Goods and Services Tax

Custodial services by banks/FIs to FPIs not treated as services to 'account holder' u/s 13(8)(a) IGST Act. Determined under default 13(2).
Circulars
GST – States
Clarification provided that custodial services provided by banks or financial institutions to Foreign Portfolio Investors (FPIs) are not treated as services provided to 'account holder' u/s 13(8)(a) of IGST Act. Such services are not covered u/s 13(8)(a). Place of supply of custodial services to FPIs is to be determined under d

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Jammu & Kashmir and West Bengal
GST
Dated:- 2-8-2024

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. The a

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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. Once 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.
6. At the time of the visit of GSK, the applicant is required to carry the following details.
(a) a copy (hard/soft) of the appointment confirmation e-mail
(b) the details of jurisdiction as mentioned in the intimation e-mail
(c) Aadhaar Card and PAN Card (Original Copies)
(d) the

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Excess stock triggers GST Act Sections 73/74, not Section 130. Court quashes orders invoking Section 130 for excess stock found during survey.
Case-Laws
GST
Excess stock found during survey triggered initiation of proceedings against petitioner. Court held if excess stock found, proceedings u/ss 73/74 of GST Act should be invoked, not Section 130 read with Rule 120. Court relied on previous judgment holding excess stock attracts Sections 73 & 74, not Section 130 read with Rule 122. Law

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Petitioner allowed to rectify GST returns beyond time limit u/s 39(9) as no revenue loss. Respondents to open portal for amendment.
Case-Laws
GST
Petitioner sought rectification of errors in GST returns due to non-compliance with time limitation u/s 39(9) of CGST Act. Court held no revenue loss if rectification permitted, relying on Star Engineers case. Respondents directed to open portal within a week to enable petitioner to amend GSTR-1 and GSTR-3B within a week. Petition disposed.

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Petitioner challenged ITC mismatch order. Court set aside order, remitted case for fresh orders considering amended Rule 36(4).
Case-Laws
GST
Petitioner challenged order u/s 74 of TNGST Act, 2017 for assessment year 2017-18 due to mismatch between GSTR 3B and auto-populated GSTR 2A regarding input tax credit. Court held that respondent failed to consider changes in CGST Rules, 2017, particularly Rule 36(4). Difference between GSTR 2A and GSTR 3B attributable to mismatch for supplies by

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Geo Membrane classified under Chapter 59, not 39 as per CTM case. GST 12% from 15.11.2017, not 18%. Discounted rate applies.
Case-Laws
GST
Classification dispute regarding Geo Membrane manufactured by petitioner – whether to be classified under Chapter 59 or Chapter 39 of Tariff. Court relied on Coordinate Bench decision in MESSERS CTM TECHNICAL TEXTILES LTD case, holding product falls under Chapter 59, not Chapter 39 as ruled by Gujarat Advance Ruling Authority. Petitioner liable to pa

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Refund claim time limit challenged. Online GST appeal filed timely on 31.10.2022. Hard copy not required. Impugned order set aside.
Case-Laws
GST
Refund claim time limitation was challenged – Appeal filed online on GST portal on 31.10.2022 within prescribed period as per Rule 108(1) of GST Rules – Order appealed against was uploaded on common portal, thus filing hard copy not required u/r 108(3) proviso – Even otherwise, hard copy filing merely procedural – Impugned order rejecting appe

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Petition Dismissed: Alternative Remedy Available Under GST Act Section 107; Disputed Facts Require Appellate Review.
Case-Laws
GST
The petition is dismissed as an alternative efficacious remedy is available to challenge the impugned order u/s 107 of the GST Act. While violation of natural justice and vires of Section 16(2)(c) are grounds to entertain the writ, disputed questions of fact regarding opportunity of hearing and composite invocation of Section 16(2)(b) and 16(2)(c) necessitat

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Seat covers permanently fitted over raw foam seats by OEMs/seat manufacturers are classifiable under HSN 9401 or Sl. No. 435A, not 940120 or 8708.
Case-Laws
GST
Seat covers designed to permanently fit over raw foam seats of vehicles by OEMs or seat manufacturers are classifiable under HSN 9401 as “Seats and parts thereof other than aircraft seats” or Sl. No. 435A under Schedule III of N/N. 1/2017-Central tax (rate) dt. 28.06.2017 as amended. Seat covers are accessories for protection an

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Mangala Borosan and G1 Not Classified as Fertilizers Due to Lack of Essential Elements; Upheld by AAAR Decision.
Case-Laws
GST
Mangala Borosan and Mangala G1 are not classifiable under Chapter Heading 3105 as Fertilisers as they lack essential fertilizing elements like Nitrogen, Phosphorus, or Potassium as stipulated by Chapter Notes. Classification is determined by product description, inclusion/exclusion in Section/Chapter Notes, and General Rules of Interpretation, not claimed usage

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Applicant's Services to Agriculture Not Composite Supply Under GST; No Joint Venture with Shell per Section 2(30.
Case-Laws
GST
Supply of support services to agriculture, forestry, fishing, animal husbandry by applicant is not a composite supply under GST law. Applicant makes distinct supplies to Shell and farmers, not a single supply to one recipient. Supplies to Shell and farmers cannot be clubbed as composite supply per Section 2(30) of CGST/SGST Acts. Applicant obtains carbon credit

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Ministry of Finance establishes GST Appellate Tribunal with Principal Bench in Delhi, 36 State Benches across India from Sep 1, 2023.
Notifications
GST
Pursuant to sections 109(1), (3) and (4) of the Central Goods and Services Tax Act, 2017, the Ministry of Finance constituted the Goods and Services Tax Appellate Tribunal (GSTAT) with effect from September 1, 2023. The Principal Bench was established in New Delhi, and 36 State Benches were constituted across various locations. The notif

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Detailed Manual and FAQs on filing of GSTR-1A
GST
Dated:- 1-8-2024

As per the directions of the Government vide notification no. 12/2024 dt 10th July 2024, Form GSTR-1A has been made available to the taxpayers form July 2024' tax period. GSTR-1A is an optional facility to add, amend or rectify any particulars of a supply reported/missed in the current Tax period's GSTR-1 before filing of GSTR-3B return of the same tax period.
GSTR-1A shall be open for the taxpayer after filing of

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Petition maintainable despite pending appeal on different cause. Claimed ITC refund for exports Sep'19-Jan'20. Approach appellate authority.
Case-Laws
GST
Maintainability of petition challenged on different cause of action. Petitioner claimed refund/Input Tax Credit for purchase of goods utilized in manufacturing and export of garments from September 2019 to January 2020. Though Special Appeal pending before Court on writ petition, cause of action different. Writ petition disposed, dire

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Court Grants Bail, Quashes Summons & Non-Bailable Warrant in Tax Liability Case Under Finance Act & CGST Act.
Case-Laws
GST
Quashing sought of summoning order and non-bailable warrant against applicant u/ss 89, 83 of Finance Act, 1944, Section 174 of CGST Act, 2017 and Section 9 r/w Section 9(AA) of Central Excise Act, 1944 regarding tax liability on services provided by applicant to educational institutions between April 2014 and June 2017. Application disposed of, subject to condition

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Court Overturns GST Penalty for Minor Address Discrepancy, Citing Unjust Burden on Compliant Taxpayers.
Case-Laws
GST
Levy of penalty u/s 129(5) of GST Act for discrepancy between PIN code of petitioner in Tax Invoices and E-Way Bill. Court held minor discrepancy in PIN code in GST Registration and Tax Invoices as minor violation of GST enactments. Difference in address in E-Way Bill and Tax Invoices due to Head Office and actual dispatch place. Petitioner earlier obtained VAT registrat

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Excess stock found, proceedings initiated u/ss 73 & 74 of UPGST Act applicable, not Section 130. Previous ruling overturned. Order set aside.
Case-Laws
GST
Excess stock found during survey on 24.08.2018, proceedings initiated. Court held that if excess stock found, proceedings u/ss 73 & 74 of UPGST Act applicable, not Section 130 read with Rule 122. In previous case, Court ruled even if excess stock found, proceedings u/s 130 of UPGST Act cannot be initiated. Impugned order set aside, p

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Impugned orders set aside, cases remitted for re-examination as per CBIC Circular. Petitioner not liable if no invoice raised.
Case-Laws
GST
Impugned orders set aside, cases remitted to re-examine issue in light of CBIC Circular No.221/15/2024-GST dated 26.06.2024. Petitioner prima facie not liable to pay tax if no invoice raised on NHAI. Tax liability arises when petitioner raises invoice for payment or receives annuities. Mere sub-contracting and advance completion of work for receivi

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Court Dismisses Petition Against GST Registration Cancellation; Show Cause Notice Found Deficient u/r 25.
Case-Laws
GST
Violation of principles of natural justice – Show cause notice did not disclose reasons for cancellation of petitioner's GST registration. Mere disclosure of reasons does not satisfy Rule 25 of GST Rules regarding physical verification of business premises. Respondents did not notify petitioners about attempt to identify petitioner's place of business. Postal endorseme

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Consultancy for water schemes under Jal Jeevan Mission exempt if supplied before 01.01.2022 to MJP, a 'Governmental Authority'.
Case-Laws
GST
Consultancy services provided to Maharashtra Jeevan Pradhikaran (MJP) for water supply schemes under Jal Jeevan Mission, a Government of India initiative, are exempt from GST if time of supply is before 01.01.2022. MJP, established by Maharashtra State Legislature, qualifies as 'Governmental Authority' for exemption purposes before 01.01.2022. Fun

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Ad space in print media classified as pure service, exempt from tax under GST for municipal corporations' recruitment ads.
Case-Laws
GST
Exemption from tax for supply of selling space for advertisement in print media qualifies as pure service under Entry 3 of Exemption Notification. Supply does not constitute composite supply of goods and services under Entry 3A. Pune and Pimpri Municipal Corporations are local authorities u/s 2(69) of GST Act for Entries 3 and 3A. Content of advertisem

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Services before 18.07.2022, invoiced later for price escalation, attract 18% GST despite earlier 12% rate under works contract. : , , , ,
Case-Laws
GST
Services supplied before 18.07.2022, invoices proposed for price escalation. Rate of GST 18% applicable as per Section 14(a)(i) of CGST Act, 2017 on invoices issued after 18.07.2022 for price escalation against works contract services executed prior to 18.07.2022, despite services originally taxable at 12% under Notification 24/2017-CT(R

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Transfer of ESOP/ESPP/RSU by foreign holding co. to employees of domestic subsidiary co. sans fee/markup is GST-exempt.
Circulars
GST – States
Transfer of ESOP/ESPP/RSU by foreign holding company to employees of domestic subsidiary company does not attract GST where no additional fee, markup or commission is charged. Securities/shares are neither goods nor services under GST law. Reimbursement by domestic subsidiary to foreign holding company on cost-to-cost basis for transfer of securi

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Petitioner's reply to GST notice not considered, violating natural justice. Court orders fresh consideration of petitioner's own case.
Case-Laws
GST
Validity of notice issued u/s 73 of the U.P. Goods and Services Tax Act, 2017 challenged due to non-consideration of petitioner's reply, violating principles of natural justice. Court held petitioner's grievance valid as notice contained facts and figures relating to unrelated entity. Directed respondent to consider petitioner's reply regar

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Confiscation Orders Invalid Without Prior Action u/s 129 of CGST Act; Cases Sent for Re-adjudication.
Case-Laws
GST
The interplay between Sections 129 and 130 of the CGST Act was analyzed. Section 129 applies when goods are in transit, while Section 130 allows confiscation and penalty for specific violations. Proceedings u/s 130 without prior Section 129 action were deemed invalid. Non-affixture of DIN on confiscation order and violation of natural justice principles by not providing ma

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