Goods and Services Tax

Petroleum Dealer Margins Taxable Under GST as Supply of Service; Discounts Clause Not Applicable; 18% Tax Rate Applied.
Case-Laws
GST
The differential dealer margin provided by the petroleum companies to its retail dealers is considered a taxable supply of service under GST. The amount paid as differential dealer margin is a consideration received for agreeing to the obligation to refrain from an act, which falls under clause (e) of Sl No. 5 of Schedule II of the CGST Act, 2017, and is

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Application inadmissible under Sec 97(2) CGST/KSGST Act. Sec 98 procedures not followed. Questions already decided/pending for applicant.
Case-Laws
GST
The authority cannot admit the application as the questions raised do not fall under the purview of section 97(2) of the CGST/KSGST Act 2017. Section 98 specifies the procedures for processing an advance ruling application, including forwarding a copy to the jurisdictional officer, examining records, and conducting hearings. The authorit

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Advance Ruling Application Challenges ITC Reversal on Credit Notes Due to GSTR-3B and GSTR-2A Mismatch Discrepancies.
Case-Laws
GST
Advance Ruling application on maintainability – Reversal of input tax credit to extent of tax element in credit note – no agreement between parties on credit notes not treated as financial/commercial credit notes – no agreement to reduce ITC claim – mismatch of ITC claim figures between GSTR-3B and GSTR-2A – impact of incorrect output tax liability reductio

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Goods Detention for Missing E-Tax Invoice Quashed; No Mens Rea Found u/s 129(3.
Case-Laws
GST
Goods detained on ground of non-generation of E-Tax Invoice as per Rule 48 of GST Rules before movement; all required documents u/r 138A accompanied goods; technical error by petitioner in not generating E-Tax Invoice; no discrepancy in quality/quantity of goods; error a human error; prior to 01.08.2022, dealers with annual turnover over Rs. 20 crores required to issue E-Waybill; in absence of

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GST registration cancelled retrospectively without reasons, violating natural justice. Cancellation order set aside. Proper officer's power not arbitrary.
Case-Laws
GST
Failure to file returns for a continuous period of six months led to cancellation of GST registration. Cancellation order did not specify reasons for retrospective cancellation from registration date, violating principles of natural justice. Proper officer's power to cancel registration from a date cannot be arbitrary, m

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Non-receipt of show cause notice violated natural justice. Order set aside, fresh hearing ordered. Authorities must provide all documents within 2 weeks.
Case-Laws
GST
Violation of principles of natural justice occurred due to non-receipt of show cause notice (SCN). Petitioner disputed receiving SCN, repeatedly mentioned non-receipt, and claimed it was untraceable. Despite petitioner's requests on three occasions, respondent failed to provide copy of SCN without prejudice to their stanc

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GST authorities redesigned portal, but issued notice before change. Court allows petition, sets aside order & remands for fresh review.
Case-Laws
GST
Time limit u/s 73(10) of CGST Act for passing order u/s 73(9) – GST authorities re-designed portal to ensure 'View Notices' and 'View Additional Notices' tabs under one heading, but impugned show cause notice issued before portal redesign. Present petition allowed, impugned order set aside, matter remanded to adjudicating authority for fre

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Petitioner's GST registration cancellation challenged. Court ordered verification of additional business place within 3 weeks for restoration.
Case-Laws
GST
Cancellation of GST Registration of petitioner challenged. Petitioner had additional place of business registered and reflected in GST certificate. Application rejected on ground reasons for revocation not covered under Amnesty Scheme. Court disposed petition directing respondents to verify within three weeks if petitioner carrying

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Cancellation of GST registration quashed due to lack of reasoning, violation of natural justice. Constitutional remedy available despite time-bar.
Case-Laws
GST
Impugned orders cancelling GST registration set aside due to non-application of mind, lack of reasons, violation of natural justice principles. Time limitation bars appeal remedy but not constitutional remedy under Article 226 when valuable rights affected by arbitrary order sans reasoning. Petition allowed, cancellation orders

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Paid IGST instead of CGST+SGST? Approach appellate authority for relief from penalty & interest if bona fide mistake.
Case-Laws
GST
Petitioner paid IGST but respondent did not take benefit of ITC. Dispute not settled. Appellate authority to consider grievance regarding payment of penalty and interest if petitioner made bona fide mistake in paying IGST instead of CGST and SGST. Petitioner directed to approach appellate authority u/s 107 within two weeks along with application for interim

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GST Registration Cancellation Overturned for Lack of Reasoning and Violation of Natural Justice Principles.
Case-Laws
GST
Cancellation of GST registration without specifying reasons violated principles of natural justice; cryptic show cause notice failed to mention specific provisions allegedly violated, making it impossible to respond meaningfully; unreasoned cancellation order did not disclose grounds for adverse action; impugned show cause notice and cancellation order set aside for

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Court Dismisses Petition Against GST Registration Cancellation; Petitioner to Address Clarified Allegations in SCN Proceedings.
Case-Laws
GST
Petitioner challenged show cause notice (SCN) for cancellation of GST registration on ground that allegations were not specified; Court observed that while SCN did not set out allegations, respondent clarified allegations during proceedings; setting aside SCN would only require respondent to reissue notice; hence, petition disposed of, allowing pe

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Circular No.9 upheld; no need for notification to authorize adjudication power under Sec 2(91). Assessing authority's dual role valid.
Case-Laws
GST
Circular No.9 dated 24.05.2019 challenged – authority to delegate power of adjudication by circular contrary to Section 167 requiring notification – assessing authority being inspecting authority leading to conflict of interest. Court held circular traceable to Section 2(91), not Section 167, hence notification unnecessary for authorizing a

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Car lease facility by employer is taxable if exact amount is recovered from employees' salaries as it's a supply of service.
Case-Laws
GST
Car lease facility provided by employer to employees does not qualify as perquisite if employer recovers exact lease amount from employees' salaries; it constitutes supply of service by employer liable to GST as it does not fall under Entry 1 of Schedule III of CGST/TNGST Acts covering services by employee to employer in course of employment.
TMI

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ITC Allowed for Employee Transport Services Under Tamil Nadu Law for Women's Safety During Night Hours.
Case-Laws
GST
Input tax credit on services of leasing, renting or hiring of motor vehicles to provide transportation facility to ensure safety and security of women employees as per Tamil Nadu Shops and Establishments Act, 1947 is eligible to be availed, subject to conditions u/s 16 of CGST Act, 2017. ITC shall be available only for tax paid on services for providing transport facilit

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Agro-Chemical R&D Services on Insecticide Mosquito Nets Not Exempt from GST, Limited to Pharmaceutical Sector Only.
Case-Laws
GST
The Applicant provides research and development services related to the agro-chemical sector, specifically testing and analysis of insecticide-infused mosquito nets. The Applicant sought clarification on the applicability of Notification No. 04/2019-Integrated Tax, which exempts certain research and development services in the pharmaceutical sector from GST.

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FAO UN grant not a supply under GST Act. Grant received gratuitously, not for goods/services. Activities using grant not taxable supply. No GST payable.
Case-Laws
GST
The grant from the Food and Agriculture Organisation of UN is not a supply under the GST Act. The applicant will not supply any goods or services to the FAO for the grant received. It is a gratuitous grant for overcoming obstacles faced by the applicant during the pandemic. The activities undertaken by the applicant using

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Violation of natural justice – notices on GST Portal led to unawareness. Case remitted for fresh order after depositing 10% tax. Impugned order quashed.
Case-Laws
GST
Violation of principles of natural justice – petitioner was unaware of the impugned order due to notices being hosted on GST Common Portal, resulting in unawareness for the proprietary concern – Writ Petition disposed by remitting case to pass fresh order subject to petitioner depositing 10% of disputed tax from Electronic

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Excess stock found during survey can't initiate proceedings u/s 130 of UPGST Act. Tax liability to be determined u/s 35(6) & 74.
Case-Laws
GST
In light of the legal provisions and precedent, the Court held that even if excess stock is found during a survey, proceedings u/s 130 of the UPGST Act cannot be initiated. The proper course of action is to determine tax liability u/s 35(6) by following the procedure established u/s 74. Consequently, the impugned orders passed by the authorities

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GST refund claim filed within time limit as period from Mar'20-Feb'22 excluded based on GST Council's recommendations. Order set aside.
Case-Laws
GST
The petitioner's refund claim was within the limitation period prescribed u/s 53(3) of the CGST Act, as the period from March 2020 to February 2022 was excluded from the limitation period based on the GST Council's recommendations, which the respondent did not dispute. The impugned order was set aside, and the HC allowed the present petiti

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Court Directs Completion of GST Adjudication on E-Invoice Issue for Explosives Transfer in Four Weeks.
Case-Laws
GST
Petitioner challenged notices issued in Form GST MOV-01 and MOV-07 for not generating e-invoices during transfer of PETN explosives. Court held that petitioner undertook to pay penalty and did not assert goods were exempted. Exemption is a mixed question of fact and law to be examined by respondent. Since notices were issued and petitioner replied, adjudication process sh

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Court Remands GST Case for Fresh Order on Input Tax Credit Reversal Due to Non-Compliance with Discount Conditions.
Case-Laws
GST
Sub-section (3) of Section 15 of applicable GST statutes provides for reduction in value of supply on account of discount, if recorded in invoice or established by agreement before or at time of supply. Petitioner prima facie established neither requirement satisfied, hence supplier liable to pay tax on full value. Exercise of jurisdiction under Article 226 d

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Order quashed for lack of natural justice. Tax demand remanded. Petitioner to pay 10% & reply. Monitor GST portal.
Case-Laws
GST
Order quashed due to breach of principles of natural justice as petitioner was not heard before issuance of impugned order regarding tax demand arising from disparity between GSTR 3B and GSTR 2A returns. Matter remanded for reconsideration after petitioner remits 10% of disputed tax demand and submits reply to show cause notice within stipulated time. Petition

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High Court Rules Petition Maintainable Despite Alternative Remedy; Government and CBIC Issued Clarifications on Appeals.
Case-Laws
GST
Petition maintainable – alternative remedy available – order appealable – non-constitution of Tribunal – Government issued Removal of Difficulties Order and CBIC issued clarification regarding appeal due to non-constitution of Appellate Tribunal – HC disposed writ petition in interest of justice considering alternative remedy available.
TMI Updates –

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Ruling: KSTP status not covered. Govt contractor's road/bridge works for public use taxable 12% till 17.07.2022, 18% after. KSTP is Kerala PWD wing.
Case-Laws
GST
Advance Ruling held that the question regarding status of Kerala State Transport Project (KSTP) viz. Government Authority, Entity or Department is not covered u/s 97(2) of CGST Act, hence no ruling pronounced. Works contract services provided by Government contractor to KSTP for construction of roads and bridges for public use

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