful recovery notice issued; GST Act & natural justice violated. Taxpayer's representation to be reconsidered within 2 weeks.
Case-Laws
GST
Recovery notice issued without proper reasons, violating Section 78 of GST Act and principles of natural justice. Petitioner filed representation challenging notice. High Court directed respondent authority to consider petitioner's representation and dispose of the same on merits within 2 weeks, in accordance with law. Petition disposed of.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Bail upheld for alleged tax credit fraud; agency criticized for delayed investigation.
Case-Laws
GST
Petition seeking cancellation of bail granted to respondents in a case involving filing of input tax credit for non-operational firms was dismissed. The Department contended that bail was granted at an early stage without opportunity for custodial interrogation, and that investigation into claimed input tax credits from firms with no supplies and background checks of firms and transporte

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court upholds authority's power to issue notice alleging fraud, asks petitioner to respond – no interference at this stage.
Case-Laws
GST
The respondents were permitted to proceed against the petitioner under the provisions of the Act, including invoking powers u/s 74, following the court's modification order granting liberty to consider the matter beyond Section 73. The challenge to the notice issued u/s 74 alleging fraud or suppression of facts cannot be assailed. The determination of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Second edition of National Conference of Enforcement Chiefs of State and Central GST Formations held in New Delhi
GST
Dated:- 21-8-2024

Two months' Special drive by Central and State formations to identify and weed out fake registrations underway since 16th August
Central and State GST formations must focus on fake registrations during the special drive to ensure deterrence: Revenue Secretary
Balance between enforcement actions and ease of doing business is important: Revenue Secretary
Enforcement units must focus on real evasion: CBIC Chairman
The second edition of the National Conference of Enforcement Chiefs of the State and the Central GST Formations was held in New Delhi. The conference was chaired by Shri Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance. The National Conference comes in the backdrop of special drive being undertaken by both Central and State formations to identify and weed out fake registrations.
The Conference was att

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the efforts of tackling GST evasion in a systematic manner.
Setting the context of the one-day conference, Shri Sanjay Agarwal, Chairman, Central Board of Indirect Taxes and Customs (CBIC), recalled the discussion in the first edition of the conference and emphasised the need for enforcement agencies to stay ahead of the evaders so that the sanctity of the GST system is preserved. He advised the enforcement units to focus on real evasion rather than interpretative issues and general industry practice.
In his welcome address, Shri Vivek Agarwal, Additional Secretary, Revenue, expected that the participating officers would benefit from the agenda which includes discussion on sector specific enforcement issues, emerging issues in enforcement and techniques to tackle evasion. He stressed the importance of following up on the actions identified so that the useful purpose of the deliberations in the conference are achieved.
During the one-day conference, various presentations were also m

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

masterminds and disrupt syndicates, operating across the country; with 170 such masterminds have been apprehended already. Some of the best practices/guidelines issued to bring in uniformity in action and ensuring ease of doing business were also deliberated.
Commissioner of Maharashtra State GST showcased the GST Enforcement Management System (GEMS) implemented in the State to ensure that the enforcement actions are properly tracked and closed so that there is transparency in the process and demands are crystallised within a reasonable time paving way for higher probability of recovery of evaded taxes.
During the focussed thematic sessions, zonal units of DGGI/CBIC presented various case studies on misuse of APMC accounts, fintech companies, clandestine clearances, issues in financial sector, taxation of emerging service sector as cryptos, NFTs, TDRs etc.
Chief Commissioner Tax (CCT), Gujarat, discussed the modes of evasion detected in manpower supply services and presented the le

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Uniform tax interpretations: CGST audit to consult policy wing before issuing show cause notice over divergent trade practices.
Circulars
GST
The Board directs that during audits, when the CGST Audit Commissioner encounters a scenario where an issue involves differing interpretations of the CGST Act, Rules, notifications or circulars, leading to non-payment or short payment of tax, and the taxpayer is following a prevalent trade practice based on a particular interpretation, the Zonal C

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Jurisdictional Limits on Appellate Authority for Delay in Appeals u/s 107(4) of the 2017 Act.
Case-Laws
GST
The judgment addresses the jurisdiction and competence of the Appellate Authority u/s 107(4) of the Act of 2017 to condone delays in filing appeals against decisions or orders passed by an adjudicating authority beyond the prescribed time limit. The Court relied on the Supreme Court's decision in Bengal Chemists and Druggists Association v. Kalyan Chowdhury, which interpreted a si

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Refund claim rejected on technicality; courts intervened to review interpretation & evidence, remanding case for fresh decision.
Case-Laws
GST
Refund claim rejected solely on non-compliance of time limit u/s 34(2) of Central Goods and Services Tax Act, 2017. Appellant authority noted facts, grounds, submissions but dismissed appeal without addressing misinterpretation of Section 34(2) raised by appellants. High Court quashed orders of authorities, remanded matter to consider refund appl

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dismissing refund plea, Court upholds reasoned order; directs statutory appeal route over writ jurisdiction.
Case-Laws
GST
High Court rejected petitioner's writ petition challenging refund rejection order, observing that respondent authority had passed reasoned order after considering petitioner's reply and deficiencies in refund application. Court held that petitioner ought to have availed statutory appeal remedy instead of directly approaching Court. Under Article 226, High Court's ju

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Natural Justice Breach: Order Issued Without Petitioner's Response Due to Lost Documents; Disciplinary Action Considered.
Case-Laws
GST
Violation of principles of natural justice by the respondents. Impugned order passed without giving opportunity to petitioner to reply to show cause notice. Non-receipt of documents hindered petitioner's reply. Respondents lost original documents admittedly taken from petitioner, prejudicing petitioner's rights – a serious matter requiring action. Commi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax transit goods detention if compliance lapses; paid u/s 129 adjustable in returns.
Case-Laws
GST
The impugned circular dated 13.04.2018 does not lead to double taxation. Section 129 aims to recover tax on goods in transit where statutory compliance for removal was not met. The tax collected at detention stage is the tax payable in returns. If excess tax is paid in GSTR-3B after detention and payment u/s 129, the supplier can claim refund. The petitioner's apprehension of double taxat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Business faces tax filing delay backlash, court offers reprieve on penalty condition.
Case-Laws
GST
The petitioner challenged orders u/s 62 of the TNGST Act for failing to furnish returns from April to July 2023 within the prescribed period. The High Court held that considering similar circumstances where the petitioner was granted an opportunity upon payment of 25% of the differential tax, it directed the petitioner to deposit 25% of the differential tax between the tax remitted in GST

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST notices quashed over clerical error, petitioner to pay 15% disputed tax for fresh hearing.
Case-Laws
GST
Challenge to an order issued under Form GST DRC-07 for the difference in tax amount between GSTR 3B and GSTR 1. The impugned orders were passed without considering the petitioner's reply, violating the principles of natural justice. The court held that the respondent failed to consider the petitioner's reply, which stated a clerical error in GSTR 3B and correct filing of GSTR 1,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Financial crisis led to GST default, court restores registration to enable business & tax compliance.
Case-Laws
GST
GST registration cancellation due to default in payment caused by financial crisis. Court set aside cancellation order, directing restoration of registration to enable business operations, filing returns, and remitting statutory dues as per law. Petition disposed, allowing petitioner to continue business and facilitate tax collection by the state.
TMI Updates – Highlig

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Rules GST Not Applicable on Maldives Exports; Orders Reimbursement of Taxes, Interest, and Penalties.
Case-Laws
GST
Key issues of levy of GST on export of goods to the petitioner's Maldives office, zero-rate supplies, fixed establishment, location of recipient and supplier of services. The court held that the petitioner and respondent had fixed establishments in Addu City, Maldives, and the petitioner was re-registered there, not constituting a separate legal entity. The scope of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax assessment order challenged; HC grants interim protection, questions notification's legality.
Case-Laws
GST
Interim protection granted by High Court against coercive action based on assessment order pending challenge to notification No. 56/2023 issued u/s 73(9) of CGST Act, 2017. Court prima facie observed notification may be ultra vires Section 168A. Examination required regarding applicability of force majeure based on GST Council meeting minutes. Respondents directed to file affi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

High Court dismisses plea on reversing input tax credit availed by buyer due to factual dispute, not jurisdictional error.
Case-Laws
GST
Petition dismissed by High Court regarding reversal of input tax credit. Court found it was not a case where authorities proceeded on assumption that input tax credit was wrongly availed by buyer despite existence of seller/supplier. Factual dispute raised, not jurisdictional issue or violation of natural justice principles. Petitioner granted liberty

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Dealers Must Provide Comprehensive Documentation for ITC Claims Under UP GST Act to Avoid Double Taxation Denial.
Case-Laws
GST
Validity of input tax credit (ITC) u/s 16 of the UP GST Act hinges on compliance with specified conditions to avoid double taxation. The burden lies on the dealer to prove fulfillment of conditions for claiming ITC. Merely producing tax invoices, e-way bills, and banking channel payments is insufficient. Proof of actual physical movement of goods, genuineness o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Unfair assessment order quashed, authority directed to grant personal hearing.
Case-Laws
GST
The impugned order was passed ex parte without providing notice to the petitioner for the subsequent hearing date, violating principles of natural justice. Relying on a coordinate bench judgment in M/s Shubham Steel Traders Vs. State of U.P. and Another, where it was held that by not passing the order on the scheduled date and not communicating the next date, the assessing authority forced an ex

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Accused Granted Bail in GST Fraud Case Involving Fake ITC Claims and Rs. 196 Crore Transactions; Lacks Sufficient Evidence.
Case-Laws
GST
The court granted regular bail to the petitioner in a case involving allegations of fraudulent claim of Input Tax Credit (ITC) and furnishing fake GST certificate for opening a bank account. The first allegation pertained to claiming ITC of Rs. 3,65,23,076/- without the corresponding tax being deposited by the supplying firms. The court held that pros

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Retrospective GST registration cancellation upheld from business closure date, subject to address & KYC update.
Case-Laws
GST
GST registration cancellation does not affect taxpayer's liability or recovery of dues. Petitioner's registration cancelled retrospectively, challenged effective date. Court held cancellation valid from date petitioner stopped business operations, subject to furnishing correspondence address and KYC documents within two weeks to satisfaction of proper officer. Pe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Voids Orders on Input Tax Credit for Lack of Justification, Restores GST Registration, Demands Reassessment.
Case-Laws
GST
The impugned orders u/s 16(2)(c) of the CGST/DGST Act, 2017 demanding excess Input Tax Credit (ITC) due to non-reconciliation of information are set aside as they lack reasoning and violate principles of natural justice by not dealing with explanations submitted. The Court noticed a pattern of unreasoned orders being passed near the limitation period's expiry,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Registration Restored: Court Overturns Unjust Cancellation Due to Flawed Show Cause Notice and External Influence.
Case-Laws
GST
Cancellation of a petitioner's Goods and Services Tax (GST) registration. The Show Cause Notice (SCN) did not provide specific details of the allegations, violating principles of natural justice. The petitioner had applied for revocation of the cancellation order, stating that business activities were halted due to COVID-19 but would resume gradually. The

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Registration cancelled due to time limit, GST authority's decision upheld.
Case-Laws
GST
The High Court dismissed the appeal against the cancellation of the petitioner's GST registration in Form GST REG-19 with effect from 01.05.2023, on the ground of time limitation. The Court upheld the order of the appellate authority rejecting the appeal in limine, in view of the statutory limitation prescribed under the Act. The issue was covered on merits by a previous decision of the Court, where

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Cancellation of GST registration upheld due to delay; restoration possible within 7 days after fulfilling requirements.
Case-Laws
GST
Petition challenging cancellation of GST registration dismissed on grounds of limitation. Petitioner directed to approach competent authority for restoration of GST number within seven days, subject to completion of requisite formalities, filing returns, and depositing taxes, penalty, and interest. Order based on similar previous decisions, without examin

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =