Goods and Services Tax

Profiteering allegations dismissed for post-GST real estate project charging 8% GST + ITC.
Case-Laws
GST
The respondent commenced a real estate project “Swastik Heights” in the post-GST regime, with commencement certificate issued on 08.03.2018 and GST registration effective from 27.02.2018. Initially, GST was charged at 8% with input tax credit (ITC). From 01.04.2019, the respondent had the option to charge either 8% GST with ITC or 1% without ITC, but continued charging 8% with ITC. T

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Excess stock found during GST inspection? Initiate proceedings u/ss 73/74, not Section 130.
Case-Laws
GST
The High Court quashed the orders initiating proceedings u/s 130 of the GST Act against the petitioner for excess stock found during inspection/search u/s 67. It held that if excess stock is found, proceedings u/ss 73/74 of the GST Act should be initiated, not Section 130 read with Rule 120. The Court reiterated that the law is clear that Section 130 proceedings cannot be invoked if

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Order Overturned: Case Remanded for Ignoring Petitioner's Clarifications on Tax Filings, Violating Natural Justice Principles.
Case-Laws
GST
Principles of natural justice violated. Respondent disregarded petitioner's clarifications, GSTR 9 reconciliation, audited balance sheet, confirming show cause notice allegations through impugned order citing “incomplete documents” despite discrepancies in GSTR 1 and GSTR 3B filings. High Court held show cause notice issued 28.12.2023, petitioner f

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Court Sets Aside GST Order Due to Hearing Denial; Case Remanded After Turnover Discrepancy Explained, 10% Payment Required.
Case-Laws
GST
Petitioner challenged impugned order regarding GST discrepancies, failing to avail opportunity of personal hearing. Court held that notice was issued by respondent based on difference between turnover reported in Form 26AS and Form GSTR 3B. Petitioner replied that difference occurred as Form 26AS includes turnover from April 2017 to June 2017, prior t

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Deficient show cause notice on GST registration cancellation quashed for lack of specificity.
Case-Laws
GST
Impugned show cause notice for cancellation of GST registration lacks specific allegations, violating principles of natural justice. Notice merely reproduces rule without specifying invoices/bills issued without supply of goods or services. Purpose of show cause notice is to enable response to allegations, which is rendered meaningless without specifics. Impugned notice fails to m

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Tax authority breached natural justice in rejecting zero-rating application; Court allows partial relief on remitting 20% disputed tax.
Case-Laws
GST
Tax authority rejected rectification application filed by taxpayer for zero-rated supply citing violation of principles of natural justice. Court examined impugned order, found taxpayer's reply and documents were considered for most defects except two. For those two defects, court set aside impugned order subject to taxpayer remitting 20%

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Firm can appeal against GST penalty without further pre-deposit if conditions met.
Case-Laws
GST
The High Court held that once the petitioner made the payment of Rs.10 lakhs and furnished a bank guarantee for the balance amount as per the court's earlier order, the petitioner's right to file an appeal against the order u/s 129(3) of the WBGST/CGST Act, 2017 crystallized. The respondents cannot insist on further pre-deposit of 25% of the penalty determined u/s 129(3) for entertaining the

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Retrospective GST registration cancellation – Insufficient reasoning on tax credits. Matter remanded for reconsideration.
Case-Laws
GST
The High Court found that the respondents failed to properly consider the petitioner's contentions regarding the retrospective cancellation of GST registration of its suppliers and the petitioner's claim of having paid taxes on its supplies. The impugned order did not specifically state whether the suppliers had paid taxes for which the petitioner claim

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Overseas recruiters face IGST scrutiny on expat salaries – Court directs tax body to consider circular.
Case-Laws
GST
Petitioner sought to quash the show-cause notice (SCN) demanding Integrated Goods and Services Tax (IGST) along with interest and penalty on salaries paid to expatriates. The issue pertained to whether the supply of manpower and recruitment services from overseas group entities to the petitioner attracted IGST. The High Court did not delve into the merits but relegated t

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Unlawful recovery notice issued; GST Act & natural justice violated. Taxpayer's representation to be reconsidered within 2 weeks.
Case-Laws
GST
Recovery notice issued without proper reasons, violating Section 78 of GST Act and principles of natural justice. Petitioner filed representation challenging notice. High Court directed respondent authority to consider petitioner's representation and dispose of the same on merits within 2 weeks, in accordance with law. Petition disposed of.

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Bail upheld for alleged tax credit fraud; agency criticized for delayed investigation.
Case-Laws
GST
Petition seeking cancellation of bail granted to respondents in a case involving filing of input tax credit for non-operational firms was dismissed. The Department contended that bail was granted at an early stage without opportunity for custodial interrogation, and that investigation into claimed input tax credits from firms with no supplies and background checks of firms and transporte

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Court upholds authority's power to issue notice alleging fraud, asks petitioner to respond – no interference at this stage.
Case-Laws
GST
The respondents were permitted to proceed against the petitioner under the provisions of the Act, including invoking powers u/s 74, following the court's modification order granting liberty to consider the matter beyond Section 73. The challenge to the notice issued u/s 74 alleging fraud or suppression of facts cannot be assailed. The determination of

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Second edition of National Conference of Enforcement Chiefs of State and Central GST Formations held in New Delhi
GST
Dated:- 21-8-2024

Two months' Special drive by Central and State formations to identify and weed out fake registrations underway since 16th August
Central and State GST formations must focus on fake registrations during the special drive to ensure deterrence: Revenue Secretary
Balance between enforcement actions and ease of doing business is important: Revenue Secretary
Enforcement units must focus on real evasion: CBIC Chairman
The second edition of the National Conference of Enforcement Chiefs of the State and the Central GST Formations was held in New Delhi. The conference was chaired by Shri Sanjay Malhotra, Secretary, Department of Revenue, Ministry of Finance. The National Conference comes in the backdrop of special drive being undertaken by both Central and State formations to identify and weed out fake registrations.
The Conference was att

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the efforts of tackling GST evasion in a systematic manner.
Setting the context of the one-day conference, Shri Sanjay Agarwal, Chairman, Central Board of Indirect Taxes and Customs (CBIC), recalled the discussion in the first edition of the conference and emphasised the need for enforcement agencies to stay ahead of the evaders so that the sanctity of the GST system is preserved. He advised the enforcement units to focus on real evasion rather than interpretative issues and general industry practice.
In his welcome address, Shri Vivek Agarwal, Additional Secretary, Revenue, expected that the participating officers would benefit from the agenda which includes discussion on sector specific enforcement issues, emerging issues in enforcement and techniques to tackle evasion. He stressed the importance of following up on the actions identified so that the useful purpose of the deliberations in the conference are achieved.
During the one-day conference, various presentations were also m

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masterminds and disrupt syndicates, operating across the country; with 170 such masterminds have been apprehended already. Some of the best practices/guidelines issued to bring in uniformity in action and ensuring ease of doing business were also deliberated.
Commissioner of Maharashtra State GST showcased the GST Enforcement Management System (GEMS) implemented in the State to ensure that the enforcement actions are properly tracked and closed so that there is transparency in the process and demands are crystallised within a reasonable time paving way for higher probability of recovery of evaded taxes.
During the focussed thematic sessions, zonal units of DGGI/CBIC presented various case studies on misuse of APMC accounts, fintech companies, clandestine clearances, issues in financial sector, taxation of emerging service sector as cryptos, NFTs, TDRs etc.
Chief Commissioner Tax (CCT), Gujarat, discussed the modes of evasion detected in manpower supply services and presented the le

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Uniform tax interpretations: CGST audit to consult policy wing before issuing show cause notice over divergent trade practices.
Circulars
GST
The Board directs that during audits, when the CGST Audit Commissioner encounters a scenario where an issue involves differing interpretations of the CGST Act, Rules, notifications or circulars, leading to non-payment or short payment of tax, and the taxpayer is following a prevalent trade practice based on a particular interpretation, the Zonal C

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Jurisdictional Limits on Appellate Authority for Delay in Appeals u/s 107(4) of the 2017 Act.
Case-Laws
GST
The judgment addresses the jurisdiction and competence of the Appellate Authority u/s 107(4) of the Act of 2017 to condone delays in filing appeals against decisions or orders passed by an adjudicating authority beyond the prescribed time limit. The Court relied on the Supreme Court's decision in Bengal Chemists and Druggists Association v. Kalyan Chowdhury, which interpreted a si

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Refund claim rejected on technicality; courts intervened to review interpretation & evidence, remanding case for fresh decision.
Case-Laws
GST
Refund claim rejected solely on non-compliance of time limit u/s 34(2) of Central Goods and Services Tax Act, 2017. Appellant authority noted facts, grounds, submissions but dismissed appeal without addressing misinterpretation of Section 34(2) raised by appellants. High Court quashed orders of authorities, remanded matter to consider refund appl

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Dismissing refund plea, Court upholds reasoned order; directs statutory appeal route over writ jurisdiction.
Case-Laws
GST
High Court rejected petitioner's writ petition challenging refund rejection order, observing that respondent authority had passed reasoned order after considering petitioner's reply and deficiencies in refund application. Court held that petitioner ought to have availed statutory appeal remedy instead of directly approaching Court. Under Article 226, High Court's ju

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Natural Justice Breach: Order Issued Without Petitioner's Response Due to Lost Documents; Disciplinary Action Considered.
Case-Laws
GST
Violation of principles of natural justice by the respondents. Impugned order passed without giving opportunity to petitioner to reply to show cause notice. Non-receipt of documents hindered petitioner's reply. Respondents lost original documents admittedly taken from petitioner, prejudicing petitioner's rights – a serious matter requiring action. Commi

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Tax transit goods detention if compliance lapses; paid u/s 129 adjustable in returns.
Case-Laws
GST
The impugned circular dated 13.04.2018 does not lead to double taxation. Section 129 aims to recover tax on goods in transit where statutory compliance for removal was not met. The tax collected at detention stage is the tax payable in returns. If excess tax is paid in GSTR-3B after detention and payment u/s 129, the supplier can claim refund. The petitioner's apprehension of double taxat

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Business faces tax filing delay backlash, court offers reprieve on penalty condition.
Case-Laws
GST
The petitioner challenged orders u/s 62 of the TNGST Act for failing to furnish returns from April to July 2023 within the prescribed period. The High Court held that considering similar circumstances where the petitioner was granted an opportunity upon payment of 25% of the differential tax, it directed the petitioner to deposit 25% of the differential tax between the tax remitted in GST

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GST notices quashed over clerical error, petitioner to pay 15% disputed tax for fresh hearing.
Case-Laws
GST
Challenge to an order issued under Form GST DRC-07 for the difference in tax amount between GSTR 3B and GSTR 1. The impugned orders were passed without considering the petitioner's reply, violating the principles of natural justice. The court held that the respondent failed to consider the petitioner's reply, which stated a clerical error in GSTR 3B and correct filing of GSTR 1,

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Financial crisis led to GST default, court restores registration to enable business & tax compliance.
Case-Laws
GST
GST registration cancellation due to default in payment caused by financial crisis. Court set aside cancellation order, directing restoration of registration to enable business operations, filing returns, and remitting statutory dues as per law. Petition disposed, allowing petitioner to continue business and facilitate tax collection by the state.
TMI Updates – Highlig

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Court Rules GST Not Applicable on Maldives Exports; Orders Reimbursement of Taxes, Interest, and Penalties.
Case-Laws
GST
Key issues of levy of GST on export of goods to the petitioner's Maldives office, zero-rate supplies, fixed establishment, location of recipient and supplier of services. The court held that the petitioner and respondent had fixed establishments in Addu City, Maldives, and the petitioner was re-registered there, not constituting a separate legal entity. The scope of

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Tax assessment order challenged; HC grants interim protection, questions notification's legality.
Case-Laws
GST
Interim protection granted by High Court against coercive action based on assessment order pending challenge to notification No. 56/2023 issued u/s 73(9) of CGST Act, 2017. Court prima facie observed notification may be ultra vires Section 168A. Examination required regarding applicability of force majeure based on GST Council meeting minutes. Respondents directed to file affi

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High Court dismisses plea on reversing input tax credit availed by buyer due to factual dispute, not jurisdictional error.
Case-Laws
GST
Petition dismissed by High Court regarding reversal of input tax credit. Court found it was not a case where authorities proceeded on assumption that input tax credit was wrongly availed by buyer despite existence of seller/supplier. Factual dispute raised, not jurisdictional issue or violation of natural justice principles. Petitioner granted liberty

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