Goods and Services Tax

New Rule 28(2) CGST: Corporate Guarantees Valued at 1% Annually or Actual Consideration; ITC Available; GST on New Guarantees Only.
Circulars
GST
Sub-rule (2) of Rule 28 of CGST Rules provides for valuation of supply of services of providing corporate guarantee between related persons. It applies to guarantees issued/renewed on or after 26.10.2023. Value is 1% of guaranteed amount per annum or actual consideration, whichever is higher. ITC is available irrespective of loan disbursal. No

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Guidelines for Taxpayers: Secure Stay on Recovery by Pre-Deposit Amid Appellate Tribunal Non-Operation; Use DRC-03A for Adjustments.
Circulars
GST
Guidelines clarify recovery proceedings in cases where first appeal is disposed but taxpayer cannot file further appeal due to non-operation of Appellate Tribunal. Taxpayers can make pre-deposit payment through Electronic Liability Register to avail stay on recovery. Undertaking to file appeal when Tribunal operationalizes is required. Amount

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Jailed petitioner's registration cancelled sans response opportunity. HC revoked cancellation order subject to tax compliance.
Case-Laws
GST
Petitioner was in jail custody from February 3, 2022, to July 30, 2023. Show-cause for cancellation of registration was issued on July 27, 2023, and order of cancellation was passed on August 23, 2022, without petitioner's opportunity to respond or apply for revocation. Petitioner was released on July 20, 2023, after acquittal and preferred an appe

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Provisional attachment order challenged for exceeding 1-year limit. Court upheld mandatory time limit, quashing order dated 19.05.2023.
Case-Laws
GST
Provisional attachment order u/s 83 of CGST Act challenged for completion of one year's period. Court held that Section 83 employs mandatory language, and impugned provisional attachment order dated 19.05.2023 ceased to have effect upon expiry of one year period from issuance date, i.e., 19.05.2023. Petition disposed of.
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Supreme Court Rules Writ Petition Maintainable in Limited Cases Despite Alternative Remedies Under CGST/APGST Act, 2017.
Case-Laws
GST
Maintainability of petition discussed – availability of alternative remedy considered – cancellation of registration under CGST/APGST Act, 2017 – alleged violation of principles of natural justice – Supreme Court held writ petition maintainable in contingencies like enforcement of fundamental rights, violation of natural justice, proceedings without juri

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E-way Bill: Typographical error not indicative of tax evasion intent. Active GSTIN, residential address not adverse. Penalty quashed for lack of evidence.
Case-Laws
GST
Petitioner challenged order passed u/s 129(3) of Goods and Services Tax Act, 2017 for alleged tax evasion due to typographical error in date on E-way Bill and Tax Invoice. Court held typographical error was bona fide, not indicative of mens rea to evade tax, essential for imposing penalty. Selling dealer had active GSTIN

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Central Board extends appeal deadline under BGST Act; Section 5 Limitation Act applicable for delay condonation. Article 226 limits noted.
Case-Laws
GST
Condonation of delay in filing appeal is governed by Section 5 of Limitation Act. When special statute provides period for initiating proceeding and authority to condone delay without specifying time limit, Section 5 applies. Central Board of Indirect Taxes and Customs extended time for filing appeal against certain orders under BGST Ac

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Court Dismisses Writ Petitions; Petitioner Advised to Appeal u/s 107 of TNGST Act, 2017 Within 30 Days.
Case-Laws
GST
Jurisdiction to issue show cause notice (SCN) for levy of interest and penalty was challenged. Court held that writ petitions challenging impugned orders under Article 226 of Constitution lack merit. Petitioner must file statutory appeal u/s 107 of TNGST Act, 2017. Writ petitions dismissed with liberty to file statutory appeal within 30 days from receipt of order. Pre-de

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HC upheld delegation appointing proper Officers under TNGST Act. Impugned orders' validity on improper show cause notice left open for Appellate Authority.
Case-Laws
GST
The HC held that the assessment has to be completed by a proper Officer and the Commissioner can designate such Officers as defined in Section 2(91) of the TNGST Act, therefore, the delegation appointing proper Officers is valid. Regarding the challenge to impugned orders on the ground of improper show cause notice, the

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GST assessment order set aside, fresh order after reconciling GSTR discrepancies; 10% tax deposit within 30 days.
Case-Laws
GST
Petition challenging assessment order set aside; case remanded to pass fresh order after considering discrepancies between GSTR-1, GSTR-3B, GSTR-2A/GSTR-9; petitioner directed to deposit 10% of balance tax amount within 30 days; earlier dropped amount confirmed indicating non-application of mind.
TMI Updates – Highlights, quick notes, marquee, annotation, n

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Court Quashes Bank Account Attachment; Petitioner Gets 30 Days to Respond to SCN u/s 73(8.
Case-Laws
GST
Writ petition challenging show cause notice (SCN) and adjudication order attaching petitioner's bank account. SCN not uploaded in “view notices and orders” section of portal, violating principles of natural justice. Court held petitioner entitled to 30 days to respond to SCN u/s 73(8) of Act. Though SCN uploaded in “view additional notices and orders” section, confusion in identifyin

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GST registration can't be cancelled for non-response to show cause notice. Allow response on principal place allegation & details of operations.
Case-Laws
GST
The High Court held that the petitioner's GST Registration should not be cancelled solely on the ground of non-response to the show cause notice. The petitioner must be allowed to file a response regarding the allegation of non-existence at its principal place of business. The petitioner can provide details on when it ceased opera

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SCN issued sans reasons for registration cancellation. Authorities lauded for natural justice compliance. Directed to follow HC's 2022 directives.
Case-Laws
GST
SCN issued for cancellation of registration without detailed reasons. Held: Respondent authorities' approach commendable for complying with natural justice by giving opportunity before cancellation to avoid unnecessary litigation. Authorities directed to adhere to HC's 2022 directives, not issue show-cause notices without detail

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Tax credit on rent disallowed – sub judice. Reverse charge on freight inadmissible under Sec 98(2). Input/output set-off query outside Sec 97(2).
Case-Laws
GST
Input tax credit eligibility on renting commercial property deemed inadmissible as the matter is sub judice before the Supreme Court. Applicability of reverse charge mechanism on inward freight held inadmissible due to the issue already decided in prior proceedings, invoking Section 98(2) proviso of CGST Act. Query regarding sett

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Supply of security services to BBMP not exempt from GST as not related to functions under Articles 243G/243W. Outsourced security services attract GST.
Case-Laws
GST
Supply of Security services to Bruhat Bengaluru Mahanagara Palike (BBMP) are not exempt from GST as they do not qualify as activities related to functions entrusted to a Panchayat under Article 243G or Municipality under Article 243W of the Constitution. The Advance Ruling Authority held that obtaining security services on

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Pure services to State Govt related to Panchayat functions under Article 243G are GST exempt as per Entry 3 of Notification 12/2017-CTR.
Case-Laws
GST
The applicant provides pure services to the State Government by way of activities related to functions entrusted to a Panchayat under Article 243G of the Constitution. These pure services provided to the State Government are exempted from GST as per Entry No. 3 of Notification No. 12/2017-Central Tax (Rate), dated 28th June 2017. The rent

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Employers can recover bonuses/allowances from employees who exit early, as per contract. It's not a taxable service under GST.
Case-Laws
GST
Recovery of joining bonus, retention bonus, work from home one-time setup allowance, and tuition assistance program expenses by an employer from employees who voluntarily exit before serving the pre-agreed period is not taxable under GST. These are considered perquisites provided by the employer as per contractual agreement and their recovery is ak

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Professional tax filing services for BWSSB don't qualify for exemption as it's not a local authority & services aren't for panchayat/municipality functions.
Case-Laws
GST
Professional services for assistance in filing corporate tax returns provided to BWSSB do not qualify as exempt supply under SI No. 3 (chapter 99) of Notification 12/2017-Central Tax (Rate) dated 28 June 2017. BWSSB is not a Local Authority as its members are appointed by State Government, not elected through direct el

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Company Penalized for Profiteering by Overpricing Movie Tickets Despite GST Cut, Violating Section 171 of CGST Act.
Case-Laws
GST
Profiteering established by increasing base prices of movie tickets despite GST rate reduction from 28% to 18% for admission tickets above Rs. 100, contravening Section 171 of CGST Act. Respondent failed to pass on benefit of Rs. 88,67,790/- to customers from 01.01.2019 to 30.04.2020. Directed to reduce ticket prices commensurately and deposit profiteered amo

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Attention: Increase in size of documents upload in Principal Place of Business and Additional Place of Business for New Registration and Amendment
GST
Dated:- 9-7-2024

Dear Taxpayer,
GSTN is pleased to inform that changes have been made in size of document upload in Principal Place of Business and Additional Place of Business for New Registration and Amendment catering to the grievances received in the matter from trade.
Taxpayer can now upload following documents up to maximum s

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Genuine issues in manual refund application merit liberal approach. Avoid undue technicalities & litigation. Foster assessee-friendly system.
Case-Laws
GST
Regarding processing of manual refund application, it is held that when genuine issues arise, the Department should adopt a liberal approach, particularly considering that no party would intentionally delay or fail to file refund application in the portal when substantial refund amount is due. The Department should avoid unwarranted

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Notices ignored, order quashed. Case remitted for fresh decision on recovered amounts. Order treated as addendum to show cause.
Case-Laws
GST
Principles of natural justice violated as petitioner unaware of notices preceding impugned order. Court granted partial relief, quashed impugned order, and remitted case to respondent for fresh orders considering amounts recovered pursuant to attachment. Impugned order treated as addendum to show cause notices. Petition allowed.
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Fusible interlining fabric of cotton not classifiable under Heading 5903; visible plastic coating pattern disqualifies it.
Case-Laws
GST
The fusible interlining fabric of cotton is not correctly classifiable under Heading 5903 of Chapter 59 of the Customs Tariff Act, 1975. The Heading 5903 applies only to fabrics where impregnation, coating, or covering cannot be seen with the naked eye. The fabric manufactured by the petitioner is partially coated, and the plastic coated pattern is vis

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High Court: Petitioners entitled to refund of unutilized ITC on zero-rated supplies despite delayed approval of CENVAT credit carry forward.
Case-Laws
GST
The High Court held that the petitioners were entitled to refund of unutilized input tax credit (ITC) on zero-rated supplies. The only ground for denying refund by the appellate authority was that no balance was available in the electronic credit ledger when the petitioners became entitled to the refund, as the carried forward CENVAT

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Transitional credit denial notice lacked details. Reply disregarded for manual submission. Order treated as show cause. Dept to issue reasons, allow rebuttal.
Case-Laws
GST
Show cause notice lacked necessary details for denying transitional credit of Rs.14,05,211/-. Petitioner's reply not considered as it was submitted manually, not uploaded on portal, violating principles of natural justice. Impugned order treated as show cause notice. Respondent directed to issue supplementary reasons

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