Goods and Services Tax

Clarification on Place of Supply for Indian Advertising Agencies: Full Service vs. Intermediary Roles Impact Export Benefits.
Circulars
GST – States
This trade circular clarifies the determination of place of supply and export benefits for advertising services provided by Indian advertising agencies to foreign clients. Key points: Advertising agencies providing comprehensive services from design to media procurement are not intermediaries under IGST Act, but principal service providers

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Authorities' Order Quashed for Violation of Natural Justice; Remanded for Fresh Adjudication After Hearing.
Case-Laws
GST
The High Court quashed the impugned summary order passed without issuing Form DRC-01 show cause notice to the petitioner, violating principles of natural justice. The matter was remanded to the respondent authorities for de novo adjudication after providing an opportunity of hearing to the petitioner. Fresh order to be passed within 12 weeks in accordance with la

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Technical Glitch in GST Portal Leads to Manual ITC Transfer Approval, Overcoming Filing Challenges.
Case-Laws
GST
The summary highlights the reversal of Input Tax Credit (ITC) due to the non-electronic filing of Form GST ITC-02 by the transferor company. The key points are: Section 18(3) of the CGST Act allows transfer of unutilized ITC in case of business transfer, subject to prescribed rules. The show cause notice alleged contravention of Section 18(3) and Rule 41(1) for availing ITC

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax Order Quashed for Denying Hearing Violating Natural Justice.
Case-Laws
GST
The impugned order violated principles of natural justice by failing to provide an opportunity of hearing to the Petitioner, despite a written request, contravening Section 75(4) of the MGST Act. The order was made without adhering to the statutory requirement of granting a hearing where an adverse decision is contemplated against the person chargeable with tax or penalty. Coordinate Benches in similar cases

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Annuls Tax Order: Petitioner Wins Reconsideration Over Alleged Filing Discrepancies, Must Pay 10% Demand to Proceed.
Case-Laws
GST
The court set aside the impugned order passed by the respondent u/s 73 of the Tamil Nadu General Sales Tax Act, 2017, imposing a liability of Rs. 10.72 lakhs towards tax, interest, and penalty on the petitioner due to a discrepancy between Forms GSTR 3B and GSTR 1. The petitioner claimed a violation of natural justice as they were unaware of the procee

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax dues paid, GST license renewal directed. Respondent to communicate remaining dues, if any.
Case-Laws
GST
Petitioner's GST license was cancelled for non-payment of tax dues. Considering petitioner's counsel's submission that returns were filed and tax along with interest was paid, the court directed the respondent authority to renew petitioner's GST license within 10 days. If any other amount is due, the authority shall communicate to petitioner, who shall pay within 7 days from comm

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST registration cancelled, appeal delayed but material facts not suppressed. Court revives appeal.
Case-Laws
GST
The court addressed the issue of condonation of delay in filing an application and dismissal of an appeal on the ground of suppression of material facts regarding the cancellation of GST registration. The court referred to the Supreme Court's observation in Arunima Baruah case, which held that suppression must be of a material fact relevant for determining the lis or grantin

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Advisory for Taxpayers: New GST Provision for Metal Scrap Transactions
GST
Dated:- 14-10-2024

The government has issued Notification 25/2024-Central Tax, on October 9, 2024.under GST Sec

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

New GST Forms Introduced for Waiver Applications: Streamlined Process for Interest and Penalty Relief u/s 128A.
Notifications
GST
The key points covered in the legal document are: 1. It introduces new forms (GST SPL-01 to GST SPL-08) for taxpayers to apply for waiver of interest and penalty u/s 128A of the GST Act. 2. Form GST SPL-01 is for making an application to seek waiver, providing details of the order, tax periods, and amount of tax, interest, and penalty demanded. 3. Form GST SP

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

TDS now mandatory for metal scrap supplies between registered businesses from Oct 2024.
Notifications
GST
This notification amends the Central Goods and Services Tax Act, 2017 to mandate tax deduction at source (TDS) compliance for supply of metal scrap between registered persons. It inserts a new clause (d) specifying that any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from another registered person will be subjec

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Metal scrap suppliers need GST registration despite reverse charge from 10-10-2024.
Notifications
GST
The notification amends the earlier Notification No. 5/2017-Central Tax to exclude persons engaged in the supply of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975 from the exemption from GST registration if their entire supply is under reverse charge mechanism. The amendment comes into force from 10th October 2024. It mandates GST registration for metal scra

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

CGST Authority's Registration Cancellation Reinstated; Orders Quashed for Violating Natural Justice Principles.
Case-Laws
GST
The Central Goods and Services Tax (CGST) Authority accepted the petitioner's voluntary application for cancellation of registration with effect from 8th May 2023. However, the subsequent orders revoking the registration cancellation were passed contrary to the principles of natural justice. Consequently, all proceedings initiated thereafter were quashed. The pet

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Detention Order Challenged for Export Goods; Court Requires Verification for Zero-Rated Tax Status via GSTR-1 Submission.
Case-Laws
GST
In the case of a detention order u/s 129(3) of the Central Goods and Services Tax Act, 2017, the petitioner challenged the order on the grounds that the goods were meant for export and thus qualified for Zero Rate Sale, rendering any levy of tax or penalty without jurisdiction. The High Court held that considering the peculiar facts of the case, where t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST registration cancellation order set aside for lack of reasoning, violating natural justice principles.
Case-Laws
GST
Order cancelling GST registration quashed due to lack of reasons and violation of principles of natural justice. While SCN proposed cancellation citing incorrect form, impugned order merely reproduced provisions of Sections 29 and 30 without specifying grounds for cancellation. Failure to provide reasoning renders order unsustainable, entitling petitioners to succeed.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Allegations of tax suppression; statutory remedies advised over writ petition for factual disputes. Rectification plea rightly rejected after due process.
Case-Laws
GST
Petitioner failed to establish grounds for invoking Section 74 of CGST/SGST Acts regarding suppression allegations. Disputed questions of fact cannot be adjudicated through writ petition under Article 226. Petitioner directed to pursue statutory remedies for adjudication. Rectification application was properly rejected a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court Remands Case for Verification of GST Credit Claims and Invoice Correlation Due to Registration Issues.
Case-Laws
GST
The High Court examined the recovery of wrongly availed credit with penalty for wrongful availment during transition to GST regime. The petitioner's branches were not registered, and there was no correlation between invoices and claims made. The Court analyzed the registration status u/r 9 of Central Excise Rules, 2002, which allows exemption granted through a 2010

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Blocking Input Tax Credit Without Due Process Invalidated; Cross-Utilization Disallowed; Rs. 2.44 Cr Credit Unblocked.
Case-Laws
GST
Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST and SGST not permissible. Respondents directed to unblock credit of Rs. 2,44,05,567 in petitioners' electronic credit ledger. Utilization of remaining credit disallowed till show cause notice

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax liability imposed without show cause notice & documents, violating natural justice.
Case-Laws
GST
Non-service of show cause notice violated principles of natural justice. Respondent imposed tax liability without providing opportunity and documents to petitioner for defense. Court remanded matter to respondent for fresh consideration after petitioner pays 10% of disputed tax amount, setting aside earlier order to maintain consistency with previous cases allowing petitioner to present

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Blocking Supplier's Credit Ledger Without Show Cause Notice Breaches Natural Justice; Court Sets Aside Action.
Case-Laws
GST
Blocking of a supplier's credit ledger by mentioning 'Registration of supplier has been cancelled' without issuing a show cause notice violates principles of natural justice. Section 74 statutorily recognizes and mandates adherence to natural justice principles, while Rule 86A is silent on this aspect. Implementing Rule 86A without following natural justice may ca

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Taxpayer contests excess ITC claim, GSTR mismatch; seeks natural justice opportunity.
Case-Laws
GST
ITC availed in excess of credit reflected in GSTR-2A, mismatch between GSTR-3B and GSTR-2A, ITC not reversed based on GSTR-2A debit, non-generation of e-way bill. Petitioner seeks opportunity to explain discrepancies, invoking principles of natural justice. High Court set aside impugned order, directed petitioner to deposit 25% of disputed tax after adjusting Rs. 1,00,000 already paid wit

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Judicial review of tax authority's order for procedural flaws & lack of due process. Partial deposit ordered, fresh hearing granted.
Case-Laws
GST
Impugned proceedings challenged for exceeding scope of show cause notice, non-consideration of submissions during investigation and payments made, gross non-application of mind to material facts, and violation of natural justice principles. Impugned order set aside, petitioner directed to deposit 25% of disputed tax within two weeks, tax alre

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Court overrules tax authority's order for denying Input Tax Credit without hearing petitioner's objections.
Case-Laws
GST
Impugned order set aside due to violation of principles of natural justice. Input Tax Credit disallowed without considering petitioner's objection. Petitioner granted final opportunity to appear before respondent authorities with supporting materials on specified date and time to present case. If opportunity not availed, impugned order revived. Petition disposed.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

High Court Overturns Dismissal; Firm to Get Reconsideration Due to Hearing Breach Under CGST Act.
Case-Laws
GST
The High Court quashed the orders dismissing the appeal filed by the petitioner firm on grounds of limitation and the order passed u/s 73(9) of the Central Goods and Services Tax Act, 2017. The managing partner of the petitioner firm was critically ill with cancer from March to August 2022, and the firm had uploaded returns for March, April, and May 2022. However, the responde

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Fly Ash Blocks attract 5% GST rate regardless of fly ash content percentage. Clarified by Circular 179/11/2022-GST.
Case-Laws
GST
Fly Ash Blocks are classifiable under Entry No. 225B of Schedule-I, attracting a GST rate of 5%, as per the clarification issued by Circular No. 179/11/2022-GST dated 03.08.2022. The condition of 90% or more fly ash content applies only to Fly Ash Aggregate and not to Fly Ash Bricks or Fly Ash Blocks. Consequently, the orders passed by the Advance Ruling Auth

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Cancellation order quashed for lack of hearing & reasons; remanded for fresh decision after due process.
Case-Laws
GST
Order of cancellation of registration passed by Assessing Officer upheld by dismissing appeal on limitation ground challenged for not providing opportunity of hearing and without assigning reasons for cancellation, violating principles of natural justice. Court quashed orders and remanded matter to Assessing Officer at show cause notice stage, directing registration to

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =