Goods and Services Tax

High Court Rules Petitioners Can't Summon Witnesses During Respondent's Evidence Presentation in GST Case.
Case-Laws
GST
In a case concerning the dismissal of an application to summon an official from the GST Department in Ludhiana along with the GST 3B return record, the High Court held that the petitioners do not have the right to summon witnesses at the stage when the respondent-complainant is producing evidence. The petitioners have the right to cross-examine the respondent-complain

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Land purchase, construction GST credit restricted; SC upholds CGST Act provisions.
Case-Laws
GST
Section 17(5)(c) and (d) of the Central Goods and Services Tax Act, 2017, which restricts input tax credit on GST paid for purchase of land and construction thereon, has been upheld by the Supreme Court. The petitioner sought to claim input tax credit on GST paid for land purchase and construction. However, the issue is no longer res integra and is covered by the Supreme Court's decision in

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Court Quashes FIR on Online Betting Case Due to Lack of Evidence of Deception and Dishonest Intent from the Start.
Case-Laws
GST
Interpretation of Sections 415 and 420 of the Indian Penal Code (IPC) and Section 66D of the Information Technology Act, 2000, in the context of online betting. The court held that for an offence u/s 415 (cheating) to be punishable u/s 420, there must be a person who has been deceived from the inception with a dishonest intention to commit fraud. The court fou

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Court Overturns Order Blocking E-Credit Ledger Due to Lack of Hearing and Justification, Violating Natural Justice.
Case-Laws
GST
The court quashed the order blocking the Electronic Credit Ledger (ECL) of the petitioner u/r 86A of the Central Goods and Services Tax Rules, 2017. The respondents did not provide a pre-decisional hearing to the petitioner, nor did the impugned order contain cogent reasons to believe that blocking the ECL was necessary, violating principles of natural justic

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Tax Credit Dispute: Court Orders ITC Unblocking & Release Per Prior Ruling.
Case-Laws
GST
The court held that the issue in controversy regarding the legality of sub-section (4) to Section 16 of the Central Goods and Service Tax Act, 2017 and the Karnataka Goods and Service Tax Act, 2017, concerning the date of availment of input tax credit (ITC) in the books of account of the petitioner, is directly and squarely covered by its previous judgment in M/s. Sadhana Enviro Engineering Service

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Advisory regarding IMS during initial phase of its implementation
GST
Dated:- 12-11-2024

Invoice Management System (IMS) is an optional facility introduced from October 2024 on GST Portal, on which the invoices/records saved/furnished by the supplier in GSTR-1/1A/IFF, can be accepted, rejected or kept pending by recipients .Based on the action taken by the recipient on the IMS, system will generate the GSTR 2B of the recipient on 14th of subsequent month.
The Taxpayer can accept/reject/keep pending the invoice/record on IMS after due verification from his accounts. The ITC for the rejected record will not be available to the recipient in the GSTR 2B . Further, the liability and input tax credit is being auto -populated in GST

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ut tax credit to the recipient being shown in his GSTR-2B, which will also be auto-populated in his GSTR 3B on the portal. In such cases, the recipient can change the action on the IMS in respect of an invoice/record ( e.g. from rejected to accepted or vice versa) and can recompute his GSTR-2B at any time till the filing of GSTR 3B for the corresponding tax period, so that correct ITC is auto-populated in his GSTR 3B.
Despite this, there may still be some cases, where the recipient is not able to correct the action taken on the IMS, resulting in wrong auto-population of ITC in GSTR 3B of the recipient or wrong auto-population of liability in GSTR 3B of the corresponding supplier. Therefore, during this initial phase of implementation of IM

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Court Invalidates Finance Ministry's Directive on Hand Sanitizer Tax Rate, Ensures Unbiased Product Classification.
Case-Laws
GST
The High Court held that the impugned Press Release by the Ministry of Finance, purporting to direct judicial and quasi-judicial authorities to classify all alcohol-based hand sanitizers as “disinfectants” attracting 18% GST rate, is invalid. The Court ruled that the executive cannot transgress on the functions within the exclusive province of judicial or qua

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Goods release ordered upon deposit & bank guarantee amid tax liability dispute.
Case-Laws
GST
Interim order directing release of goods upon depositing Rs. 4 lakhs challenged. Considering the order, determined liability of Rs. 22,35,932/- on respondent No. 1, and total goods value of Rs. 12,83,354/-, appeal disposed by upholding the order. Additionally, respondent No. 1 directed to furnish a Bank Guarantee from a Nationalized Bank for Rs. 8,83,354/- in favor of the Joint Commissioner of

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Company wins ITC claim; delayed filings acceptable under GST law amendment.
Case-Laws
GST
The High Court set aside the assessment order disallowing Input Tax Credit solely on the ground of delayed filing of claims beyond the prescribed period u/s 16(4) of the GST Acts. The Court directed the assessing adjudicating authority to re-do the assessment considering the amendment. The petitioner was granted three weeks to submit objections after receiving the amended assessment and other detai

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GST Registration Cancellation: Authority's Role Questioned Over Alleged Error in Show Cause Notice; High Court Declines to Intervene.
Case-Laws
GST
Cancellation of GST registration – violation of Section 29(2)(a) of Central Goods and Services Tax Act, 2017. Respondent no. 2 is the proper authority to inquire about cancellation or suspension of GST registration and pass necessary orders. Although a notice might have been issued under an erroneous provision, petitioner no. 1 has liberty t

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Show cause notices clubbing tax demands for multiple years quashed; Dept to issue separate notices per year.
Case-Laws
GST
Consolidated show cause notices for multiple assessment years contravene provisions of CGST Act and legal precedents. Impugned notices grouping demand from 2017 to 2023 quashed, with liberty to issue separate notices for each assessment year u/s 73 of CGST Act. Petition allowed, quashing impugned notices and further proceedings.
TMI Updates – Highlights, quick n

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Exporter's IGST refund regularized if import taxes paid later.
Circulars
GST – States
The 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. Initially, if inputs were imported without IGST and cess by availing exemption notifications, but later the exporter paid IGST, cess with interest and got the Bill of Entry reassessed, then the

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Tax evasion case: Bail for accused in fake invoice scam to claim illegal input tax credits.
Case-Laws
GST
Bail granted to accused in case involving alleged issuance of fake invoices by nine firms for evasion of GST through fraudulent claims of input tax credit. Complaint alleges non-traceable addresses and proprietors of firms used to generate fake invoices. Maximum punishment of five years, accused already in custody for over seven months. Offences compoundable and triable by Magistrat

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Quasi-judicial body violated natural justice by issuing non-speaking order without reasoning.
Case-Laws
GST
Violation of principles of natural justice by the authority in passing a non-speaking order without applying its mind to the material on record. It emphasizes that reasoning is the essence of any quasi-judicial order with adverse consequences. The impugned order merely stated that the reply and documents were unacceptable, without addressing the objections raised by the petitioner

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Tax credit blocked without hearing; Court quashes order citing lack of reasons.
Case-Laws
GST
The Court held that the impugned order invoking Rule 86A of the CGST/SGST Rules by blocking the petitioner's Input Tax Credit (ITC) without providing a pre-decisional hearing violated principles of natural justice. The order lacked independent or cogent reasons, merely relying on reports of the Enforcement authority, which is impermissible as it amounts to borrowed satisfaction. The impugned or

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High Court Rules in Favor of Late GST Refund Application Due to Technical Issues, Sets Precedent for IGST Cases.
Case-Laws
GST
The case pertains to the refund of tax paid by the petitioner under the 'Inverted Duty Structure' in the Goods and Services Tax (GST) regime. The petitioner filed an application for refund on 12.04.2023, beyond the limitation period, claiming a refund of Integrated Goods and Services Tax (IGST) paid. The High Court held that when the amounts in the credit ledger

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Petitioner's Appeal Hindered by Lack of Tribunal; 20% Deposit Required for Stay on Tax Recovery Under B.G.S.T. Act.
Case-Laws
GST
The petitioner is deprived of the statutory remedy of appeal against the impugned order due to the non-constitution of the Tribunal u/s 112(8) and (9) of the B.G.S.T. Act. Consequently, the petitioner cannot avail the benefit of stay on recovery of the balance tax amount upon deposit as contemplated u/s 112(8) and (9). The State authorities acknowledged the n

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Order on GST appeal remedy when Appellate Tribunal not constituted.
Case-Laws
GST
Non-constitution of Appellate Tribunal under CGST/OGST Act deprived petitioner of statutory remedy of appeal against order passed by Authority. Considering Central Goods and Services Tax (Ninth Removal of Difficulties) Order, 2019 and clarification by Central Board of Indirect Taxes and Customs vide Circular No.132/2/2020, High Court deemed it proper in the interest of justice to dispose of the writ petiti

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Goa govt clarifies data hosting services by Indian providers to overseas cloud firms is export of services; place of supply is recipient's location.
Circulars
GST – States
Goa government circular clarifying place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. Key points: Data hosting service providers not considered intermediaries under IGST Act; services not related to goods made available by recipient or immovabl

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Input Tax Credit Available for Demo Vehicles Used for Trials, Not for Staff Use; Conditions Apply for Capitalized Vehicles.
Circulars
GST – States
The circular clarifies the availability of input tax credit on demo vehicles used by authorized dealers for providing trial runs and demonstrating features to potential buyers. It covers two key issues: availability of ITC on demo vehicles u/s 17(5)(a) of the CGST Act, and availability of ITC where demo vehicles are capitalized by dealers. Th

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Indian Advertising Services to Foreign Clients Classified as Exports, Not Intermediary Services, Under GST Rules.
Circulars
GST – States
This circular clarifies the position regarding advertising services provided by Indian advertising companies/agencies to foreign clients. It addresses three key issues: whether the advertising company can be considered an intermediary, whether the foreign client's representative in India or target audience can be considered the recipient, and whether s

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Taxpayers' pre-deposit refunds for GST appeals allowed.
Circulars
GST
This corrigendum clarifies that the restriction on refund u/s 150 of the Finance (No. 2) Act, 2024 will not apply to refunds of pre-deposit amounts paid by taxpayers at the time of filing appeals under sub-sections (6) of Section 107 or (8) of Section 112 of the CGST Act, where such appeals are decided in favor of the taxpayer. It inserts this clarification at the end of paragraph 4 of Circular No. 237/31/2024-GST dat

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Goods seized for lacking e-way bill despite tax compliance; High Court quashes order citing no tax evasion intent.
Case-Laws
GST
Non-generation of e-way bill during transportation of goods led to seizure order u/s 129(3) of GST Act, imposing penalty and interest. However, it was admitted that goods were transported with relevant documents except e-way bill, which was produced before seizure order. No finding recorded regarding intention to evade tax. Relying on precedent, High Court hel

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GST Valid on Mineral Royalties: Supreme Court Upholds Notifications by Central and Himachal Pradesh Governments.
Case-Laws
GST
Royalty paid by a mineral concession holder for mining concessions granted by the State is subject to GST levy. The constitutional validity of notifications issued by the Central and Himachal Pradesh governments imposing GST on such royalty payments is upheld. The Supreme Court's nine-judge bench ruling in Mineral Area Development Authority & Anr. v. Steel Autho

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Court Upholds Second FIR on Misuse of Company Funds; Distinct from Initial Forgery Allegations in Cement Case.
Case-Laws
GST
High Court dismissed petition seeking quashing of FIR related to clandestine manufacture and supply of cement clinker and cement without invoices and accounting. Court held second FIR maintainable as offense under GST Act would not cover misappropriation of company funds for personal use resulting in wrongful loss. Allegations in second FIR pertain to misappropria

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