Goods and Services Tax

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.
TMI Updates –

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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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Spectrum allocation with deferred instalments is a continuous service supply. GST due when instalments paid/due, whichever is earlier.
Circulars
GST – States
In cases of spectrum allocation where the telecom operator opts for deferred payment instalments as per the Frequency Assignment Letter (FAL) issued by Department of Telecommunications (DoT), it constitutes a continuous supply of services. The time of supply and GST payment liability arises when the instalment payments are due or m

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High Court Overturns GST Ruling, Remands Case for Reassessment After Misclassification by Advance Ruling Authority.
Case-Laws
GST
The HC held that considering the declaration issued by Indian Oil Corporation Limited stating they had discharged GST liability under RCM on services availed from the appellant, the appellant would be entitled to take advantage of the same. The matter was remanded back to the original authority for re-adjudication considering this subsequent development. The

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Order: File statutory appeal within 30 days, pre-deposit amount. Appellate Authority to dispose within 5 months, consider on merits.
Case-Laws
GST
Petitioner directed to file statutory appeal u/s 107 of TNGST Act, 2017 before Appellate Deputy Commissioner (Appeals), Tirunelveli within 30 days from receipt of order regarding wrong credit entry rectified in GSTR 3B for May 2019. Appellate Authority to consider appeal on merits without limitation and dispose within 5 months after pre-depos

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Petitioner's fake invoices & tax credits led to provisional attachment of movable assets to secure Rs. 76cr+ revenue interest. Court dismissed petition.
Case-Laws
GST
Petitioner availed fake input tax credit through bogus billing, generating fake sale invoices. Provisional attachment of movable properties in addition to immovable properties already attached was ordered u/s 83 to protect government revenue interest. Authority formed opinion based on material that petitioner's immovable p

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High Court Rules Detention for Minor E-Way Bill Error Unjust; Quashes Rs. 18.75 Lakh Penalty Due to Jurisdiction Overreach.
Case-Laws
GST
Minor error in e-way bill relating to vehicle number, goods detained citing invalid e-way bill. HC held detention unjustified as circular permits imposing penalty of Rs. 500/1,000 for minor errors like vehicle number mismatch. Tax and equal penalty demand of Rs. 18.75 lakhs quashed, being without jurisdiction. Appeal allowed.
TMI Updates – Highlig

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Un-denatured Extra Neutral Alcohol faced GST levy. Show-cause notice issued, but petitioner approached court without explanation.
Case-Laws
GST
Un-denatured Extra Neutral Alcohol was subjected to GST levy. Respondent issued show-cause notice to petitioner, allowing opportunity for written explanation and personal hearing. Petitioner approached court seeking quashing of notice without submitting explanation. Supreme Court disapproved approaching courts against show-cause notices without

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GST Ruling Application on Electricity Charges Dismissed u/s 98(2) of CGST/TNGST Act, 2017; Interpretation Argument Rejected.
Case-Laws
GST
Advance ruling application regarding maintainability, levy of GST on network/wheeling charges, cross-subsidy surcharge, additional surcharge, and fees and charges related to electricity distribution services was not admitted u/s 98(2) of CGST/TNGST Act, 2017 insofar as it relates to taxability of services. Applicant's argument regarding interpretatio

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Reverse osmosis reduces dissolved solids from 7932 to 148 mg/l for dyeing industry. Retains salts for zero liquid discharge. Taxable under CTH 2201.
Case-Laws
GST
Effluent water undergoes reverse osmosis treatment, reducing total dissolved solids from 7932 mg/l to 148 mg/l, making it suitable for dyeing industry usage. Treated water, though demineralized, retains meagre salts intentionally to meet dyeing requirements and zero liquid discharge compliance. It does not qualify for exemptio

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In case of upward price revision, supplementary invoice/debit note must be issued within 30 days. Increased rent is treated as supply under GST.
Case-Laws
GST
In case of upward price revision, a registered person will issue a supplementary invoice or debit notes within 30 days, and such revision shall be treated as supply under the GST Act, with tax payable. The applicant had entered into a contract for renting immovable property services and intends to revise the price upwards, issuing

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Advance Ruling: GST on “Deposit Contribution Works” limited to “Establishment & Supervision Charges” for self-execution schemes. No tax on third-party works.
Case-Laws
GST
Advance Ruling Authority held that the value of “Deposit Contribution Works” for discharging Goods & Services Tax should be restricted to “Establishment and Supervision Charges” and other applicable charges received by the applicant in self-execution schemes. The applicant is neither supplier nor recipient of services

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Healthcare IT/ITeS provider eligible for input tax credit on contract staffing services. Not barred by Sec 17(5), can claim u/s 16(1) of GST Act.
Case-Laws
GST
The Advance Ruling Authority held that the applicant, engaged in providing Information Technology (IT) and Information Technology Enabled Services (ITeS) for the healthcare sector, is eligible to avail input tax credit on contract staffing services received. The transaction does not fall under the categories barred by Section 17(

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AAR: Construction services for residential units <60 sq.m & commercial area <15% qualify for 8% GST after land value deduction.
Case-Laws
GST
Construction services for residential units less than 60 square meters attract 12% GST rate, reduced to 8% effective rate after deducting one-third value on account of land transfer, as per Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification 03/2019-Central Tax (Rate) dated 29.03.2019, specifically under entry 3

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AAR: Health insurance services for TNSG & reinsurance from abroad are GST exempt. ITC reversal follows Sec 17(2) & Rule 42.
Case-Laws
GST
Health insurance services provided by the applicant to Tamil Nadu State Government (TNSG) are exempted from GST under Serial Number 40 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 and corresponding TNGST Notification, as the supply is made only to the Government with total premium paid by them. Reinsurance of the health insuranc

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Cancellation order sans reasons violated precedents; notice & hearing mandatory pre-revocation to avoid business disruption if no dues.
Case-Laws
GST
The order cancelling petitioner's registration was passed without assigning any reasons, violating court precedents mandating reasons as the heart and soul of judicial and administrative orders. The appeal's dismissal on limitation grounds does not attract the doctrine of merger given the circumstances. Citing previous judgments, the court

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Petitioner denied natural justice; no notice u/s 73; failed to submit explanation despite adjournments; presumed delaying tactic; statutory remedy available.
Case-Laws
GST
Violation of principles of natural justice occurred as the impugned order was passed without following procedures u/s 169(1)(a) and 169(1)(b) of the GST Act. Petitioner was not served notice u/s 73. Despite granting adjournments, petitioner failed to submit explanation online or in person. Presumption was made that pe

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Order quashed, case remitted for fresh orders after depositing disputed tax. Treated as addendum to show cause notice. Partial relief granted.
Case-Laws
GST
Impugned order quashed, case remitted to pass fresh orders subject to petitioner depositing disputed tax amount. Impugned order treated as addendum to preceding show cause notice. Writ petition allowed, granting partial relief by providing opportunity to explain case after failure to notice hearing notices earlier, remedying time-ba

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Breakwater construction ineligible for input tax credit under GST. Not 'plant & machinery' for outward supply. Ensures ship safety, not production.
Case-Laws
GST
Breakwater construction not considered 'plant and machinery' for input tax credit eligibility under GST. Petitioner's services involve regassification of LNG, and breakwater ensures safety of berthed ships, not used for outward supply. Dictionary meaning of 'plant' indicates industrial activity/production place, which breakwate

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High Court Orders Reassessment of GST Cancellation; Dismisses Appeal as Time-Barred, Cites Article 226 for Legal Review.
Case-Laws
GST
The appeal was dismissed as barred by limitation, and the doctrine of merger does not apply when an appeal is dismissed due to limitation. The merits were not examined by the Appellate Authority. The High Court retains jurisdiction under Article 226 to examine the legality and validity of the original authority's order. Considering the petitioner's asser

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Enhancements to Address-Related Fields in GST Registration Functionalities
GST
Dated:- 4-7-2024

Dear Taxpayers,
The Following enhancements have been made to address-related fields in the registration functionalities: New Registration, Amendment Application (Core & Non-Core), and Geocoding Business Addresses. These enhancements are based on the analysis of tickets and user feedback. The details are as follows:
1. Update in Validations applicable while entering the address in address-related fields.
a. Address is in India:
* The fields PIN Code, State, District, and City/Town/Village are interlinked and must be selected from the autosuggestions.
* For other fields, taxpayer in addition to alphanumeric values can add limit

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c values and limited special characters such as Hyphen (-), Forward Slash (/), Ampersand (&), Comma (,), Apostrophes ('), Hash(#), Period(.), Small Brackets (), Inverted Commas (""), Colon (:), Semi Colon (;), Underscore (_) and Space. Other Special Characters are not allowed.
* Additionally, special characters are not allowed at the beginning of the entry for fields other than zip code, district and State.
2. Proper instructions have been added to address fields regarding input values that are allowed or not allowed for the specific field. When hovering over the icon, taxpayers would be able to view these instructions.
3. The above changes would not impact data already saved in the system, even if it contains special char

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Taxpayers – Regular, SEZ Unit, SEZ Developer, Composition, Input Service Distributer and Casual Taxpayers.
6. In addition, the field of locality/sub locality is not mandatory
i. If the Locality/Sub-locality field is left blank or is mapped to another Pin Code, the system displays the following warning messages: "Locality/Sub-locality does not match the Pin Code. Do you want to save the details?" or "You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?"
ii. Example: If you enter Pin Code 123456 but leave the Locality/Sub-locality field blank, you will see the message: "You have not filled in Locality/Sub-locality. Do you want to save the details and proceed further?

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