Goods and Services Tax

Dealer Entitled to GST Refund When Input Tax Exceeds Output; Court Lowers Interest on Refund from 9% to 6.
Case-Laws
GST
The High Court held that u/s 54 of the Goods and Services Tax Act, 2017, when the input tax credit paid is higher than the output tax, the dealer is entitled to seek a refund of the excess amount. The Court rejected the Revenue's argument that the dealer voluntarily paid excess tax, as the legislative intent is to provide a refund when the input tax credit exceeds the

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Tax Turmoil: GST Notification Challenged as Ultra Vires.
Case-Laws
GST
The notification bearing No. 56/2023 is ultra vires Section 168A of the CGST Act, 2017 as it lacks the mandatory recommendation of the GST Council. Consequently, actions based on such notification are invalid. The petitioner is entitled to reliefs proposed in the Financial Bill 2024. Examination is required regarding applicability of force majeure for extending time limit u/s 73(9) considering the 49th GST Council me

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Traders' GST registration restored if pending returns filed, tax dues paid in 45 days.
Case-Laws
GST
Cancellation of GST registration due to failure to file monthly returns for six consecutive months. Court followed Suguna Cutpiece judgment, directing restoration of registration subject to conditions: filing pending returns, paying tax dues with interest, and late fees within 45 days. Restoration contingent upon fulfilling stipulated conditions. Consistent approach maintained to ensure

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Eligibility of ITC for 'Rotary Parking System' Denied; Classified as Immovable Property Under CGST/TNGST Act 2017.
Case-Laws
GST
The case pertains to the admissibility of Input Tax Credit (ITC) on the 'Rotary Parking System' falling under HSN code 8428 and the blocking of credit u/s 17(5) of the CGST/TNGST Act, 2017. The appellant renders 'Renting of Immovable Property Service' and proposes to install a 'Rotary Car Parking System' within the premises, not inside the building, to provide

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Accused's Right to Statutory Bail: When Probe Delays Impede Justice.
Case-Laws
GST
Statutory bail provision u/s 167(2)(a)(ii) of CrPC is a beneficial provision granting relief to accused if investigating agency fails to complete investigation within stipulated time. Right to apply for statutory bail is a Constitutional right recognized by Apex Court. Initial serious allegations of tax evasion and unscrupulous means to pass undue advantage of Input Tax Credit generated by bogus entities

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GST Prosecution Quashed for Ignoring Special Procedures Under GST Act, Lacking Necessary Sanction.
Case-Laws
GST
GST Authorities invoked penal provisions under Indian Penal Code against the petitioner without invoking penal provisions of GST Act, despite the alleged offences being covered under GST Act. This was done without obtaining sanction u/s 132(6) of GST Act. The court held that GST Act is a special legislation dealing with GST-related procedures, penalties, and offences. Authori

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Non-payment of tax, excess ITC claimed: Petitioner gets rehearing, ordered to deposit Rs.10 lakh pre-deposit.
Case-Laws
GST
Petitioner challenged adjudication order u/s 73 of CGST/WBGST Act, 2017 regarding discrepancies in returns, short payment of tax, and excess availment of Input Tax Credit (ITC). Court directed proper officer to afford fresh opportunity of hearing to petitioner. Considering determination already made, petitioner directed to deposit pre-deposit sum of Rs.10 lakhs wit

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Input Tax Credit disallowed due to delay challenged; Court orders reassessment considering amendments and other issues.
Case-Laws
GST
The High Court set aside the impugned assessment order that disallowed Input Tax Credit solely on the ground of delay u/s 16(4) of the GST Acts. The Court directed the assessing authority to re-do the assessment considering the amendment and reconsider the petitioner's submissions on three other issues: ineligibility u/s 17(5), ineligible ITC declaration,

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Unfair tax assessment due to improper notice delivery, order quashed. Taxpayer to deposit 25% disputed tax, file objections.
Case-Laws
GST
Principles of natural justice violated due to improper service of show cause notice (SCN). SCN and impugned order uploaded on GST portal, but mismatch between GSTR-7 and GSTR-3B returns. Impugned assessment order set aside. Petitioner directed to deposit 25% of disputed tax within two weeks. Upon compliance, assessment order treated as SCN, and petit

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Importer mistakenly omitted IGST from returns but allowed to claim credit upon submitting bills of entry.
Case-Laws
GST
The petitioner paid Integrated Goods and Services Tax (IGST) of Rs. 85,70,105/- on imported goods, which was not disputed. The petitioner availed Input Tax Credit of the paid IGST as permissible under the SGST Act. While filing GSTR-2A returns, the petitioner reflected the IGST details, but inadvertently omitted to include the same in GSTR-3B returns for July, August,

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Penalty imposed for tax return discrepancy; Court orders fresh hearing for petitioner's objection within 2 weeks.
Case-Laws
GST
Penalty levied u/s 73 of SGST and CGST for alleged discrepancy between value of supply reported in GSTR 3B and GSTR 1. Court held that Revenue did not have serious objection considering petitioner's willingness to pay 10% penalty and inability to participate due to ill-health. Impugned order set aside, directing fresh order after providing opportunity of hearin

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Advisory on Reporting of supplies to un-registered dealers in GSTR1/GSTR 5
GST
Dated:- 4-9-2024

Vide Notification No. 12/2024 – Central Tax dated 10th July, 2024, the Government has reduced the threshold limit for reporting of invoice wise details of inter-state taxable outward supplies made to unregistered dealers from 2.5 Lakh to 1 Lakh which needs to be reported in Table 5 of Form GSTR-1 and Table 6 of GSTR-5. In accordance with the new legal provisions, this change is currently

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Cancellation order quashed; authorities denied hearing despite medical emergency, lacked reasoning.
Case-Laws
GST
The High Court quashed the order of cancellation of registration passed by the respondent authorities without providing an opportunity of hearing to the petitioner, despite a request for adjournment due to a medical emergency. The court observed that the impugned order lacked proper reasoning and supporting documentary evidence, and the authorities showed undue haste and an

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Goods & Service Tax: Adjudication Order Upheld Despite Procedural Lapses in Uploading Summary.
Case-Laws
GST
Petitioner challenged determination made by respondents on 30th December 2023 u/s 73(9) of CGST/WBGST Act 2017, alleging violation of principles of natural justice without issuance of show cause notice in Form GST DRC-01 and without uploading on portal. Court observed petitioner was duly served show cause notice prior to adjudication order for tax period 2017-18 to 2022-23 throug

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Unfair GST registration cancellation order quashed, remanded for reasoned decision. Show-cause notice stage revisited.
Case-Laws
GST
Order of cancellation of registration passed without giving reasons, appeals dismissed u/s 107 of GST Act. Appellate Authority's dismissal prevents revisional powers u/s 108. Impugned orders quashed, matter remanded to Assessing Officer at show-cause notice stage. Registration remains suspended till show-cause notice decided as per directions. Petition par

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Preliminary GST notice issued for discrepancy, assessee can raise objections if proceedings not concluded.
Case-Laws
GST
Non-compliance with provisions of the Goods and Services Tax Act, specifically Section 74(1) of the Central/Bihar Goods and Services Tax Act, 2017, was raised regarding the illegality in issuance of notice. The court held that there were no grounds to entertain the writ petition on the stated illegality, as an explanation was sought for the discrepancy, and the assess

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Court Rules Unadjusted TDS Cannot Transition as Input Tax Credit; Refunds Allowed, Penalties Imposed for Irregularities.
Case-Laws
GST
Transitioning unutilized input tax credit under the Kerala Goods and Services Tax Act, 2017 – error in claiming input tax credit of unadjusted TDS. The High Court held that unadjusted TDS, being a component of output tax payable, cannot be transitioned as unutilized input tax credit. While the appellant had utilized Rs.37,24,463/- for paying output tax d

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Disputed GST liability from govt contracts: Fresh chance to prove non-liability.
Case-Laws
GST
In a case concerning liability for Goods and Services Tax (GST) arising from civil contracts with government departments, the petitioner sought another opportunity to establish non-liability. The petitioner expressed willingness to remit 10% of the disputed tax demand as a condition for remand. The High Court, with a view to provide an opportunity to the petitioner, set aside the impugned orde

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Invoice Management System
GST
Dated:- 3-9-2024

To enable taxpayers to efficiently address invoice corrections/amendments with their suppliers through the portal, a new communication process is being brought at portal. This will also facilitate taxpayer in matching of their records/invoices vis a vis issued by their suppliers for availing the correct Input Tax Credit (ITC). GSTN is in the process of developing a new functionality called Invoice Management System (IMS) which will allow the recipient taxpayers to either accept or reject an invoice or to keep it pending in the system, which can be availed later.
2. This facility shall be available to the taxpayer from 1st October onwards on the GST portal.
The said functionality would be a major enhancement in the ITC ecosystem of GST. Now, only the accepted invoices by the recipients would become part of their GSTR-2B as their eligible ITC. Therefore IMS will provide the taxpayers an opportunity to review the genuineness a

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ice filed in GSTR 1 through GSTR-1A then same will also flow to IMS, however, ITC corresponding to the same will flow in GSTR-2B of the recipient, generated for the subsequent month only. The invoices which would be kept pending can be availed by taxpayers at any future point of time but not later than the limits prescribed by Section 16(4) of the CGST Act, 2017. All the invoices/ records reported or saved by the supplier taxpayer in their GSTR 1 or IFF or GSTR-5 or GSTR-6 will be available in the IMS dashboard of the recipient taxpayer for taking the actions. Supplier will also be able to see, what action his recipient has taken on invoices in IMS.
5. Further, at the time of generation of GSTR-2B only the filed invoices/records by the supplier, will be considered for the computation of ITC. Based on the current cut-off dates and action taken by the recipient, a draft GSTR-2B will be made available to recipient on 14th of the subsequent month as currently being generated. However, the

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or the month, same will be carried forward in IMS itself for further action in subsequent months.
This functionality is a facilitation for the taxpayers and will not add any compliance burden on the taxpayers as No Action records shall be considered as Deemed Accepted and the taxpayer's intervention will only be required in case a record need to be Rejected or kept Pending.
QRMP Taxpayers:
The records/invoices saved or filed through IFF by a QRMP taxpayer will flow to IMS for the recipient, and will become part of GSTR-2B, as per action taken by the recipient in IMS on the same. The GSTR-2B of the recipient will be generated monthly, unless the recepient is a QRMP taxpayer. It may be noted that GSTR-2B will not be generated for Month M-1 and M-2 for QRMP taxpayer. GSTR-2B for a QRMP taxpayer will be generated on Quarterly basis only.
Flow of IMS:
All the outward supplies reported in the GSTR 1 / IFF / 1A shall populate in the IMS of recipients for taking the actions.
1. Accept –

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nd action taken thereon:
Key points on IMS:
1. Deemed accepted: At the time of GSTR-2B generation, a record will be considered as 'Deemed Accepted' if no action is taken on that record in IMS.
2. It is mandatory to recompute GSTR-2B from IMS dashboard in case of any change in action already taken on concerned records or any action is taken after 14th of the month i.e. date of generation of Draft GSTR-2B.
3. Following supplies will not go to IMS and will be directly populated in the GSTR 3B –
a. Inward RCM supplies where supplier has reported in the Table 4B of IFF / GSTR 1 or GSTR 1A and
b. supplies where ITC is not eligible due to section 16(4) of CGST Act or on account of POS rule.
4. Records will flow to IMS dashboard at the time of saving of record by supplier in respective form and recipient can take action on such record in IMS. However, such records will be populated in the GSTR-2B after filling of return in GSTR-1/IFF/1A by the supplier.
5. All the accepted/ deemed ac

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Authorities canceled petitioner's registration without due process, Court intervenes.
Case-Laws
GST
The High Court found that the authorities had violated the principles of natural justice by cancelling the petitioner's registration without providing an opportunity for a hearing or assigning reasons. Despite a previous judgment directing the authorities to issue show cause notices and orders with necessary details in physical form, they issued cryptic notices and orders for cancellation

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Deficient show cause notice lacking factual details set aside for violating natural justice principles.
Case-Laws
GST
Show cause notice lacking essential factual details and merely reproducing statutory provision violates principles of natural justice, depriving assessee of opportunity to file effective reply. Impugned show cause notice set aside as it fails to disclose minimum factual basis for invoking power u/s 29 of Central Goods and Services Tax Act, 2017. Mere reproduction of offe

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Interim relief granted for reversing ITC availed in late GSTR-3B filing, subject to deposit of Rs. 25 lakhs.
Case-Laws
GST
Petition challenging adjudication order u/s 73(9) of CGST/WBGST Act, 2017 for reversing ITC availed in GSTR-3B filed after prescribed time limit u/s 16(4). Court noted Rs. 63,28,114/- was found reversible as per show cause notice. Considering proposed amendment in Finance Bill 2024 allowing ITC for returns filed till 30.11.2021 for FY 2017-18 to 2020-21, and petitio

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Gross and Net GST revenue collections for the month of Aug, 2024
GST
Dated:- 2-9-2024

GST Gross and Net Collections (Amount in crores) August 2024
Monthly
YTD
GST Collections
Aug 2023
Aug 2024
% Growth
Aug 2023
Aug 2024
% Growth
A
B
C
D = C/B-1
E
F
G = F/E-1
A.1. Domestic
CGST
28,328
30,862
1 ,55,965
1 ,72,130
SGST
35,794
38,411
1 ,94,949
2 ,13,219
IGST
39,701
44,593
2 ,19,426
2 ,50,999
CESS
10,679
11,120
54,046
58,691
Gross Domestic Revenue
1,14,503
1,24,986
9.2%
6,24,385
6,95,038
11.3%
A.2. Imports
IGST
43,550
49,028
2,00,568
2,13,783
CESS
1,016
948
4,842
5,034
Gross Import Revenue
44,566
49,976
12.1%
2 ,05,411
2 ,18,817
6.5%
A.3. Gross GST Revenue(A.1+A.2)
CGST
28,328
30,862
1,55,965
1,72,130
SGST
35,794
38,411
1,94,949
2,13,219
IGST
83,251
93,621
4,19,994
4,64,782
CESS
11,695
12,068
58,888
63,725
Total Gross GST Revenue
1,59,0

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006
12.3%
C.2 Net IGST Revenue (A.2 – B.2)
IGST
34,928
38,954
1,59,103
1,63,125
CESS
876
860
4,117
4,344
Net IGST Revenue
35,804
39,814
11.2%
1,63,220
1,67,470
2.6%
C.3 Net Revenue (C.1+C.2))
CGST
25,989
27,244
1,42,422
1,57,843
SGST
32,913
34,006
1,78,267
1,95,334
IGST
71,036
77,720
3,54,180
3,91,649
CESS
11,408
11,531
57,275
61,649
Total Net GST Revenue
1,41,346
1,50,501
6.5%
7,32,144
8,06,475
10.2%
Note : The above numbers are provisional and the actuals number may have slightly vary on finalisation
Table 1: State-wise growth of GST Revenues during August, 2024 1
State/UT
Aug-23
Aug-24
Growth (%)
Jammu and Kashmir
523
569
9%
Himachal Pradesh
725
827
14%
Punjab
1,813
1,936
7%
Chandigarh
192
244
27%
Uttarakhand
1,353
1,351
0%
Haryana
7,666
8,623
12%
Delhi
4,620
5,635
22%
Rajasthan
3,626
3,820
5%
Uttar Pradesh

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ory
184
199
8%
Center Jurisdiction
193
288
49%
Grand Total
1,14,503
1,24,986
9%
Table-2: SGST & SGST portion of IGST settled to States/UTs till August, 2024 (Rs. in crore)
Pre-Settlement SGST
Post-Settlement SGST2
State/UT
Aug-23
Aug-24
Growth
Aug-23
Aug-24
Growth
Jammu and Kashmir
1,284
1,289
0%
3,457
3,717
8%
Himachal Pradesh
1,130
1,172
4%
2,415
2,604
8%
Punjab
3,555
3,890
9%
9,052
9,464
5%
Chandigarh
284
316
11%
929
950
2%
Uttarakhand
2,202
2,507
14%
3,444
3,880
13%
Haryana
8,304
9,664
16%
14,403
16,251
13%
Delhi
6,430
7,342
14%
13,300
14,804
11%
Rajasthan
7,167
7,569
6%
16,060
17,479
9%
Uttar Pradesh
13,552
15,146
12%
30,822
35,512
15%
Bihar
3,444
3,768
9%
10,723
11,768
10%
Sikkim
237
165
-31%
486
410
-16%
Arunachal Pradesh
306
263
-14

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Tax liability determined via audit findings upheld despite irregular memos; SCN valid.
Case-Laws
GST
The petitioner challenged the issuance of multiple audit memos determining tax liability beyond the stipulated period u/s 65(4) of the CGST/DGST Act. While the multiple audit memos indicating findings and demanding tax payment were irregular u/s 65(6), the impugned show cause notice (SCN) premised on the audit report findings is within the statutory framework. Any irregularities in issui

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Court Upholds Bank Account Attachment for Unpaid GST, Emphasizes Revenue Protection Over Section 67 Duration Limits.
Case-Laws
GST
The High Court dismissed the petition challenging the provisional attachment of the petitioner's bank accounts u/s 83(1) of the CGST/DGST Act. The court held that the pre-condition of initiation of proceedings under Chapter XII, XIV or XV was satisfied as proceedings u/s 67 had commenced prior to the attachment order. The contention that the attachment order

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