Goods and Services Tax

Mismatch between GSTR-3B & 2A; Court accepts error, sets aside assessments for 2017-18 to 2020-21 for reconsideration on 10% payment.
Case-Laws
GST
Petitioner challenged impugned orders, recovery notices and bank attachment notice due to mismatch between GSTR-3B and GSTR-2A. Court accepted petitioner's contention of error in filing GSTR-3B, supported by certificate. Considering respondent's submission, Court set aside four assessment orders for 2017-18 to 2020-21, remanding matters to S

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High Court validates using Electronic Credit Ledger for pre-deposit payment under GST appeals.
Case-Laws
GST
The High Court quashed the impugned letter directing payment of pre-deposit through Electronic Cash Ledger, holding that utilizing the Electronic Credit Ledger for pre-deposit payment u/s 107(6)(b) of the CGST Act is valid. The court ordered the petitioner's appeal to be heard on merits, considering the pre-deposit payment from the Electronic Credit Ledger as sufficient complianc

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Improper tax demand without fair hearing opportunity. Petitioner rectified excess input tax credit claimed.
Case-Laws
GST
Non-application of mind by respondent and violation of principles of natural justice. Petitioner unable to file immediate reply due to authorized person's illness. Excess ITC availed rectified/reversed in subsequent monthly returns and GSTR-3B filed. Respondent passed impugned orders for tax liability, penalty, and interest without considering rectification. Petition

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Petitioner's right to reply and hearing denied, violating natural justice; court sets aside order, demands fair reconsideration.
Case-Laws
GST
Violation of principles of natural justice occurred as the valuable right of the petitioner to defend through a reply and right to personal hearing was denied. The finding that the petitioner failed to submit a reply is factually incorrect as the reply was received by the respondents, evident from the portal recording “Reply furnished, pending fo

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Court Orders Refund of Pre-Deposit for Input Tax Credit in Tamil Nadu VAT Case; Freight Charges Excluded from Taxable Value.
Case-Laws
GST
The petitioner's denial of refund of input tax credit debited as a pre-deposit was challenged. The court held that the non-inclusion of freight and pumping charges collected by the petitioner from customers into the taxable value of Ready Mix Concrete (RMC) supplied cannot be grounds for denying refund. The pre-deposit amount debited in returns for t

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Clerical error in GSTR-1 filing, rectification ordered; authorities to consider revised representation expeditiously.
Case-Laws
GST
The petitioner was directed to resubmit the representation to rectify the clerical mistake of wrongly filing details under Column B2C instead of Column B2B in the GSTR-1. The respondents were instructed to consider the revised representation and pass appropriate orders on merits expeditiously, preferably within three months, strictly following Circular No.

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Non-speaking order on ITC mismatch and GST return discrepancies set aside, remanded for fresh hearing.
Case-Laws
GST
The High Court found the order passed by the authority to be violative of principles of natural justice as it was a non-speaking order that failed to address the objections raised by the petitioner. The issues involved input tax credit mismatch between GSTR-3B and GSTR-2A/GSTR-5, and discrepancies between GSTR-1 and e-way bill outward supplies. The impugned order was set

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Unblocking ITC & revocation of GST registration suspension: Taxpayer's relief through legal remedy.
Case-Laws
GST
In this legal case, the court addressed the issue of unblocking Input Tax Credit (ITC) and revocation of suspension of registration. The court granted liberty to the petitioner to make a representation to the concerned authority regarding the Input Tax Credit that was blocked due to suspension of registration. If such a representation is filed, the authority must pass an app

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Barring of GST Return on expiry of three years
GST
Dated:- 29-10-2024

As per the Finance Act, 2023 (8 of 2023), dt. 31-03-2023, implemented w.e.f 01-10-2023 vide Notification No. 28/2023 – Central Tax dated 31th July, 2023, the taxpayers shall not be allowed file their GST returns after the expiry of a period of three years from the due date of furnishing the said return under Section 37 ( Outward Supply), Section 39 (payment of liability), Section 44 ( Annual Return) and Section 5

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Secondment of employees and expats: No invoicing, no tax liability – Circular prevails.
Case-Laws
GST
In cases involving secondment of employees and placement of foreign expatriates to assist functions, the value ascribed to supply of goods and services is regulated by Rule 28 of Central Goods and Services Tax Rules, 2017. Despite payments made, no invoices were raised by entities for services provided by related foreign entities. The Circular's stance treating value as 'Nil' in such ca

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Bail Denied in Fraud Case Involving Fake GST Firms and Unauthorized Use of PAN, Aadhaar; Economic Impact Cited.
Case-Laws
GST
Economic offenses involving large-scale fraud, money laundering, and corruption are viewed seriously as they affect the economic fabric of society. The present case relates to registration of fake GST firms using the informant's PAN and Aadhaar cards without consent, resulting in illegal profits through fund transfers to other accounts, creating a money trail of

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Bail Denied in Major Economic Crime Case Involving Fraud, Money Laundering, and Fake Firm Registrations.
Case-Laws
GST
Economic offences involving large-scale fraud, money laundering, and corruption are viewed seriously as they impact the economic fabric of society. Bail may be denied in such cases, especially if the accused holds a position of influence or power. This case involves a money trail of crores resulting from the registration of fake firms using Aadhaar and PAN cards, affect

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Failed prosecution against company MD for alleged tax evasion; no active role found. Court allows probe sans coercive steps for 6 weeks.
Case-Laws
GST
Petition challenging initiation of criminal proceedings against petitioner, Managing Director of a company, for alleged tax evasion by misrepresenting vehicle ownership to evade motor vehicle tax. Court observed petitioner not directly involved in alleged forgery or alteration of documents by educational society. Petitioner having fixed a

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Vouchers as Movable Property: GST Applied to Trading and Facilitation of Vouchers as Goods and Services.
Case-Laws
GST
Vouchers are instruments representing value that facilitate supply of goods or services. They qualify as movable property and constitute 'goods' under GST laws. Trading in vouchers for consideration amounts to supply of goods u/s 7(1)(a) of CGST Act. When vouchers represent right to receive goods/services at future date without physical exchange, trading activity involv

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Appellate authority denied fair hearing by dismissing appeal for signatory defect without allowing rectification.
Case-Laws
GST
Appellate authority erred in dismissing appeal solely on ground of lack of authorisation of signatory, without affording opportunity to establish authorisation or provide resolution conferring necessary powers. Such denial violates principles of natural justice, fair play, and unduly burdens court's docket. Impugned order set aside, appeal restored for fresh co

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Penalty quashed for GST violation due to denial of natural justice by ignoring hearing request.
Case-Laws
GST
Order quashing penalty levied u/s 130 of GST Act due to violation of principles of natural justice. Authority failed to address petitioner's request for personal hearing beyond specified date, thereby passing order without considering petitioner's prayer. Once a request for alternate hearing date was made, authority was obligated to either grant or decline it explicitly. Failure

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High Court dismisses writ against tax order due to failure to file appeal within time limit.
Case-Laws
GST
The High Court dismissed the writ petition filed by the petitioner challenging the validity of the order determining the amount of tax u/s 74 of the U.P. G.S.T. Act, 2016. The court observed that a coordinate bench had previously directed the petitioner to avail the remedy of appeal within the limitation period from the date of the order. However, the petitioner failed to file the

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Tax evasion suspected due to excess stock found in survey, proceedings initiated under GST Act sections 73/74.
Case-Laws
GST
Excess stock found during survey triggers proceedings u/ss 73/74 of the GST Act, not Section 130. The authority noted excess stock by eye estimation without physical verification or video recording. The High Court held that if excess stock is found, proceedings u/ss 73/74 should be initiated, not Section 130 read with Rule 120. The impugned orders initiating proce

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Uttar Pradesh GST order quashed for denying personal hearing, violating natural justice.
Case-Laws
GST
Order challenged u/s 74(9) of the Uttar Pradesh Goods and Services Tax Act, 2017 quashed due to denial of opportunity for personal hearing, violating principles of natural justice. Relying on coordinate Bench judgment in Mahaveer Trading Company case, where impugned order was held unsustainable for being passed in gross violation of fundamental principles of natural justice. Factual ma

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Court Overturns Tax Order Due to Lack of Notice Visibility, Grants Petitioner Benefit of Doubt.
Case-Laws
GST
The court allowed the writ petition filed by the petitioner, quashing the impugned order dated 23.04.2024 passed by the Assistant Commissioner, State Tax, Sector-16, Kanpur Nagar. The petitioner was unaware of the issuance of the reminder and the passing of the orders, and could not appear before the authority or question the validity of the orders within the limitation period.

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Chemicals like soda ash, epsom salt taxed at 8%, not covered under dyes/chemicals entry.
Case-Laws
GST
Sodium Bicarbonate (Soda Ash) and Magnesium Sulphate (Epsom Salt) are not enumerated in Entry-9 of the VI Schedule, which covers dyes and chemicals. A Government Order directs a levy of 8% sales tax on all chemicals not covered under Entry-9. In a similar case, the erstwhile High Court of Judicature, Andhra Pradesh held that any chemical not enumerated in Entry-9 would fall under the G

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Retrospective amendment on time limit for GST appeals clarified; Gujarat & Karnataka HCs applied it. Delayed appeal rejection quashed.
Case-Laws
GST
Amendment to Rule 108(3) of Central Goods and Services Tax Rules, 2017 regarding time limitation for filing appeals u/s 107 is clarificatory in nature with retrospective effect. Gujarat and Karnataka High Courts have considered retrospective application. Impugned order rejecting appeal on grounds of delay quashed, matter remitted to appella

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High Court Challenges GST Registration Cancellation for Late Filings; Urges Better Support for Small Traders.
Case-Laws
GST
The High Court addressed the issue of cancellation of GST registration due to non-filing of returns and the rejection of an appeal on the ground of time limitation. The respondent claimed that the statute prescribes a specific limitation period of 90 days to file an appeal, and the petitioner's appeal was time-barred. The Court held that no useful purpose would be

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Fat-laden food product classified as vegetable oil preparation, not margarine. Attracts 5% GST rate.
Case-Laws
GST
The food product containing 22.94% fat cannot be classified as Margarine under chapter heading 1517 10 as per Food Safety and Standards Regulations, 2011 which requires fat content not less than 80% mass/mass for Margarine. The product is a preparation of vegetable fat specifically covered under 1517 90 90, not under residuary chapter heading 2106. Since it is a preparation

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Ruling voided for non-disclosure of ongoing proceedings on same issue.
Case-Laws
GST
The applicant had suppressed material facts from the Authority for Advance Ruling by mis-declaring that the issue was not pending in any other proceedings, when in fact, proceedings on the same issue had already commenced by the DGGI. Upon being informed of this by the Appellant, the Authority for Advance Ruling declared the Ruling void ab initio u/s 104 of the Act. Consequently, the appeal filed by the

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