Goods and Services Tax

Non-edible neem oil falls under HSN 1515 90 20, not fertilizers. Remains neem oil despite chemical modification. No ITC refund allowed.
Case-Laws
GST
HSN code for non-edible neem oil is 1515 90 20, classified under Chapter 15, not Chapter 31 as fertilizer. The product remains neem oil in essential character despite chemical modification by adding solvents to reduce Azadirachtin content. As per Notification No. 09/2022-Central Tax (Rate), no refund of unutilized input tax credit is allow

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Voucher Sales Classified as Goods Supply, Taxed at 18% Under CGST and UPGST for Title Transfer Transactions.
Case-Laws
GST
The applicant purchases vouchers by paying consideration to the issuer and sells them to clients for consideration. The vouchers have value and ownership transferrable from issuer to applicant and then to ultimate beneficiary. No service element exists between issuer and applicant or applicant and purchaser. Vouchers qualify as movable property and goods. Actionable

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Goods detained on mere suspicion of tax evasion despite proper docs. Court: Authorities failed to prove intent (mens ria). Orders quashed.
Case-Laws
GST
Goods were detained based on assumptions that they were not on normal route and driver had mobile number of dealer in different district, despite accompanying documents being proper. Court held that authorities failed to establish intention to evade tax payment (mens ria). Since mens ria was absent, orders detaining goods were quashed.

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HC allows small biz to upload ITC certificate by condoning 2-day delay due to COVID-19 u/r 40(1)(b) after approval of composition scheme withdrawal.
Case-Laws
GST
The High Court directed the respondents to allow the petitioner, a small businessman, to upload the input tax credit certificate in the web portal by condoning the delay of 2 days in filing Form GST ITC-01 within the stipulated 30 days. The delay occurred due to the COVID-19 period, and the petitioner's application for withdra

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Plea to quash show-cause notice citing Rule 142 violation dismissed. Notices detailed tax liabilities, no breach of natural justice.
Case-Laws
GST
Summary in relevant legal terminology: Petitioner's plea to quash show-cause notice and corrigendum citing non-compliance with Rule 142 of GST Rules, 2017 was dismissed. Court observed that the notices clearly detailed tax liabilities, enabling petitioner to effectively contest facts. No violation of principles of natural justice occurred. Pe

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Petitioner's Writ Dismissed for Not Filing Objections Against Provisional Attachment Orders u/r 159(5) and Section 83.
Case-Laws
GST
Provisional orders of attachment issued u/s 83 can be challenged by filing objection u/r 159(5). Petitioner did not file objection. Respondents issued fresh provisional attachment orders as notices u/s 74 could not be served on petitioner, who prima facie avoided service. Provisional attachment orders, though drastic, are permissible to protect revenue int

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Petitioner failed to pass on GST rate cut benefits to viewers by not reducing ticket prices until 11.03.2019, violating Section 171.
Case-Laws
GST
The High Court held that the petitioner's failure to pass on the benefits of GST rate reduction from 01.01.2019 to the viewers by reducing ticket prices until 11.03.2019 constituted a default. Section 171 of the CGST Act mandates that suppliers pass on the benefit of tax rate reduction to end-users by reducing prices commensurately. Although

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GST Registration Cancellation Doesn't Erase Tax Obligations; Audit Validity u/s 65 Confirmed; Petition Dismissed with Costs.
Case-Laws
GST
Section 29(3) of CGST Act mandates that cancellation of GST registration does not affect liability to pay tax and other dues. Section 65(1) authorizes audit of any registered person. Petitioner was registered during audit period and show cause notice u/s 73 was issued after audit. Proceedings valid as “registered person” u/s 65 includes those registe

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Order cancelling registration quashed for lack of reasons. Matter remanded to provide reasons within 2 weeks. Appellate order set aside.
Case-Laws
GST
Order cancelling petitioner's registration quashed as it violated principles of natural justice by not assigning reasons. Matter remanded to Assessing Officer to provide detailed reasons for cancellation within two weeks. Appellate Authority's order dismissing appeals also set aside as revisional power under GST Act section 108 cannot be

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GST rates: Solar cookers 12%, fire sprinklers 12%, poultry machinery parts 12%. Farm produce >25kg/L exempt. Pulses/cereals for weaker sections regularized.
Circulars
GST
Circular clarifies GST rates and classification of goods based on GST Council recommendations in its 53rd meeting. Solar cookers working on dual energy attract 12% GST. Fire water sprinklers attract 12% GST. Parts of poultry-keeping machinery attract 12% GST. Agricultural farm produce in packages over 25kg/25L excluded

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GST Clarifications: Railway, Real Estate, and Banking Exemptions; Reinsurance and Accommodation Tax Updates.
Circulars
GST
Clarifications issued regarding applicability of GST on certain services including exemption for Ministry of Railways (Indian Railways) supplies to public and inter-zone/division supplies; exemption for transactions between Special Purpose Vehicles (SPVs) and Ministry of Railways; statutory collections by Real Estate Regulatory Authority (RERA) covered under GST exe

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Rule 86A empowers restricting fraudulent ITC debit for liabilities/refunds. Restriction ceases after 1 year by law.
Case-Laws
GST
The court held that Rule 86A empowers the Commissioner or authorized officer to restrict debit of fraudulently availed or ineligible Input Tax Credit (ITC) from the electronic credit ledger for discharge of liabilities or refund claims, subject to recording reasons in writing. Sub-rule (3) mandates that such restriction shall cease after one year from imposit

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Arbitral award upheld; GST implementation envisaged; tax incentives conditional; estoppel claim rejected. Secure awarded amount.
Case-Laws
GST
Impugned award unaffected by fraud or corruption; Arbitral Tribunal considered materials and submissions; no case made out regarding fraud in passing award. Parties contemplated GST implementation in Share Purchase Agreement; incentives payable only to extent tax accrued to State Government. Withdrawal of exemption notification pursuant to statut

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Petitioner's Registration Canceled for Alleged Fraud; Case Remanded for Reconsideration and Hearing Opportunity by Proper Officer.
Case-Laws
GST
Cancellation of petitioner's registration due to alleged fraud, willful misstatement, or suppression of facts in obtaining registration. Proper Officer issued show cause notice, but petitioner claimed non-disclosure of basis. Proper Officer clarified and provided documents. Petitioner filed response, but Proper Officer canceled registration on

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Eligible for ITC on capital goods like wires/cables for electricity transmission from power station to factory premises, not fixed to earth.
Case-Laws
GST
Applicant eligible to avail Input Tax Credit (ITC) on capital goods like wires/cables, electrical equipment used for transmission of electricity from power station to factory premises, installed outside factory as per rules/policy. Conditions u/s 16 fulfilled. Not hit by Section 17(5)(c) and (d) as goods not fixed to earth, can be rem

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Nominal deduction from salaries for factory canteen facility is not 'supply' u/s 7 of CGST Act. ITC available on GST charged by Canteen Service Provider.
Case-Laws
GST
Deduction of nominal amount from employees' salaries for availing food facility in factory premises is not considered 'supply' u/s 7 of CGST Act, as per Circular No. 172/04/2022-GST. Input Tax Credit is available to applicant for GST charged by Canteen Service Provider, restricted to cost borne by applicant, as canteen fa

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Turnkey contract = composite supply, GST payable on advances. Not divisible despite two parts. Notification 66/2017-CT inapplicable.
Case-Laws
GST
The turnkey contract entered by the applicant with PGVCL is a works contract as defined u/s 2(119), involving a composite supply for installation, testing, and commissioning of 11 KV medium voltage covered conductor (MVCC) with accessories. The contract is not divisible, despite constituting two interconnected and interdependent parts. GST is

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Coal Transport in Mining Now Classified as Vehicle Rental; GST Reduced from 18% to 12% Since July 2022.
Case-Laws
GST
The transportation of coal (minerals) within a mining area, such as from the mining pit head or coal stockyard to the railway siding or beneficiation plant, for a specified period and at an agreed price, is classified under SAC 9966, i.e., Renting of Transport Vehicles. The service of transporting minerals within a mining area by vehicles deployed with drivers is conside

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Electricity Transmission Services Taxed at 9%; No GST Exemption, ITC Allowed With Reversal for Business Use.
Case-Laws
GST
The deposit work undertaken by the applicant and 6% supervision charges received for supervision and monitoring of deposit work related to transmission or distribution of electricity do not qualify for exemption under Entry 25 of N/N. 12/2017-CT (R) dated 28.06.2027 issued under GST Laws, as they are ancillary/incidental to the principal supply of transmission or di

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Integrated Services from NIC-IRP e-invoice-1 and e-invoice-2 Portals
GST
Dated:- 17-7-2024

GSTN wish to inform that NIC is releasing the integrated services from e-invoice-1 and e-invoice-2 portals on 18th July 2024 on sandbox portals and 1st Aug 2024 on the production portals. These portals run in parallel and now allow for seamlessly inter-operations. The highlights of the portal are as follows:
(https://einvoice1.gst.gov.in and https://einvoice2.gst.gov.in)
i. Both the portals (NIC-IRP 1 & 2) provide the web and API modes for e-invoice related services.
ii. The taxpayers can use the same login credentials to operate e-invoice1 and e-invoice-2 portals.
iii. In case of API, the same token can be used for the services o

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Refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports
GST
Dated:- 17-7-2024

1. GST Council has approved that application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports may also be processed by Tax Administration. Accordingly, Notification No. 12/2024-Central Tax dt. 10th July, 2024 has also been issued. GSTN is in the process of development of a separate category of refund application in FORM GST RFD-01, for filing an application of refund of additional IGST paid on account of upward revision in prices of goods subsequent to exports.
2. However, till the time such separate category for claiming refund of additional amount

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Unsigned order & notice quashed for lack of digital/physical signature as per Rule 26 CGST Rules & TGST Act.
Case-Laws
GST
Impugned order and show cause notice quashed due to lack of digital or physical signature by issuing authority as mandated by Rule 26 of CGST Rules and TGST Act and Rules. Unsigned documents rendered ineffective. However, respondents' right reserved to initiate appropriate proceedings in accordance with applicable laws.
TMI Updates – Highlights, quick notes, mar

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Section 169: Decisions, Orders, and Notices Can Be Served via Common Portal; Appeal Dismissed Due to Delayed Access Claim.
Case-Laws
GST
A reading of Section 169 of the Act makes it clear that any decision, order, summons, notice or other communication under the Act or Rules may be served on the assessee by making it available on the common portal. This statutory provision has to be read along with Section 146, which means that once a common portal is notified for the Act's purposes, ac

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Defective notice sans details invalidated registration cancellation. High Court upheld natural justice principles.
Case-Laws
GST
Defective show cause notice lacking minimum details to establish adverse material received post specified date. Cancellation of registration and order-in-original set aside by High Court due to violation of principles of natural justice. Petition disposed, allowing opportunity for issuance of appropriate show cause notice to meet ends of justice.
TMI Updat

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Order set aside on interest liability. Interest based on 700 days delay. Pay admitted interest in 15 days.
Case-Laws
GST
Impugned order set aside regarding interest liability; petitioner to d

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