Goods and Services Tax

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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GST Updates: Vehicle Leasing, Electricity Charges, Barley Processing, Mineral Trusts, and Landscaping Services Explained.
Circulars
GST – States
Clarifications provided on applicability of GST: 1) Leasing of motor vehicles without operators not included in 'same line of business' for passenger transport services, attracting higher GST rate. 2) Electricity charges reimbursed by lessees/occupants to real estate companies/malls taxable as part of composite supply of renting/maintenance ser

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Strict SOP for GST registration cancellation of fraudulent taxpayers. Curbing fake invoices, wrongful ITC claims. Evidence-based scrutiny, reasoned orders.
Circulars
GST – States
The circular provides a Standard Operating Procedure (SOP) for cancellation of GST registration of non-genuine taxpayers and creation of a repository of such entities. It outlines the background, legal provisions, procedure for cancellation initiated by the officer or on application, collection of evidence duri

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Services by directors in personal capacity exempt from RCM. Official services attract RCM. Cinema food taxed at 5% GST if unbundled.
Circulars
GST – States
Clarifications issued on applicability of GST Reverse Charge Mechanism (RCM) for services provided by directors to companies and taxability of food/beverages supplied in cinema halls. Services by directors in personal capacity like renting immovable property are not subject to RCM. Only services rendered in director's official capaci

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KGST Act: Recipient can avail ITC on RCM supplies from unregistered suppliers in FY when invoice issued, subject to conditions.
Circulars
GST – States
The circular clarifies the time limit u/s 16(4) of the KGST Act, 2017, for availing input tax credit (ITC) by the recipient on tax paid under reverse charge mechanism (RCM) for supplies received from unregistered persons. It states that where the recipient is liable to pay tax on RCM supplies from unregistered suppliers and issue an invoi

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Rule 28(1) KGST: Imported Services from Foreign Affiliates Can Be Valued as Nil Without Invoice if Fully Creditable.
Circulars
GST – States
Clarifies that in cases of import of services by a registered person in India from a related person located outside India, where the recipient is eligible for full input tax credit, the value declared in the invoice by the recipient shall be deemed as open market value as per the second proviso to Rule 28(1) of KGST Rules. Further, if no invoice is

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New Procedure for Manufacturers: Substitute Machine Details, Certify Energy Ratings, Report Sale Price Without MRP.
Circulars
GST – States
Circular clarifies issues related to special procedure for manufacturers of specified commodities. Unavailable machine details can be substituted with year of purchase or assigned numeric number. Electricity consumption rating can be certified by Chartered Engineer if unavailable. For goods without MRP, sale price to be reported. Practicing Chartered

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Petition dismissed for delay. Approach Appellate Commissioner after depositing 25% disputed tax (10% mandatory + 15% for delay). Deposit within 30 days.
Case-Laws
GST
Petition dismissed due to time limitation. Petitioners granted liberty to approach Appellate Commissioner u/s 107 of GST Act, subject to depositing 25% of disputed tax, with 10% being mandatory requirement u/s 107 and additional 15% for approaching court after expiry of limitation period. Petitioners directed to deposit 25

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Order quashed for denying oral hearing before adverse assessment. Mandatory hearing in heavy liability cases. Fresh notice to petitioner in 2 weeks.
Case-Laws
GST
Order set aside for violation of principles of natural justice by denying petitioner opportunity of oral hearing before passing adverse assessment order raising excess demand. Assessing Authority mandated to afford such opportunity irrespective of petitioner's choice. In assessment orders creating heavy civil liability, granti

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Tax notice missed online, court allows fresh hearing on depositing 10% tax. Order quashed, case remanded for new decision.
Case-Laws
GST
The court found the petition maintainable despite the time limitation, as the petitioner failed to notice the show cause notice (SCN) posted on the GST common portal. Partial relief was granted by quashing the impugned order and remitting the case back to the respondent for fresh orders, subject to the petitioner depositing 10% of the disputed tax fro

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Mismatch in tax credits claimed by petitioner. Court granted partial relief by cancelling tax demand, subject to Rs. 10,000 deposit. Fresh hearing ordered.
Case-Laws
GST
Discrepancies between input tax credit availed by petitioner in GSTR 3B and auto-populated GSTR 2A. Court granted partial relief by setting aside impugned order confirming IGST demand and interest, subject to petitioner depositing Rs. 10,000. Petitioner to file reply to show cause notice with deposit within 30 days. Imp

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Tax appeal allowed after deposit. Authority to decide swiftly within 3 months.
Case-Laws
GST
Petition maintainable, time limitation condoned. Petitioner allowed to file statutory appeal before Appellate Deputy Commissioner (GST), Trichy, upon depositing additional 25% of disputed tax. Appellate authority directed to entertain appeal and dispose it on merits expeditiously within three months of filing, in accordance with law.
TMI Updates – Highlights, quick notes, marquee, annotation

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Tax demand overlapped for same years. But lack of response to notices requires fresh orders after proper consideration.
Case-Laws
GST
Overlapping demand confirmed u/s 63 and Section 74 of TNGST Act for same assessment years cannot be challenged. However, petitioner's failure to reply to show cause notices preceding impugned orders necessitates remand for fresh orders on merits in accordance with law by respondents after detailed consideration. Petitions disposed off through remand.

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Applicant granted bail for false tax claims from fake firms! Multiple firms, no real business. High Court cites ARNESH KUMAR case.
Case-Laws
GST
The applicant sought regular bail for allegedly illegally claiming Input Tax Credit (ITC) through fake firms without conducting any business or supply of goods, contravening provisions of the CGST Act. Statements recorded u/s 136 of the CGST Act were considered relevant. Evidence showed the applicant operated multiple firms on a single PAN, cla

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High Court Quashes GST Cancellation, Orders Rehearing with 10% Deposit Due to Premature Action.
Case-Laws
GST
The petitioner's GST registration was cancelled due to failure to file returns and non-compliance with show cause notices. High Court found a contradiction as the registration was cancelled before the return period. The matter is remitted for fresh orders, and petitioner must deposit 10% disputed tax for a rehearing. Impugned orders quashed, treated as part of show cause notices

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Court Allows Late GST Appeal Filing Due to Lack of Online Notice; Orders New Hearing u/s 107.
Case-Laws
GST
The appeal filed by the petitioner u/s 107 of the West Bengal/Central Goods and Services Tax Act, 2017 was rejected. The petitioner argued lack of opportunity to respond to Show Cause Notice (SCN) online. The court found the delay in filing the appeal justified due to lack of knowledge of the order and allowed condonation beyond the prescribed period. The appellate authority's dec

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Interest on Delayed Tax Payment Under CGST Act Not Applicable from Cash Ledger Deposit Date to Return Filing.
Case-Laws
GST
The High Court addressed the demand for interest u/s 50 of the Central Goods and Services Tax Act, 2017. It clarified that interest on delayed tax payment is not applicable from the date of deposit in the electronic cash ledger until the filing of the return. The Court emphasized that interest is compensatory and can only be imposed from the due date of tax payment

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Court rules denial of oral hearing violates natural justice. Even if not requested, authority must provide it before adverse decision.
Case-Laws
GST
The High Court found a violation of the principles of natural justice due to the Assessing Authority's denial of an oral hearing opportunity. The court held that even if the petitioner did not request a personal hearing, the Authority must still provide it before making an adverse decision, especially in cases with significant civil liabili

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Court said pay 20% of tax, not interest! Follow statutes for fair rulings. Appeal allowed.
Case-Laws
GST
The High Court reviewed a challenge to an interim order requiring appellants to deposit 20% of the remaining unpaid interest within a specified timeframe. The court held that the statute governing appeals to the tribunal does not mandate payment of 20% of disputed interest, but rather 20% of the remaining tax amount in dispute. The court emphasized that statutory provisions should gu

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High Court rules in favor of delayed appeal due to retrospective tax law change. Appellate authority to reconsider impact.
Case-Laws
GST
The High Court considered a case involving the effect of a retrospective amendment in Section 50 of the CGST Act, 2017 by the Finance Act, 2021. The petition was dismissed due to the appellants' delay in approaching the court. The court noted that the appellate authority did not address the impact of the retrospective amendment in its previous order. A

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High Court: Starting production before approval doesn't deny incentives under Bihar Industrial Incentive Policy. Order set aside, payments due in 3 months.
Case-Laws
GST
The High Court addressed the issue of reimbursement of VAT/ET/SGST under Bihar Industrial Incentive Policy, 2011. The petitioner's claim was rejected due to starting production before approval by SIPB. The Court held that starting production before approval does not justify denial of incentives. The impugned order was s

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AAR: clarified what qualifies as parts of warships/submarines for GST. Engines, gearbox, propellers are considered integral.
Case-Laws
GST
The Advance Ruling Authority (ARA) addressed the interpretation of the expression “parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907” in specific notifications. The key issue was whether the goods/spares used were parts of warships/submarines. The ARA held that essential components like engines, gearbox, propeller, etc., are integral part

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Liquidated damages for breach of contract are taxable under GST as a service. Compensation for tolerating non-performance is also subject to GST.
Case-Laws
GST
The Advance Ruling Authority determined that the levy of GST on liquidated damages constitutes a supply of service under the Central Goods and Services Tax Act. Liquidated damages received for breach of contract or non-performance are considered income and fall under the definition of consideration for tolerating an act, thereby

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AAR found sewerage water treated by GVSCCL supplied to industries subject to NIL GST rate as purified water, not potable.
Case-Laws
GST
AAR analyzed the issue of GST levy on sewerage water treated by GVSCCL and supplied to industries. Water falls under Chapter heading 2201 of GST Tariff. Two schedule entries exist for water under CGST Act: one exempting drinking water at 12% tax and another taxing waters not containing sugar at 18%. The treated water supplied by applicant is not potable

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AAR: the ruling clarified GST rates for royalty charges and aggregates. Separate transactions apply with different tax rates.
Case-Laws
GST
The case involves a query regarding the classification of goods and services for GST purposes. The applicant sought clarification on the consideration charged for supplying aggregates and recovering royalty charges. The ruling determined that the applicant's tax collection on royalty charges and goods supplied separately in invoices indicated distin

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