Goods and Services Tax

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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New guidelines clarify GST rules for warranty cases, no GST on replaced goods. Extended warranty seen as separate service.
Circulars
GST
The circular provides clarification on GST liability and input tax credit (ITC) availability for warranty and extended warranty cases. It addresses issues like the replacement of goods or parts under warranty, distributor's role in replacement, and nature of extended warranty supply. It clarifies that GST is not payable on goods replenished under warra

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New Guidelines for Time of Supply in Road Construction Services Under HAM for National Highway Projects Clarified.
Circulars
GST
The Circular provides clarity on time of supply for services in construction of roads and maintenance under the Hybrid Annuity Mode (HAM) model for National Highway Projects. It states that under the HAM model, where payments are staggered over the contract period, the time of supply is determined by the date of invoice issuance or payment receipt, whichever i

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Circular clarifies no denial of tax credit for ducts & manholes in OFC networks as “plant & machinery.”
Circulars
GST
The circular addresses denial of input tax credit (ITC) on ducts and manholes used in optical fiber cable (OFC) networks u/s 17(5) of the CGST Act. It clarifies that ITC is not restricted for such items as they are considered part of “plant and machinery” essential for telecommunication services. Ducts and manholes are integral for laying OFC networks and fall within the

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India Clarifies Special Procedure for Manufacturers Under Notification No. 04/2024-Central Tax; Addresses Trade Concerns and Compliance.
Circulars
GST
A circular issued by the Government of India provides clarifications on issues related to a special procedure for manufacturers of specified commodities under Notification No. 04/2024-Central Tax. The procedure was revised following the rescission of a prior notification. The circular addresses concerns raised by trade associations, inclu

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Clarification on GST Taxability for Loans Between Related Parties: Interest Exempt, Fees May Incur Tax.
Circulars
GST
A recent circular addressed the taxability of loans between related parties or affiliates. The circular clarifies that providing loans between related parties constitutes a taxable supply under GST. However, services involving interest or discount on loans are fully exempt. Processing fees or administrative charges on loans may be subject to GST, but in cases where no su

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Clarification on IGST Act: Custodial Services to FPIs Not Classified as Services to Account Holders u/s 13(8)(a.
Circulars
GST
The circular provides clarification on the place of supply for custodial services offered by banks to Foreign Portfolio Investors (FPIs). It addresses the confusion regarding whether these services fall under the category of services provided to 'account holders' as per Section 13(8)(a) of the IGST Act. The circular explains that custodial services do not qualif

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Government Sets Monetary Limits for Appeals in Tax Cases to Reduce Litigation Under New Circular.
Circulars
GST
The circular addresses the Reduction of Government Litigation by setting monetary limits for filing appeals before GSTAT, High Courts, and Supreme Court. It refers to the National Litigation Policy, emphasizing prudent litigation practices. The circular cites Section 120 of the CGST Act, empowering the Central Board of Indirect Taxes & Customs to fix monetary limits for appeal

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Insurance Firms Can Claim Input Tax Credit on Motor Vehicle Repair Costs in Reimbursement Settlements.
Circulars
GST
The circular addresses the entitlement of Input Tax Credit (ITC) by insurance companies on repair expenses for motor vehicles in reimbursement mode of claim settlement. It clarifies that ITC is available to insurance companies for repair expenses reimbursed to insured, even if the garage issues invoices in the insured's name. ITC is permissible as the insurance company is

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Court orders refund of Rs. 30 lakh to appellants as collected due to coercion during search proceedings.
Case-Laws
GST
In a case where a writ petition was dismissed due to allegations of false statements regarding authorization, the High Court held that payment made under threat and coercion during search proceedings cannot be considered voluntary. The court directed GST authorities to refund Rs. 30,00,000 to the appellants within six weeks. The appellants can raise a claim for interest

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High Court grants relief to small dealer in tax dispute due to lack of response and credit discrepancies. Case remanded for fresh consideration.
Case-Laws
GST
The High Court addressed a case involving a violation of natural justice as the petitioner did not respond to prior notices leading to the disputed order. Discrepancies in credit amounts were noted. The Court, acknowledging the petitioner as a small dealer, granted partial relief by annulling the order and sending the case back to

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High Court grants retrospective relief for input tax credit refund under CGST Act, citing COVID period extension in Notification 13/2022.
Case-Laws
GST
The High Court addressed the issue of refunding accumulated input tax credit within a time limit for zero-rated supplies. The petitioner sought the benefit of an extended period under Clause(e) of Explanation 2 to section 54 of the Central Goods and Service Tax Act, 2017, as per Notification No. 13/2022-Central Tax. The court held that t

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The court ruled on unused tax credits from VAT to GST. Credits from TNVAT Act are protected. Refunds was denied for untransferred credits.
Case-Laws
GST
The High Court addressed the transition of unutilized input tax credit from VAT returns u/s 140 of GST enactments. It held that credits availed under TNVAT Act are indefeasible, citing a Supreme Court decision on CENVAT Credit Rules. Refund wasn't provided for untransitioned credits under TNGST Act. The petitioner's credit validity unde

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High Court ruled search invalid due to lack of reasons provided. Goods to be released in 3 weeks, refunds in 8 weeks.
Case-Laws
GST
The High Court considered a challenge to a search and seizure order under the UPGST Act. The court found non-compliance with the mandatory provision of Section 67 as the Joint Commissioner did not provide the necessary “reasons to believe” for the search. The State authorities' explanation of discrepancies in forms was deemed insufficient. Consequently, the

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HC: Recovery of incorrect refund due to duty error. Show cause notice lacked detail, violating justice. Order quashed, matter remanded for new notice.
Case-Laws
GST
The High Court examined a case involving the recovery of an erroneous refund due to an inverted duty structure. The Court found that the show cause notice lacked specific details beyond mentioning the excess refund amount. This lack of particulars violated natural justice principles as it hindered the petitioner's ability to

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High Court rules for IGST refund valuation based on invoice value. Lower value of invoice and shipping bill is to be refunded.
Case-Laws
GST
The High Court addressed the valuation of goods for calculating Integrated Goods and Services Tax (IGST) refund. The court held that the rules do not specify considering only the net realisation value; the value declared in the GST Invoice, in this case, USD 224846.75, should be used for the refund calculation. If there is a value mismatch with the

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High Court finds tax recovery proceedings invalid due to missing DIN number. Proceedings set aside. Department to proceed lawfully.
Case-Laws
GST
The High Court reviewed a case involving the challenge of tax recovery proceedings. The petitioner disputed the lack of a Document Identification St Number (DIN) in the proceedings issued by the 1st respondent. The court noted that the absence of the DIN number rendered the proceedings invalid, citing a Circular from the Central Board of Indir

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High Court Dismisses Petition on Misuse of Temporary GST Registration; Orders Investigation u/r 16 for Compliance.
Case-Laws
GST
The High Court addressed the issue of deletion of temporary registration due to non-generation of an e-way bill for a vehicle and absence of required transport documents. The Court referred to Rule 16 of the GST Rules, which allows temporary registration in specific cases. It noted that compulsory registration is necessary for inter-State taxable supplies. The

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Court ruling: Late filing not reason enough to deny transition of credit extension u/s 140(5) of CGST Act.
Case-Laws
GST
The High Court interpreted Section 140(5) of the CGST Act regarding transition of credit. The petitioner sought extension under the proviso to Section 140(5) but was rejected for not filing within the time limit. The section allows credit for duties/taxes on inputs received post the appointed day if recorded within 30 days, extendable by Commissioner for another 30 da

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High Court ruled that multiple show cause notices can be issued to an individual and their business. Proper jurisdiction must be considered.
Case-Laws
GST
The High Court addressed the issue of jurisdiction in a case involving the issuance of two show cause notices to an individual for different entities. The petitioner argued that once a notice was issued to them individually, a separate notice could not be issued for their proprietorship concern by a different Commissionerate. The Cour

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The court decided to accept the late appeals in GST case due to valid reasons provided by the petitioner.
Case-Laws
GST
The High Court addressed a challenge to appellate orders rejecting appeals as time-barred u/s 107 of GST enactments. The petitioner's appeals were filed 21 to 24 days beyond the limitation period but explained the delay due to rectification petitions. The petitioner paid 10% of the disputed tax and had funds appropriated from their bank account. The Court directed the

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Penalty proceedings under GST Act initiated after premises search deemed unjustified by High Court. Orders quashed.
Case-Laws
GST
The High Court addressed penalty u/s 129(3) of the Uttar Pradesh Goods and Services Tax Act, 2017 following premises search. Relying on precedent, the Court held that penalty proceedings post a search are not warranted. Quashed impugned orders of March 21, 2018 and August 31, 2018, finding them unjustified. Petition allowed based on lack of justification for

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Court rules in favor of petitioner in recovery case. Directed to supply demanded documents within 3 days. Petition allowed to reply within 10 days.
Case-Laws
GST
In a case before the High Court, the petitioner sought recovery of CGST, SGST, and KFC amounts following a search and seizure at their business premises. The petitioner claimed they were not provided with the demanded documents, hindering their ability to respond to the show cause notice. The Court noted the lack of a reply fro

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High Court Rules on Composite vs. Mixed Supply in Power Plant Ash Transport Case, Extends Hearing to July 2024.
Case-Laws
GST
The High Court examined whether a supply was a composite supply u/s 8(a) of the CGST Act/JGST Act or a mixed supply u/s 8(b). The supply involved transportation of Power Plant Ash within 50 km, taxed under various headings. The Court found a prima facie case of abuse of process of law and lack of jurisdiction. It held that the extended period of limitation u/s 74

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High Court ruled audit notice under Central GST Act valid if not same subject as State GST proceedings. No restriction in statute. Petition dismissed.
Case-Laws
GST
The High Court considered the validity of a notice issued u/s 65 of the Central Goods and Services Tax Act, 2017 regarding GST Audit. The writ petition challenged the Central GST authorities' power to initiate proceedings when the subject matter was already under consideration by State GST authorities. The Court held that th

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