Goods and Services Tax

High Court ruled in favor of petitioner who missed replying to tax notice, setting aside order & allowing time to contest.
Case-Laws
GST
The High Court addressed an issue where the petitioner couldn't upload a reply to a show cause notice (SCN) regarding discrepancies between their GSTR 1 and GSTR 3B filings. The court determined that the tax proposal was confirmed due to the petitioner's failure to respond to the SCN. To ensure justice, the court set aside the order, requiring the peti

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Competition Commission found Respondent didn't pass on GST benefits, profiteered Rs. 48,25,970. Ordered to refund with interest.
Case-Laws
GST
The Competition Commission of India found that the Respondent engaged in profiteering by not passing on the benefit of reduced GST rates to ticket recipients, resulting in a profiteered amount of Rs. 48,25,970. The Respondent was directed to reduce ticket prices and deposit the profiteered amount with interest. The amount was to be split between

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High Court rules against seizing goods in transit due to lack of evidence on undervaluation. Revenue Appeal dismissed.
Case-Laws
GST
The High Court addressed the issue of tax levy and penalty related to the release of a vehicle transporting goods without proper documents beyond the destination. The court rejected the mechanical detention of the consignment based on insufficient grounds provided by the respondent. It also emphasized that undervaluation alone cannot justify the seizure of

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Court Orders Reassessment of Tax Credit Dispute Over Non-Existent Supplier; 20% Payment Required for Remand.
Case-Laws
GST
The High Court reviewed a challenge to an assessment order, focusing on the violation of natural justice principles and the issue of input tax credit entitlement due to transactions with a non-existent supplier. The Court found that the respondent's conclusion about fake invoices lacked supporting details for the petitioner to counter. Additionally, the petitioner f

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Court discussed late appeal filing due to physical re-filing date. Emphasized acknowledgment date's importance. Delay condoned, fresh review ordered.
Case-Laws
GST
The High Court addressed the issue of time limitation in filing an appeal, specifically focusing on the condonation of delay. The appeal was filed beyond the prescribed time limit, and the key ground for rejecting it was the date of physical re-filing. The Court noted that the appeal was initially filed online on a specific d

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High Court Dismisses GST Refund Petition; Urges Petitioners to Seek Alternative Remedy u/s 107.
Case-Laws
GST
The High Court considered the maintainability of a refund claim regarding GST on health care services. The court noted the principle of unjust enrichment and the availability of alternative remedies like appeal u/s 107 of the Act. It emphasized that the power of writs under Article 226 is discretionary, with the existence of an alternative remedy generally barring its use. The c

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Court dismisses petition challenging GST levy on Extra Neutral Alcohol for lack of explanation. Opportunity missed to clarify before court challenge.
Case-Laws
GST
In a case concerning the levy of GST on Extra Neutral Alcohol (ENA), the High Court held that the petitioner failed to provide a reasonable explanation for not submitting a written explanation or seeking a personal hearing in response to a show-cause notice issued by the tax authority. The Court emphasized that the petitioner

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High Court ruled no intent to evade tax in e-way bill case. Rs. 25,000 penalty imposed. Petitioner wins refund.
Case-Laws
GST
The High Court reviewed the validity of the show cause notice (SCN) and assessment order u/s 129 of the CGST Act. The issue centered on penalty imposition due to non-updation of the e-way bill resulting from goods transfer to another vehicle. The court found no evidence of intent to contravene the Act or evade tax. Consequently, a general penalty of Rs. 25,000 wa

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High Court rules GST registration can't be canceled arbitrarily. Reasons required for cancellation under GST Act.
Case-Laws
GST
The High Court addressed the cancellation of GST registration due to failure to file returns for over six months u/s 29 of the GST Act. The court held that cancellation must be supported by reasons. The lack of reasons provided by the authority and the petitioner's subsequent payment of arrears led the court to deem the cancellation arbitrary and violative of t

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Input Tax Credit Reversal Overturned: Court Rules Supplier Responsible for Full GST Tax u/s 15(3.
Case-Laws
GST
The High Court addressed a challenge to an assessment order regarding the reversal of Input Tax Credit for credit notes issued by the supplier. The court found that the requirements under sub-section (3) of Section 15 of the GST statutes were not satisfied, leading to the supplier being liable to pay tax on the full value of supply. The court highlighted the discretionary natu

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High Court Sets Aside Assessment Order for Lack of Reasoning; Case Remanded for Reconsideration with Personal Hearing.
Case-Laws
GST
The High Court reviewed an assessment order challenged for being unreasoned. The Court found that the order lacked proper reasoning as it confirmed the tax proposal without explanation, rendering it unsustainable. The order was set aside, and the case remanded for reconsideration. The respondent was instructed to grant the taxpayer a fair opportunity, incl

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Court ruled in favor of refund claim due to inverted tax structure under CGST Rules. Refund orders quashed for fresh review.
Case-Laws
GST
The High Court considered a case involving refund of accumulated credit due to inverted tax structure u/s 54(3) Proviso and Rule 89(5) of CGST Rules. The court held that the orders rejecting the refund claims were quashed and remanded for fresh consideration by the adjudicating authority. The petition was disposed of by way of remand for proper revie

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High Court reduces penalties for e-way bill violations, cites lack of fairness. Petitioner to pay Rs. 15 Lakhs to PM Cares Fund.
Case-Laws
GST
The High Court reviewed penalties imposed for lack of e-way bills, noting violations of natural justice and lack of proper consideration. Bank Guarantees expired without renewal, leading to penalties. Petitioner directed to pay Rs. 15 Lakhs to PM Cares Fund and Rs. 75,000 to State GST authority. Petitioner exempt from GST on machinery movement. P

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High Court Rules Writ Petition Under Article 226 Is Unfit When Statutory Appeal Exists, Except for Jurisdictional Issues.
Case-Laws
GST
The High Court considered the maintainability of a writ petition challenging an assessment order under the Tax Legislation. The court held that generally, when a statutory appeal remedy is available, a writ petition under Article 226 of the Constitution of India would not be entertained. However, exceptions exist. The court noted that if an assessment o

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High Court tackles unfair tax demand, GST registration cancellation, orders reconsideration. Petitioner gets chance to contest.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice principles due to the petitioner not having a fair opportunity to contest a tax demand. The court noted that the petitioner's GST registration was canceled without sufficient opportunity to address discrepancies in returns. The court set aside the order canceling the registra

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Court rules in favor of petitioner due to lack of notice. Impugned order set aside; petitioner to pay Rs. 50,000.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice principles due to the non-receipt of show cause notice or impugned order until a recovery notice was received. The notice for a personal hearing was returned as “no such person in the address.” The court noted that the petitioner had proof of residence at the address in question after purc

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High Court rules in favor of petitioners in GST registration cancellation case, emphasizing the importance of natural justice principles.
Case-Laws
GST
The High Court considered a case involving the cancellation of GST registration due to a non-speaking order issued without providing supportive documents or adequate notice to the petitioners. Citing the importance of natural justice principles, the Court emphasized the need for an opportunity to be heard when civil consequences are like

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Tax Clarification: ESOP, ESPP, and RSU by Overseas Parent Not GST Supply; Fees May Attract GST if Charged.
Circulars
GST
The circular addresses the taxability of ESOP/ESPP/RSU provided by a company to its employees through its overseas holding company. It clarifies that the transfer of securities/shares by the foreign holding company directly to employees of the Indian subsidiary company, and subsequent reimbursement of costs by the subsidiary company to the holding company, does not co

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Guidelines for Verifying GST Compliance on Post-Supply Discounts Using Tax Credit Notes Outlined in New Circular.
Circulars
GST
The Circular addresses the mechanism for verifying compliance with Section 15(3)(b)(ii) of the CGST Act, 2017 by suppliers offering discounts through tax credit notes post-supply. It clarifies that such discounts can be excluded from taxable value if conditions are met, including the recipient's reversal of input tax credit. As no portal functionality exists fo

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Input Tax Credit on Life Insurance Premiums: No Reversal Needed u/r 42 of CGST Rules.
Circulars
GST
The circular clarifies the treatment of input tax credit in relation to life insurance premiums not included in taxable value. The circular explains that such premiums are not to be considered as pertaining to a non-taxable or exempt supply under the CGST Act. As per the Insurance Act, life insurance policies may include an investment component, but the portion of premium not included in

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Time limit for claiming input tax credit on supplies from unregistered persons clarified. Don't delay invoices!
Circulars
GST
The circular discusses the time limit u/s 16(4) of the CGST Act, 2017 for availing input tax credit (ITC) on reverse charge mechanism (RCM) supplies from unregistered persons. It clarifies that the relevant financial year for ITC availment is the year in which the recipient issues the invoice u/s 31(3)(f) of the CGST Act, subject to tax payment. Delayed issuance

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New Circular Simplifies Valuation of Imported Services from Related Persons for Full Input Tax Credit in India.
Circulars
GST
The circular addresses the valuation of imported services from a related person when the recipient is eligible for full input tax credit. It clarifies that where no consideration is involved, and the activities are not considered supplies by the related person in India, the value declared in the invoice by the recipient may be deemed the open market value. The ci

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GST Timing for Telecom Spectrum: Deferred Payments as Continuous Supply Triggering Tax at Each Due Date.
Circulars
GST
The circular clarifies the time of supply for GST payment on spectrum allocation services when telecom operators opt for deferred payments. The bidder is liable to pay GST on spectrum usage services received on reverse charge basis. If payments are made in installments, it constitutes continuous supply of services, with tax liability arising when payments are due or mad

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Insurance companies don't pay GST on salvage if it's insured's property. But if it's insurer's property, GST is due on sale.
Circulars
GST
The Circular addresses the taxability of salvage/wreck value in motor vehicle insurance claims under GST law. Insurance companies are not liable to pay GST on salvage deducted from claim settlements if such salvage remains the property of the insured. However, if the insurance contract settles the claim without deducting salvage value, making salvage

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Place of Supply for E-Commerce Goods to Unregistered Persons Now Determined by Delivery Address per Recent Circular.
Circulars
GST
A recent Circular provides clarification on the provisions of clause (ca) of Section 10(1) of the Integrated Goods and Service Tax Act, 2017 regarding the place of supply of goods to unregistered persons. The clause states that the place of supply for goods to unregistered persons is determined by the address recorded in the invoice, overriding other provisi

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