Goods and Services Tax

Court Dismisses ITC Claim on Construction Goods; Fact-Finding Required to Determine Eligibility as 'Plant'.
Case-Laws
GST
The case pertains to the validity of input tax credit (ITC) availed on construction goods for a building leased to an educational institution. The Supreme Court held that each case involving malls or buildings must undergo a fact-finding inquiry to determine if it satisfies the functionality test of being a 'plant' u/s 17(5)(d). If the building qualifies as a plant,

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State GST Demand Quashed for Lack of Jurisdiction; Petitioner Must Address Central GST Notice on Manpower Services 2017-2022.
Case-Laws
GST
Challenge to the State GST authorities demanding input tax credit availed by the petitioner along with interest and penalty for IGST paid on manpower supply services received during 2017-2022. It holds that the impugned show cause notices issued by the State GST authorities are illegal, arbitrary, and without jurisdiction, as the Central GST authori

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Penalty for Expired E-way Bill Reduced; No Tax Evasion Intent Found, Rs. 10,000 Fine Imposed Instead of Maximum Penalty.
Case-Laws
GST
Levy of penalties u/ss 122 and 129 of CGST/SGST Acts – expiry of e-way bill – mens rea in penalty imposition. Technically, violation of law by petitioner in transporting goods without revalidating e-way bill. However, once plausible explanation provided by transporter/assessee and no attempt to evade tax found, proceedings should not culminate in maximum

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Taxpayer's GST demand order set aside due to consultant's non-communication, to be reconsidered after remitting 10% disputed tax.
Case-Laws
GST
Breach of principles of natural justice occurred as the petitioner was unaware of proceedings due to non-communication by the consultant entrusted with GST compliances, resulting in an order confirming tax demand due to non-response. Considering the petitioner's inability to participate, an opportunity should be provided to contest the demand on

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Tax Demand Order Overturned Due to Improper Notice Service; Petitioner Can Contest After Partial Payment.
Case-Laws
GST
Breach of principles of natural justice occurred due to lack of proper service of show cause notice (SCN). The impugned order and preceding notices were uploaded on the GST portal but not communicated through other modes. There was a mismatch between the petitioner's GSTR 3B returns and auto-populated GSTR 2A. The High Court held that since the petitioner could not par

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GST Exemption Removed for Consultancy Services to Maharashtra Jeevan Pradhikaran Post-Jan 2022; 18% GST Applies.
Case-Laws
GST
Rate of tax applicable on services provided by the applicant to Maharashtra Jeevan Pradhikaran (MJP) as part of the Jal Jeevan Mission, a Government of India mission. The services are classified as “Technical Consultancy for Project Development and Management support services” under SAC code 998399, attracting 18% GST (9% CGST & 9% SGST), unless exempted. For se

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Delay in filing GST appeal not condoned beyond statutory limitation period.
Case-Laws
GST
The court dismissed the appeal filed by the petitioner on the ground of limitation. The petitioner relied on a notification dated 02.11.2023, which allowed appeals against orders u/ss 73 or 74 of the GST Act passed before 31.03.2023 to be filed by 31.01.2024 without being time-barred. However, the impugned order in the present case was passed on 20.07.2023, after the cut-off date mentioned in the n

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Court Quashes Order Blocking Electronic Credit Ledger Due to Lack of Hearing and Justification, Upholds Fair Process.
Case-Laws
GST
Constitutional validity of Rule 86A of the CGST/SGST Rules, 2017, which was challenged for violating Articles 14 and 19(1)(g) of the Constitution of India. The court held that since no pre-decisional hearing was granted before passing the impugned order blocking the petitioner's electronic credit ledger, and the order lacked independent or cogent reasons ex

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Time limit extension for tax assessments upheld; GST Council's Covid recommendations justified.
Case-Laws
GST
The High Court held that the Notification No. 9/2023 dated 31-03-2023, extending the time limit u/s 168A of the CGST Act, was valid and cannot be faulted. The explanation to Section 168A empowers the Government to extend time limits on the recommendation of the GST Council. The Council's decision was based on representations, increased workload due to Covid-19, and the inability

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Appeal Decided Ex-Parte, Violating Natural Justice; Case Remitted for Fresh Hearing Within Three Months.
Case-Laws
GST
The appellate authority erred in deciding the appeal ex-parte in the absence of the appellant or their counsel. The statutory mandate requires the appellate authority to hear the appellant, conduct further inquiry if necessary, and pass a reasoned order confirming, modifying, or annulling the decision appealed against. Deciding the case ex-parte without giving a reasona

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Court Declares Bank Guarantee for Bail Illegal, Encourages Other Valid Conditions Instead.
Case-Laws
GST
The Court held that imposing a condition of furnishing a bank guarantee while granting bail is illegal. The Apex Court, in Subhash Chouhan v. Union of India, ruled that directing the appellant to deposit a sum as a condition for bail is not sustainable and should be set aside. The Court observed that it encounters numerous cases where Courts impose an illegal condition of furnishing

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Amnesty for late GSTR-9C filing till 01.04.2023, no late fees if filed by 31.08.2023.
Case-Laws
GST
Amnesty scheme – Failure to file annual returns from financial year 2018-2019 till 01.04.2023, but filed before 31.08.2023. Justification for continuing notices for non-payment of late fees for belated GSTR-9C filed before 01.04.2023. Court held, relying on Anishia Chandrakanth v. Superintendent judgment, no justification for continuing notices for non-payment of late fees for belated GST

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Transitional GST credit allowed after rectification of TRAN-1/TRAN-2 forms.
Case-Laws
GST
Rule 117(4)(b)(iii) of the CGST Rules was challenged as ultra vires Section 140(3) of the CGST Act and violative of Article 14 of the Constitution. The court held that the petitioner has the right to avail transitional credit legally due, and the authorities should permit rectification of TRAN-1/TRAN-2 by making necessary software changes. The respondents were directed to allow the petitioner to fi

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Advisory – Reg 07
GST
Dated:- 22-10-2024

Dear Taxpayer,
GSTN has introduced an update to facilitate the registration compliance for buyers of metal scrap through form GST REG-07. This update follows the new GST provisions for metal scrap buyers as outlined in the advisory issued on October 13.
Taxpayers in this category are required to select "Others" in Part B of Table 2 under the "Constitution of Business" section. A text box will appear where the taxpayer m

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Attention: Validation of bank account details while adding bank account as non core amendment
GST
Dated:- 22-10-2024

Dear Taxpayer,
GSTN has implemented a validation process for cases where a taxpayer attempts a non-core amendment to update bank account details. Taxpayers are requested to follow the procedure outlined below while adding bank account details on the portal.
(I) When the bank account details are entered, the taxpayer is required to click on “VALIDATE ACCOUNT DETAIL

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Court Allows Late Amendment of GSTR-1 for Export Invoice Errors, Emphasizing Fair Credit for Taxpayers.
Case-Laws
GST
The High Court allowed the petitioner to rectify GSTR-1 for the months of October and November 2022 regarding five export invoices, despite the statutory time limit having expired. The court noted the petitioner's claim of genuine mistake and the fact that the error came to light before the deadline for correcting GSTR-1 u/s 37(3) of the GST Act. However, the petitioner

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Denial of input tax credit if tax not paid to government upheld.
Case-Laws
GST
Section 16(2)(c) of the Central/State Goods and Services Tax Act, 2017, denies input tax credit if the tax charged has not been deposited with the government. The High Court upheld this provision, stating that input tax credit is a conditional right and cannot be availed unless the tax collected has actually been paid to the exchequer. The Court relied on its previous decision in Nahasshukoor v. Assistant Com

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Taxpayer gets stay on tax recovery due to State's delay in constituting Tribunal.
Case-Laws
GST
Petition filed under Article 226 challenging non-constitution of Tribunal and seeking stay on recovery of tax. State authorities acknowledged non-constitution and issued notification providing limitation period for appeal before Tribunal shall commence only after President/State President assumes office. Held, subject to deposit of 20% of remaining disputed tax amount, petitioner entitled to

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Error in GST filing corrected to claim ITC; court orders manual form rectification.
Case-Laws
GST
Rectification of GST Return filed incorrectly as B2C instead of B2B for the periods 2020-21 and 2021-22 was permitted to enable the petitioner to claim Input Tax Credit (ITC) benefit. The court held that allowing rectification would not cause any tax loss, and denying it would unnecessarily prejudice the petitioner. Relying on a Madras High Court precedent, the court directed the respondent

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Validity of parallel proceedings by State & Central Authorities under GST Laws.
Case-Laws
GST
Proceedings initiated by State Authority u/s 74 are valid even if Central Authority has already initiated proceedings. The term 'initiation of proceedings' refers to issuance of notice under CGST/SGST Acts, not issuance of summons u/s 70 for inquiry. The Patna High Court's judgment in Baibhaw Construction did not consider this aspect. Therefore, the petitions lack merit and are dismissed.
T

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Airport duty-free shops can claim GST refunds on services from operators as goods sale is zero-rated.
Case-Laws
GST
Duty Free Shops at international airports are entitled to claim Input Tax Credit and refund of GST paid on services provided by airport operators, as the sale of goods at these shops is a zero-rated supply. The levy of GST on such services is a revenue-neutral exercise. Petitioners directed to reimburse Rs. 6,11,084 to airport operators within four weeks, along with 8% int

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Truck detained over incorrect interest calculation; Court orders release on bank guarantee deposit.
Case-Laws
GST
The court held that the quantification of interest in the detention order dated 20.07.2024 was contrary to the statutory mandate of Sub-Section 3 of Section 129. The petitioner agreed to deposit a bank guarantee of the original amount of Rs. 8,40,924/-. Subject to depositing the bank guarantee, the petitioner's truck and material would be released after obtaining photographs

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Works contract service for laying sewage systems attracts 18% GST for local authority.
Case-Laws
GST
The applicant provides works contract services involving supply of goods and services for an immovable property to Bikaner Nagar Nigam, a local authority. Entry 3B of Notification No. 13/2017-CT (Rate) dated 28.06.2017 is not applicable as entries 3 and 3A cover services provided to local authorities. The applicant is liable to pay 18% GST (CGST 9% and SGST 9%) for providing services lik

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Restoring GST number, filing returns, tax payment in 7 days to avoid order lapse. High Court grants relief in delaying appeal filing.
Case-Laws
GST
The High Court directed the petitioner to approach the Competent Authority for GST registration within seven days. The Authority shall restore the petitioner's GST number upon completing requisite formalities. The petitioner must file returns, deposit taxes, penalty, and interest within seven days. Failure to comply will render the order ino

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Court Grants Injunction in Tax Case; Printing Educational Books Ruled as Supply of Goods by State Authorities.
Case-Laws
GST
The court observed that the show cause notice did not specifically allege wrongful availment or short payment of tax due to fraud, willful misstatement, or suppression of facts to evade tax. Advance ruling authorities in Karnataka, West Bengal, and Chhattisgarh have held that printing books by publishers, where content is provided by educational boards like NCERT,

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