Goods and Services Tax

Services provided to government under Jal Jeevan Mission are taxable at 18%. Exemption till 31-12-2021. After 01-01-2022, no exemption.
Case-Laws
GST
Services provided to a government entity under Jal Jeevan Mission classified under SAC code 998399. Services to Maharashtra Jeevan Pradhikaran for government functions are taxable at 18%. MJP's setup is lawful as a government-owned body. Exemption applies for services provided before 31-12-2021 under entry No. 3 of Notification No 12/2017.

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Goods like Pani Puri and services like serving cooked food at the counter are taxable at 5% GST rate.
Case-Laws
GST
The case involves the classification of supply of goods or services including Pani Puri, Masala Chat, Punjabi Lassi, Sev Puri, Samosa Chat, Vada Pav, Pav Bhaji without a brand name. It was determined that these items fall under the restaurant sales taxable at 5% GST rate. The service of serving cooked items across the counter is classified under HSN 996331. The applicable

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Input Tax Credit Allowed for Second-Hand Luxury Cars: Evaluation, Refurbishment, and Parts Under CGST Act Sections 16-21.
Case-Laws
GST
Availability of input tax credit is restricted on inward supplies like spare purchases, repairs, and refurbishment costs, except for old or used motor vehicles as per Notification 8/2018-Central Tax (Rate). The applicant, a registered taxpayer dealing in second-hand luxury cars, can claim input tax credit on expenses related to vehicle evaluation, refur

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Demo cars can get Input Tax Credit if used for future supply after demo period. Conditions apply: no depreciation claim, must be used for supply.
Case-Laws
GST
The ruling addressed the eligibility of Input Tax Credit (ITC) for cars used for demonstration purposes. It was held that demo cars can be eligible for ITC if certain conditions are met, particularly if they are intended for further supply after the demo period. The use of cars for demos does not disqualify them from ITC if they

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Insurance Companies Not Liable for GST on Salvage Deductions; Insurers Pay GST When Salvage Ownership Transfers.
Circulars
GST – States
Circular clarifies that insurance companies are not liable to pay GST on salvage/wreck value deducted from claim settlement amount, as salvage remains property of insured. However, if claim settled without salvage deduction, salvage becomes property of insurer who must discharge GST on subsequent supply. For total loss cases where salvage deducted from

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GST Clarifies Time of Supply for Spectrum Usage; Continuous Service Rules Apply to Telecom Operators with Deferred Payments.
Circulars
GST – States
Clarification provided on time of supply of services for spectrum usage and other similar services under GST. For spectrum allocation, where telecom operator opts for deferred payment, it constitutes continuous supply of services as defined u/s 2(33) of WBGST Act. Time of supply governed by section 13(3) of WBGST Act, being earlier of paymen

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Petition dismissed for violation of natural justice principles. Inadequate time given for GSTR mismatch reply. Adjournment denied due to no written reply.
Case-Laws
GST
Violation of principles of natural justice challenged through ex-parte demand order and show cause notice (SCN). Impugned SCN provided less time than stipulated u/s 73(2) of UP GST Act for submitting reply, citing mismatch in GSTR filed. Court held that adjournment application would have been entertained if petitioner ha

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Jurisdiction challenge rejected for non-participation. 10% deposit within 8 weeks for fresh hearing. File replies in 12 weeks. Final order in 2 months.
Case-Laws
GST
Jurisdiction challenge to assessment orders passed by different officer from investigating officer. Petitioner negligent in non-participation in proceedings emanating from notices. Opportunity given subject to 10% disputed tax deposit within 8 weeks. Impugned quashed orders treated as addendum to notices. Petitioner to file

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High Court Grants Bail in Fake GST Entities Case Due to Long Custody and Completed Investigation.
Case-Laws
GST
Grant of regular bail in case involving sale/purchase of fake GST entities, issuance of fake firms and fraudulent beneficiaries of fake GST ITC. Considering attending circumstances, materials on record, law laid down in Ratnambar Kaushik and Satendra Kumar Antil cases, maximum punishment of up to 5 years, petitioner's custody for over 4 months, offence based on documentary evi

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Petition disposed, awaiting SC verdict on GST levy on mining under reverse charge. Recovery proceedings stayed pending appeal disposal. No pre-deposit needed.
Case-Laws
GST
The High Court disposed off the petition, awaiting the final decision of the Supreme Court in UDAIPUR CHAMBERS OF COMMERCE AND INDUSTRY & ORS. VERSUS UNION OF INDIA & ORS. regarding the levy of GST on mining activities under the reverse charge mechanism. The recovery proceedings pursuant to the impugned orders shall

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Writ against GST adjudication order dismissed for violating natural justice. Petitioner can approach Appellate Authority after statutory pre-deposit.
Case-Laws
GST
Writ petition challenging adjudication order u/s 73(9) of West Bengal GST/CGST Act, 2017, dismissed. Proper officer failed to call for records before passing order, violating natural justice principles. Statutory pre-deposit required for appeal not made. Petitioner permitted to approach Appellate Authority after making statut

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Tax liability order set aside due to non-receipt of notice. Reconsider 5% tax demand within 2 weeks & reply to show cause.
Case-Laws
GST
Petition challenging assessment order and consequential bank attachment was allowed. Impugned order imposing tax liability on allegation of sale suppression based on purchase-outward supply value difference was set aside. Petitioner claimed unawareness of proceedings due to non-receipt of show cause notice. Considering petitioner's assertion and nature

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Hostel accommodation exempt for 10 months (Serial No. 12). Short stay (1-2 months) for new students taxable (Serial No. 3).
Case-Laws
GST
Hostel accommodation services provided for 10 months' duration are exempt under Serial Number 12 of Notification 12/2017-Central Tax (Rate), as per the Madras High Court ruling in Thai Mookambikaa Ladies Hostel case. However, such services for 1-2 months to new students during vacation are not exempt under Serial Number 3. For old students extending s

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Delay in availing Input Tax Credit disputed. Rs. 23,35,892/- relief granted. Case remitted for considering GST Council proposals.
Case-Laws
GST
Demand on account of alleged delay in availing Input Tax Credit purportedly Rs. 23,35,892/- out of Rs. 57,12,114/-. Impugned order set aside to that extent, case remitted to consider proposals in GST Council's 53rd Meeting and Finance (No.2) Bill, 2024 (Bill No.55 of 2024) Clause 114 & 146. For balance amount Rs. 33,76,222/-, petitioner given li

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Pre-deposit not made for appeal initially; later paid over 11% of disputed tax. Appellate authority to decide on merits.
Case-Laws
GST
Petitioners did not make required pre-deposit for maintaining appeal – appeal initially filed belatedly, defective and rejected without merits – subsequent appeal filed with pre-deposit also belated – no lack of bona fide – petitioners already paid over 11% of disputed tax, more than required for appeal – matter remanded to appellate authority for decisi

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Petitioner entitled to refund of unutilized ITC on exports. BRCs for realization suffice; can't reject refund for delay in BRC submission.
Case-Laws
GST
The High Court held that the petitioner is entitled to refund of unutilized Input Tax Credit (ITC) on export of goods u/s 16(3) of the Integrated Goods and Services Tax Act, 2017. The petitioner furnished Bank Realization Certificates (BRCs) evidencing realization of sale proceeds, and the application for refund could not be rejected so

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Petitioner's Input Tax Credit claim rejected due to lack of supplier certificates & GSTR mismatch. Recovery stayed for 3 months.
Case-Laws
GST
Petitioner failed to substantiate Input Tax Credit claim due to lack of supplier certificates. Discrepancy noted between Input Tax Credit availed in GSTR 3B and auto-populated in GSTR 2A. Electronic Credit Ledger balance after adjustment indicates inadequate explanation. Petitioner's credit tax position appears incorrect, unable to avail claimed

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RBI penalties for law violations & vendor liquidated damages not taxable under GST as per circular. Disciplinary, not service consideration.
Case-Laws
GST
Penalties, late fees, penal interest, and fines levied by RBI for contravention or violation of laws are for maintaining discipline and deterrence, not consideration for services, hence not taxable under GST as per circular. Penalties for non-performance or underperformance by vendors as per contract with RBI are liquidated damages to

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Govt company with equal Central & State equity denied exemption on leasing services as govts own >20%. 18% GST applicable.
Case-Laws
GST
Applicant, a government company established by Central and State governments with 50% equity participation each, sought advance ruling on eligibility for exemption under Sr. No. 41 of Notification No. 12/2017-Central Tax (Rate) for leasing services provided. The Authority ruled that since the Central/State government has 20% or more ownership in the

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Error not apparent, refund customers first. “Other charges” classification not rectifiable. AAR upheld for equity & uniformity.
Case-Laws
GST
Rectification application dismissed as error not apparent on record. Excess GST collected from customers to be refunded to them before claiming refund from tax authorities to avoid unjust enrichment. Classifying “other charges” as consideration for construction services under HSN Code 9954 or separate services under respective heads not a rectifia

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Polymer Coating for Bridges: Classified as Works Contract, Taxed as Service; Rates Vary Over Time per CGST Act.
Case-Laws
GST
The works rendered by the applicant involving application of polymer protective coating for bridges, as part of construction or routine maintenance/renovation, falls under the definition of “works contract” u/s 2(119) of the CGST Act, 2017, and will be treated as supply of service under Service Code 995473. The composite supply of such works contract for construc

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Refund Application Valid, Court Quashes Rejection on Limitation Grounds; Original Filing to Be Considered on Merits.
Case-Laws
GST
The petitioner filed a refund application within the two-year limitation period for the year 2017-2018 on 17.09.2018, and subsequently filed a fresh refund application on 2.01.2020 after receiving a deficiency memo. The High Court held that the original refund application filed on 17.09.2018 would be considered a proper refund application within the limitati

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Advisory in respect of Changes in GSTR 8
GST
Dated:- 2-8-2024

Please refer to the GST Council decision to the effect that TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.
Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:
1. Period from 1st July to 9th July 202

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Gross and Net GST revenue collections for the month of July, 2024
GST
Dated:- 2-8-2024

Please click on the link below to view the gross and net GST revenue collections for the month of J

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Hybrid Annuity Mode: Unified Contracts for Highway Construction, Maintenance, and Continuous Service Payments.
Circulars
GST – States
Under Hybrid Annuity Mode (HAM) for National Highway Projects, concessionaire constructs new road and provides Operation & Maintenance over 15-17 years with payment staggered over years. HAM contract is single contract for construction and O&M, cannot be split into separate contracts. Payment is continuous supply of services u/s 2(33). Time of supply is d

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