Goods and Services Tax

Vanilla Ice Cream Mix Classified for Tax Duty Under Food Preparations, Not Dairy Produce.
Case-Laws
GST
The authority classified the product “Vanilla Mix” – dried softy ice cream mix (low fat) in vanilla flavour under Heading 2106 90 99 of the First Schedule to the Tariff Act, attracting tax at 9% CGST and 9% SGST. It held that the product, comprising several ingredients intended for making soft serves, does not fall under Heading 0404 as a dairy produce. As per Chapter Note 5, food pre

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Case-Laws – GST – Highlights – The authority classified the product “Vanilla Mix” – dried softy ice cream mix (low fat) in vanilla flavour under Heading 2106 90 99 of the First Schedule to the Tariff Act, attracting tax at 9% CGST and 9% SGST. It held that the product, comprising several ingredients intended for making soft serves, does not fall under Heading 0404 as a dairy produce. As per Chapter Note 5, food preparations subjected to further processing for human consumption are covered under Heading 2106, which includes powders for ice-creams, preparations consisting of milk powder, sugar and other added ingredients, and powders for table cream, jellies, ice-cream and similar preparations. – TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com – TMI – TaxTMI – TMITax

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Sewerage System Works to Local Authority Attracts GST Despite Entry 3B Exemption.
Case-Laws
GST
Composite supply involving works contract services provided to local authority not exempt under GST. Entry 3B of Notification No. 13/2017-CT(Rate) exempting services to government authority not applicable as applicant providing works contract services with supply of goods exceeding 25% value. Entries 3, 3A and 3B interlinked, exemption limited to pure services or composite supply with goods v

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Petitioner's tax recovery during investigation before notice illegal; refund ordered.
Case-Laws
GST
The High Court held that the petitioner's contention of not having the power to recover amounts during the pendency of an investigation that commenced prior to the issuance of a show cause notice u/ss 67 and 70 is valid. The payments made by the petitioner cannot be considered self-ascertainment u/s 74(5) of the CGST Act, as the element of voluntariness is absent. Since the adjudication i

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Blocking Credit Ledger Without Hearing Violates Natural Justice; Court Quashes Illegal Order, Cites Rule 86A Breach.
Case-Laws
GST
The court held that blocking of the Electronic Credit Ledger without providing a pre-decisional hearing to the petitioner and without containing cogent reasons to believe in the impugned order violated the principles of natural justice. Relying on the precedent of K-9-ENTERPRISES, KWALITY METALS, K-9-INDUSTRIES VERSUS THE STATE OF KARNATAKA, THE ASSISTANT CO

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Mastermind nabbed for Rs. 175 cr GST fraud via fake invoices; bail nixed due to economic offence & flight risk.
Case-Laws
GST
Bail cancellation case involving fraudulent input tax credit and creation of fake invoices under GST Act. Court found no procedural lapses by authorities in arrest as summons were issued, reasons recorded, and arrest memo provided. Accused was mastermind causing Rs. 175.88 crore tax evasion. Risk of fleeing abroad and tampering evidence if granted bail. Bail canc

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Waiver of interest/penalty u/s 128A: Eligibility, process, payment of full tax, erroneous demands, transitional credits.
Circulars
GST
Various aspects related to the waiver of interest or penalty or both u/s 128A of the CGST Act. It clarifies eligibility criteria, application process, payment requirements, processing of applications, issuance of orders, and appeals. Key points include the time period covered, payment of full tax amount (excluding certain amounts), treatment of erroneous

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CGST Act Update: Retroactive Input Tax Credit Deadline Extension & Special Rectification Procedure for 2017-21.
Circulars
GST
Sub-section (5) and sub-section (6) inserted in section 16 of CGST Act retrospectively extend the time limit to avail input tax credit in certain specified cases pertaining to financial years 2017-18 to 2020-21. No refund of tax paid or input tax credit reversed is available where now eligible under sub-section (5) or (6). A special procedure notified allows rect

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Attention – Hard – Locking of auto-populated values in GSTR-3B
GST
Dated:- 17-10-2024

In order to assist taxpayers in filing their returns and minimizing human errors, GSTN has continuously improved the GST return filing process and in this endeavor the GST Portal now provides a pre-filled GSTR-3B form, where the tax liability is auto-populated from the declared supplies in GSTR-1/ GSTR-1A/ IFF, while the Input Tax Credit (ITC) is auto-populated from GSTR-2B. A detailed system generated pdf of the auto populated GSTR-3B is also provided to all the taxpayers.
2.Now, taxpayers also have a facility to amend their incorrectly declared outward supplies in GSTR-1/IFF through GSTR-1A, allowing them an opportunity to correct their

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Petition Dismissed: No Natural Justice Violation in Detailed Show Cause Notice; Court Urges Response to SCNs First.
Case-Laws
GST
The court dismissed the petition, holding that there was no violation of principles of natural justice due to alleged vagueness in the show cause notice (SCN). The SCN was detailed, providing complete information about the case to be addressed. The petitioners' reply was thorough, and no serious grievance was raised regarding vagueness. The court cited Suprem

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Statutory remedy of appeal takes precedence over writ petition, court exercises discretion.
Case-Laws
GST
Petition maintainable but not entertainable due to availability of statutory remedy of appeal. Supreme Court held that merely because petition is maintainable, court not obligated to entertain it. Discretion lies with court. If petitioner failed to raise objections before authority, can do so in appeal memo before appellate authority. Petitioner unable to show palpable injustice if

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Tobacco-lime mixture undergoes manufacturing process, classifying it as “manufactured chewing tobacco” liable to 28% GST and 160% Compensation Cess.
Case-Laws
GST
Tobacco pre-mixed with lime undergoes a manufacturing process involving mixing of lime paste, evaporation of water content, and addition of aroma, menthol, and moisturizer, resulting in a new product distinct from raw tobacco leaves. This process transforms the raw material into a marketable/consumable product for chewing need

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Foreign company's guarantee to Indian subsidiary for loans triggers GST under reverse charge.
Case-Laws
GST
GST is payable under reverse charge mechanism on issuance of corporate guarantee without consideration by foreign group company to Indian subsidiary for loan taken from banks/financial institutions. The time of supply is the date of entry in books of Indian recipient. Prior to 26.10.2023, GST is payable at the time of execution based on valuation u/r 28(1). Post 26.10.2023, GST is

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Mining royalty payments to Rajasthan govt attract 18% GST under RCM; upfront amounts before lease also liable.
Case-Laws
GST
GST is applicable on mining lease payments, including royalty, payable to the Government of Rajasthan under reverse charge mechanism (RCM) at 18% (9% CGST and 9% SGST). The applicant is liable to pay GST on upfront payments made as per tender conditions before issuing Letter of Intent (LOI) and after issuing LOI but before entering into the lease agreement, under

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Unfair order issued without hearing, petitioner to pay costs & file reply for reconsideration within 8 weeks.
Case-Laws
GST
Principles of natural justice and fair play were violated when the impugned order was issued without granting the petitioner an opportunity for a hearing. Despite the delay in responding to the show cause notice, the petitioner should be allowed to file a reply and be heard, subject to paying costs of Rs. 50,000/-. The respondent must dispose of the show cause noti

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Tax demand order overturned for lack of due process, petitioner gets chance to reply.
Case-Laws
GST
The High Court set aside the impugned tax demand order due to violation of principles of natural justice, as the petitioner was not provided a reasonable opportunity to contest the tax demand on merits. The petitioner was unaware of the proceedings culminating in the order, which related to a mismatch between the petitioner's GSTR 3B returns and the auto-populated GSTR 2A. The court permi

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GST Liable on Indian Railways Charges: Applicant Not a Pure Agent, Must Pay GST on Various Fees and Charges Under CGST Rules.
Case-Laws
GST
The applicant is required to pay GST on the charges paid to Indian Railways for various services received, as the applicant is the recipient of these services from Indian Railways, and not a pure agent. The applicant has sub-contracted the task of paying these charges to the operator, who is required to pay the applicant along with GST as per their

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Important advisory for GSTR-9/9C
GST
Dated:- 15-10-2024

Starting FY 2023-24, GST system will auto-populate eligible ITC for domestic supplies (excluding reverse charge and imports ITC) from table 3(I) of GSTR-2B to table 8A of GSTR-9. These changes in GSTR-9 and 9C for the FY 2023-24 will be available on the GST portal from today i.e.,15th October 2024 onwards.
Further, a validation utility will be executed progressively (for validation by taxpayers) to complete the auto populatio

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Attention – Advisory on IMS
GST
Dated:- 15-10-2024

Invoice Management System (IMS) is made available to taxpayers from Today, 14th Oct, 2024. The new system shall facilitate taxpayers in matching their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). Taxpayers can make use of this system to take action on the invoices reflecting on IMS from 14th Oct, 2024. The first GSTR-2B would be generated for the return period Oct' 24 on 14th

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GST Circular: Lower Rate Payments Accepted as Full; No Refunds for Higher Rates Paid.
Circulars
GST
This circular clarifies the scope of regularization on an “as is” or “as is, where is” basis mentioned in previous GST circulars issued based on GST Council recommendations. It states that when genuine doubts arise due to competing entries with different rates or diverse interpretations, leading to some suppliers paying lower GST rates (including nil rates) and others paying higher rates,

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GST rates revised for snacks, AC units, car seats; effective prospectively.
Circulars
GST
This circular clarifies GST rates and classification for certain goods based on recommendations of the GST Council's 54th meeting. Key points: Extruded/expanded savoury snacks under HS 1905 90 30 attract 12% GST prospectively from 10.10.2024, previously 18%. Roof mounted air conditioning units for railways classified under HS 8415 attract 28% GST. Car seats under HS 9401 attract 28% GST prospective

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GST Updates: University Affiliation, Helicopter Transport, and Theatrical Rights Clarified Post-54th Council Meeting.
Circulars
GST
This circular clarifies various GST-related issues based on recommendations of the 54th GST Council meeting. Key points are: GST at 18% applicable on affiliation services by universities to colleges; affiliation services to schools by educational boards/councils taxable except for government schools which are exempt; DGCA-approved flying training courses by

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Clarification on Regularizing IGST Refunds for Exporters: Payments and Reassessments Align with Rule 96(10) WBGST Rules 2017.
Circulars
GST – States
This circular clarifies the regularization of refund of IGST availed in contravention of rule 96(10) of the WBGST Rules, 2017, where exporters had initially imported inputs without paying integrated taxes and compensation cess by availing benefits under certain notifications, but subsequently paid the IGST, compensation cess, and interest o

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Indian Data Hosting Services for Overseas Clients Deemed Export Under IGST; Recipient's Location is Place of Supply.
Circulars
GST – States
The circular clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. It addresses three scenarios: whether the service qualifies as an intermediary service u/s 2(13) of the IGST Act, whether it relates to goods made available by the recipient u/s 13(3)(a), or whether

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Trade Circular Clarifies ITC Eligibility for Demo Vehicles Used by Motor Dealers Under WBGST Act Provisions.
Circulars
GST – States
This trade circular clarifies the availability of input tax credit (ITC) on demo vehicles used by authorized dealers for motor vehicles. The key points are: ITC is available on demo vehicles used for promoting further supply of similar vehicles, as it falls under the exclusion in Section 17(5)(a)(A) of the WBGST Act. However, ITC is not available if demo ve

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